Building high-performing teams: Is Netflix's “keeper's test” the answer?

With the next performance review cycles approaching, L&D and HR leaders are pondering a critical question: What makes a high-performing team, and how to cultivate one?

In this article, we explore how to create and nurture top-tier teams in your organization by:

• Exploring current data and trends on high-performing teams
• Examining Netflix's controversial “keeper’s test”
• Discovering ways to build high-performing teams with Mollie Duffy, Head of L&D at Lattice

What makes a high-performing team?

The business case for high performance is clear:

• Top performers can be up to 800% more productive than average performers.
• Highly engaged teams can increase profitability by 23% and productivity by 18%.
• 62% of global workers report being disengaged.
• High performers are 63% more likely to quit when they receive poor-quality feedback.

But building a high-performing team isn't simply about hiring the best people. It also depends on how organisations lead, develop and support their employees.

Netflix's Keeper's Test: The quest for A-players

Netflix is well known for its high-performance culture and unconventional approach to talent.

Its Keeper’s Test asks managers whether they would fight to keep an employee or hire them again. If the answer is no, they consider whether the employee is the right fit for the team.

The philosophy reflects Netflix's belief that organisations should operate more like a professional sports team, with everyone expected to perform at their best.

The approach can maintain a high performance bar and encourage continuous development. However, an intense performance culture can also create fear, introduce bias and overlook the value of diverse skills.

So, is there another way to build high-performing teams?

Lattice's approach to high performance

Mollie Duffy, Head of Learning & Development at Lattice, highlights several factors that help create a high performance culture:

1. Leaders inspire and motivate employees
2. Employees feel empowered to perform at their full potential
3. Teams have a strong growth mindset
4. Trust and psychological safety are prioritised
5. Continuous learning is supported
6. Performance reviews and feedback drive improvement

Empower employees

High-performing employees need more than financial rewards. They also need autonomy, trust and opportunities to grow.

“High-performing employees care about more than just a paycheck. At Lattice, we train our managers on how to empower their reports and provide the autonomy they desire.”

- Mollie Duffy, Head of Learning & Development, Lattice

Make learning continuous

Employees need to refresh their skills and knowledge as their careers develop. Lattice supports this through manager development, skills-based workshops and e-learning.

“At Lattice, we offer growth opportunities through manager and leader development programs, skills-based workshops, and access to e-learning content.”

- Mollie Duffy, Head of Learning & Development, Lattice

Build trust and psychological safety

Trust gives employees the confidence to take risks, make mistakes and engage in healthy conflict that supports learning.

“At Lattice, we train all managers in how to create psychological safety in their teams.”

- Mollie Duffy, Head of Learning & Development, Lattice

Use regular feedback

Performance reviews provide structure for assessing performance, identifying development needs and aligning employees with future expectations.

Lattice has moved away from traditional annual or bi-annual reviews towards quarterly check-ins focused on performance, growth and development.

“Internally at Lattice, we re-imagined what performance looks like to provide a lightweight, impactful process that creates growth within the flow of work.”

- Mollie Duffy, Head of Learning & Development, Lattice

Netflix vs. a development-focused approach

The two approaches take different paths to high performance:

1. Performance standards: Netflix focuses on maintaining a high performance bar, while a development-focused approach creates the conditions for employees to perform at their best.
2. Employee empowerment: The Keeper’s Test centres on performance standards, while a development-focused approach emphasises autonomy and empowerment.
3. Continuous development: Netflix encourages development through its performance culture, while a development-focused approach makes learning an ongoing part of employee growth.
4. Performance management: The Keeper’s Test can support faster decisions, while regular feedback creates more opportunities to discuss performance and development.
5. Team culture: Netflix uses a professional sports team philosophy, while a development-focused approach places greater emphasis on trust and psychological safety.

Is Netflix's Keeper's Test the answer?

Not on its own.

Netflix demonstrates the value of setting a high performance bar. Lattice highlights the importance of creating the conditions that help employees reach and sustain that standard.

For HR and L&D leaders, building high-performing teams means looking beyond hiring and retaining top talent.

It means combining strong leadership, skills development, employee empowerment, continuous learning, psychological safety and regular feedback.

Ultimately, high-performing teams aren't built through performance management alone. They are built through the combination of high expectations and continuous development.

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