Netflix incredible unstoppable productivity rise revealed: how it has increased its revenue per employee by 60% in 5 years.
The growth of Netflix in the last five years has not only been based on the increase in users and revenues, a greater offer of titles or a successful launch strategy, but also on a virtuous combination between the number of employees and its revenues, to the point of having increased by 60% its productivity in five years, and have a tough confrontation in this section with Apple between the Great American technologies.
The company led by Reed Hastings was admitted in the first semester of 2020, with the effect of the pandemic of coronaviruses including, 11.915 million dollars (10,000 million euros), which means that, with the 8,600 employees, according to data from the end of 2019, placed his productivity on 1.3 million dollars (1,09 billion euros) per worker.
The escalation is palpable when compared to the first half of 2018, when it earned $ 1.04 million per employee; or with the first half of 2015, then it entered $ 3,217 million with a workforce of 3,700 workers, and its productivity was $ 869,460 per employee. The evolution from June 2015 to June 2020 is 59%, the largest progression of the six major U.S. technology.
Netflix has a particular corporate culture. Since 2009 he has introduced concepts such as unlimited holidays or flexible processes, but it also has some controversial aspects such as so —called permanence tests— in which it assesses whether or not an employee should continue in the company —or autopsies—in which it explains why an employee of the company has been fired -. Some have defined Netflix's atmosphere as "a pressure cooker" for the extreme and radical transparency it imposes on its employees.
"We ask people to do what they think is best for the company. We don't give them any more criteria than that. Some people are frustrated, probably not the right people for Netflix, but other people understand that rule and think so all the time," Reed Hastings explained in an interview with the Masters of Scale podcast, led by LinkedIn co-founder Rein Hoffman.
If Netflix is the big winner for the positive evolution of its productivity per employee within the six major U.S. technologies (Netflix, Apple, Alphabet-Google, Facebook, Amazon, Twitter and Microsoft), Apple stars the opposite effect, as it has lost first place and its productivity has suffered 12% since 2015.
Netflix incredible unstoppable productivity rise revealed
Despite the recipes of its CEO, Tim Cook, who starts the day at 3.45 am to do exercises and check emails as a method of productivity, the Apple company has not improved in this section since 2015.
The creators of the iPhone and the iPad billed 117.998 million dollars (99.614 million euros) in the sum of the first and the second quarter —that Apple are the second and the third, because its fiscal year ends in September— which means that, among its 137.000 employees, according to the latest data available, each one of its workers generated 861.300 dollars (727.142 euros) in the first half.
This is 12% less compared to the same period of 2015, when the company had an income per employee of 978,300 dollars, since it invoiced 107,615 million and had about 110,000 employees on staff.
Behind Netflix and Apple, the companies that get the most revenue per employee are Facebook and Alphabet (Google), both around $ 600,000 per employee and have remained stable over the last five years, although their paths have been different.
In the case of Facebook, this semester billed 36.423 million dollars ($30.700 million euros) and has around 52.500 employees according to the latest data, their productivity is almost the same as in 2015 (around 690.000 dollars of income per worker), but has suffered a resounding setback, after having been between 2017 and 2019 surpassing the $ 800,000 of revenue per employee.
Alphabet's trajectory is much more linear. Between January and June it invoiced about 79,456 million dollars (67,068 million euros) and, with the 127,498 workers with which it has, its productivity was about 623,000 dollars per employee, practically in line with what it obtained in 2015, although in 2018 it came to be around 716,000 dollars per worker, with a curve less sharp than that of the company of Mark Zuckerberg
Along with Apple, the only case of loss of productivity in the last five years is that of Amazon, which although it has improved during this last quarter, coinciding precisely with the rise of e-commerce by the coronavirus pandemic, has lost 25% productivity per employee since 2015. In gross terms, it is clearly the worst company.
In this semester, the giant of e-commerce turnover 164.364 million dollars (138.738 million euros), a record figure in its history, but the large number of employees required in their logistic operations (876.800, according to the latest data available), they do generate 187.460 dollars per worker, 25% lower than the 250.600 dollars that you made in the first half of 2015, when billed 45.900 usd with 183.100 workers.
End of Netflix incredible unstoppable productivity rise revealed
Andalusia, Cantabria, Aragon and Extremadura are already the first communities to have operational RadarCOVID, the Spanish contact tracking app
The government announced Thursday that RadarCOVID, the app that will be used to help track covid-19 infections, will be available in several autonomous communities on an imminent basis.
Andalusia, Cantabria, Aragon and Extremadura are the first communities to have the app already active although in the testing phase, as detailed in a statement by the Ministry of Health.
The decision was approved this Wednesday in the Interterritorial Council of the National Health System, in which an agreement was reached for the autonomies to complete a process by which this technology will be integrated into their respective health systems.
The Spanish contact tracking app can be downloaded on Android phones and iPhone since the beginning of July, when a testing phase began in La Gomera, in the Canary Islands.
At the end of July, the pilot phase was completed with good results in the opinion of the executive, and it was announced that the JPA would be expanded to the national level.
The Secretary of State for digitalization and Artificial Intelligence under the Ministry of Economic Affairs has commissioned the development of this app. What was needed now was to integrate it into the autonomous communities.
This is because the app is able to track contacts. Phones using the app communicate with each other by sending Bluetooth 'fireworks' to nearby phones. In this way, the app is able to make a history of mobile —people— with whom you have crossed the street.
What was missing was the possibility of an infected person communicating their positive for COVID-19. To do this, you need a code. This Code must be delivered by the health systems of the autonomous communities.
Although the app was already working and tracking contacts, it was operating so far without any real positives on the platform.
Andalusia, Cantabria, Aragon and Extremadura will now begin to report their positive cases of COVID - 19 through the platform. To do so or not ultimately depends on the person who has been infected.
The mechanics are that if a person comes up who has been infected with coronavirus, the app will warn about it on the phones of all the people with whom the confirmed case had a risky contact-more than 15 minutes less than a meter and a half away -.
In addition, people who receive notification that they have been exposed to a confirmed case of COVID-19 will not know at any time who they are referring to; since the app is very guarantor of users ' privacy.
The advantage is that with this information, exposed persons will be able to take prudential measures, hold voluntary quarantine and notify health services.
Another problem facing the app is that the technology is blind. Notify COVID-19 of exposures to close contacts that are less than a meter and a half away. However, if distance and mask were kept, contact did not necessarily have to be risky.
The government warned that the app, RadarCOVID, would be available throughout the national territory by September 15 as the deadline. However, he also acknowledged that in the "most critical" autonomies the app could be launched earlier.
Although it was shuffled that the application could arrive on August 10 in the communities where the most recollections of COVID-19 were being recorded, it was finally not until August 20 when this extreme became known.
The mayor of Malaga himself, Francisco de la Torre, warned last Wednesday that the app would be available on Monday 24 in the provinces of Malaga and Almeria. The government's statement this Thursday extends this information to that will be for four communities and is already really operational.
However, other autonomies such as Madrid and Catalonia, where there are also significant rebounds, have not yet reached any agreement with the Ministry of Health.
The Ministry of Health details in a statement that at the moment "the other communities have expressed their interest in adopting the tool and are carrying out the necessary technical work".
The RadarCOVID app has already been downloaded nearly two million times, according to the government.