Netscape's Work Culture

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Themes: Organizational Culture
Period : 1994-2000
Organization : Netscape
Pub Date : 2001
Countries : USA
Industry : Information Technology

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Case Code : HROB0013
Case Length : 13 Pages
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Employees were offered a wide range of training options and an annual tuition reimbursement of US $6,000. This opportunity to expand their skills on the job was valued by all employees. The company also helped employees learn about the functioning of other departments. There were quarterly 'all-hands' meetings in which senior managers of different departments gave presentations on their strategies. These efforts created a sense of community among employees. An employee remarked, "They really try to keep us informed so we feel like we are involved with the whole company."

Netscape offered a wide range of on-campus services to its employees. Apart from the standard package of health and vision benefits, Netscape also offered a 'Total Health and Productivity' plan. The on-campus services program was introduced through an agreement with a San Francisco based service provider, LesConcierges.¹⁵ Under the program, employees were able to get some of their routine work done like dry cleaning, paying bills, getting the oil changed in their automobiles, etc. They could also consult a dentist or even have a massage. The program also helped employees to plan for holidays as well as order gifts. Sick children of employees were also looked after at a child-care facility near the campus for US $10 a day.

Since employees worked for long hours, Netscape gave them paid vacations. Employees were given a six week paid sabbatical after the completion of four years of full-time employment. Incentives were given to employees at all levels, not just senior employees. Employees earned bonuses on the basis of individual or group performance. Senior executives were entitled to bonuses in the range of 1-30% of their annual salaries. There was also an annual company-wide bonus plan based on revenues per employee and customer satisfaction figures. Employees also qualified for bonuses based on their manager's discretion, for specific projects/assignments.

Netscape developed innovative methods of reducing employee stress and preventing them from shifting to rival companies. The company was one of the pioneers in introducing the 'canines-in-the-cubicle' policy, which allowed employees to bring their dogs to work. The company believed that this policy increased productivity by reducing stress. The company also felt that pets were good icebreakers for shy workers, and that they forced employees to take breaks from their work.

Another element of Netscape's success was its quick recruitment process. The company's employees strength had increased from 2 to 330 in just 15 months between April 1994 and July 1995. The company attracted promising student's fresh out of college by offering them a lot of incentives including beach parties, free clothes, signing-on bonuses and free computers. Once they joined, to keep up morale, employees were offered stock options, which translated into huge profits when the company performed well. Netscape launched an aggressive recruitment campaign: it went to some of the most popular campuses like UC Berkley, MIT, Stanford, Cornell, Michigan, and Carnegie Mellon in the US.

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15] LesConcierges, founded in 1987, offered a comprehensive range of business and personal services to corporations as a work/life benefit for employees.