Keeper Test
Keep only people you would actively fight to retain
- Difficulty
- Advanced
- Time to result
- ~ongoing to results
- Steps
- 6
- Confidence
- 99%
The Keeper Test turns a vague retention judgment into a counterfactual question: if this person were considering another firm, would the manager fight to keep them? A strong yes supports retention. If the honest response is that their departure would be acceptable, Hastings says the company should proactively offer generous severance and look for someone it may later fight to retain. The test is not limited to a binary moment; managers can revisit it quarterly and recognize degrees of enthusiasm. Its purpose is talent density, not punishment. Hastings emphasizes that people may be trying hard and have done nothing wrong, so exits should be direct, thoughtful, supportive, and backed by a financial parachute.
Origin
Hastings named the test after catching a large fish as a child and hearing his father say, “That's a keeper, Reed.”
Core principles
- 01Judge retention by active desire, not passive tolerance
- 02Build a team filled with people worth fighting to keep
- 03Pair direct exits with generous severance
- 04Treat departures with respect
- 05Review the question repeatedly
How to run it
- 1
Run the counterfactual
Imagine the person says they are leaving for another firm. Ask whether you would actively try to change their mind.
Pro tip Use the emotional clarity of a hypothetical resignation to cut through passive acceptance.
- 2
Gauge the strength
Distinguish an emphatic desire to retain the person from a mild willingness and from indifference.
Watch out Do not turn every answer short of maximum enthusiasm into an automatic exit.
- 3
Act on indifference
If you would be fine with the person leaving, address the mismatch proactively rather than preserving adequate performance by default.
Watch out Do not hide behind a prolonged performance process merely because the conversation is difficult.
- 4
Provide a parachute
Use a generous severance package so a hard performance decision does not imply wrongdoing and the person can land on their feet.
Pro tip Adjust generosity to the standards of the country where the person works.
- 5
Search respectfully
Let the person go directly and supportively, then conduct an open search for someone the organization may fight to keep.
Watch out Hiding a replacement search undermines respectful treatment.
- 6
Repeat the review
Revisit the test periodically, such as once a quarter, rather than waiting for a resignation or crisis.
In the wild
A manager imagines a team member announcing a move to another firm and realizes the honest reaction would be disappointment but acceptance, not an effort to keep them. Under Hastings's test, the manager should not preserve that passive fit indefinitely.
→ The employee receives generous severance and the company searches openly for someone it may actively fight to retain.
Common mistakes
Confusing effort with role fit
A person can try hard and do nothing wrong while still not be someone the organization would fight to keep in that role.
Using the test without a parachute
Demanding standards without generous severance abandons the supportive half of Hastings's model.
Running a hidden replacement search
Hastings favors letting the person go respectfully before opening the search.
Is it for you?
Best for
Organizations explicitly designed as high-performance teams rather than employment families.
Not ideal for
Organizations unwilling or unable to pair demanding performance standards with directness, respect, and meaningful severance.
From the transcript
“So the test is if someone's thinking about quitting and you know, going to a different firm, would we try to change their mind to…”
“If we wouldn't fight to keep someone, we should proactively give them a generous severance package and try to find someone that we might well…”
“We wanted to let people go in the way that we would want to be let go if we're on the other side, okay?”
From the episode
#730: Reed Hastings, Co-Founder of Netflix — How to Cultivate High Performance, The Art of Farming for Dissent, Favorite Failures, and More
Reed Hastings