I don't find that perverse. Netflix is confident that they offer both top of scale pay, and top of scale satisfaction. And they want their employees to be happy

I don't find that perverse. Netflix is confident that they offer both top of scale pay, and top of scale satisfaction. And they want their employees to be happy. That kind of employee is maximally productive. They actively want to get rid of less than dedicated, top performers. Yes, if you are in a weak position as employer, not confident of your ability to retain employees, it is perverse. Or if as an employer, you don't judge quality of employee so much as long as you get SOME output from them. Your argument amounts to: unsatisfied employees shudder might leave, or even worse be encouraged to leave by this policy. I believe that Netflix actually desires that. Unsatisfied employees are not maximally productive employees. We can see this in their recently updated culture deck -- "if you don't like it here, don't let the door hit you on the way out." As well, the mere projection of such power (encouragement to seek outside offers) is enough to keep most employees satisfied that their employer is paying them, and every one around them, fairly. Without them having to act on it.