A friend of mine is a director at Netflix. He was explaining to me that compensation vs retention are different conversations there. They want to pay people m

A friend of mine is a director at Netflix. He was explaining to me that compensation vs retention are different conversations there. They want to pay people market+ for A players, but if you're not at the level expected, you'll be let go if you don't get (back) to that level. So a conversation shouldn't (but sometimes does) go from "we shouldn't give her a $25k raise, {s}he hasn't been doing well enough" to firing her for not improving. On the other hand, no one is supposed to be confused about where {s}he stands with respect to performance and improvement.