Tero Keski-ValkamaHire to fire is something large corporations have been doing for years. It comes down to objectives set to hiring managers to lay off a certain percentage of their team members every year. This is a highly misguided attempt at social darwinism, and it is one reason for the skyrocketing salaries in fields where this is done under conditions of competitive recruitment.
In conditions of competitive recruitment where there corporations need to compete on their choice candidates, most hiring transactions raise the salary level. This person will take a mortgage, and because of policies, will be laid off next year. Now they are back in the market with a heavy mortgage and a newly established market salary valuation.
In aggregate, employee churn makes the salaries rise. If large US companies were more rational with their attempts to supress wages, instead of illegal salary cartels and anti-poaching agreements they would do what Japan does and hire for life, almost never lay off people.
Employee churn increases the market salaries and in the small pools of specialists the effects are large. At the next step it goes to housing prices, because market abhors discretionary income, and creates homelessness and suboptimal housing conditions, and societies becoming more inequal.
These misguided attempts at social darwinism keep being reinvented by people all the time without them fully understanding the full repercussions. Large corporations have huge impacts in markets and economies and should probably actually have chiefs of economics to veto ill-conceived policies.
iced depresso
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