Dismiss outstanding employees and recruit new employees. Why do some companies do this?

Sometimes, for some reasons, enterprises will take the initiative to fire some employees. There are two ways to dismiss, one is to persuade or dismiss during the contract period, and the other is not to renew the contract when it expires. No matter what kind of dismissal, it reveals an obvious signal: the company doesn't want to hire this employee any more. The imagination, creativity and energy of the old employees can't be compared with those of the newly graduated college students, and the skills needed for those basic positions can only be mastered in a few months.

On the one hand, continuous recruitment can show that enterprises are still active and not on the verge of bankruptcy, which can cause a false prosperity phenomenon; On the other hand, the more the crisis, the more serious the internal contradictions, and it is difficult to rely on old employees to tide over the crisis. Sometimes when a dead horse is a living horse doctor, there may be surprises to find new people. Many old employees have higher salaries, but they do things with low value, which invisibly increases the cost of the company. Imagine that the salary of an old employee who has worked for more than ten years is definitely much higher than that of a fledgling college student, but the old employee cannot create higher or even equal value. In this case, resources are wasted.

People's physical strength and energy will continue to decline with age, and work efficiency will also decline with age, which is unacceptable to enterprises that pursue profit maximization. They will also choose to hire new employees one after another to replace old employees in order to improve production efficiency. Some companies will implement the performance management method of the bottom elimination system to improve the work efficiency of employees. Let's not evaluate this performance management method first. If you use the last selection, it will be easy to see that people often leave their jobs and join the company.

Old employees have been working for almost eight years, and some enterprises will be afraid to sign open-ended labor contracts for them, which means they are supporting the elderly in enterprises. Therefore, before the length of service is less than eight years, enterprises begin to recruit people frequently and change the system frequently, which makes the old employees overworked, so it is possible to leave their jobs automatically.