This note is in response to Trading Pay for Benefits.

This goes all the way back to Maslow.

When people -- not "talents" or "resources" -- but PEOPLE are nervous about their status and stability and where their next paycheck is coming from, they don't do their best work. They spend time hedging their bets. They spend time developing their networks. 

And in an environment a la GE's infamous "10-80-10" rule, they start to see their closest competitors being their co-workers, not focusing on the other BUSINESS that is a competitor to their EMPLOYER.

This is not to say that layoffs never happen, or people are never fired. But in an environment where peoples' livelihoods and ability to maintain basics -- food, clothing, home, etc. -- are continually perceived to be at risk, companies will NEVER have their employees' full attention or commitment. 

Ultimately, loyalty goes both ways, and starts from the employer to employee, NOT the other way around.

David Hunt, PE