Why do companies not reward loyalty but rather layoff seasoned worker due to higher pay from yrs of great work

Answer 1

Because they are short sighted and greedy. They don't value their greatest asset, namely their staff. Jules, Australia.

Answer 2

Because most companies that are publicly traded must preserve and improve shareholder value. A company can do this by increasing earnings. However, in todays markets companies cannot afford to risk losing customers by increasing prices too much. So the only other way to increase earnings is to reduce expenses and unfortunately for most companies labor is the most expensive item and by laying people off you can reduce expenses and thereby increase shareholder value more dramatically. Unfortunately, it all comes down to the businesses' bottom line and the decisions to lay off people are made based on financial reasons not on loyalty etc. The company lays off more experienced people because by doing so they realize the greatest savings on slaries and benefit costs. They can hire a young person to do the same job for less and the cost of benefits etc are less as well.

Answer 3

For the same reason employees don't reward loyalty and leave companies that have invested in their training and development for a few dollars more.

Answer 4

Because what matters for companies now is making profit, not loyalty.

Answer 5

The Almighty Dollar $$$

Answer 6

think you answered your own question......you get paid too much, they want bottom line. loyalty means nothing, low costs mean everything

Answer 7

greed. the bottom line.

Answer 8

because it is more profitable.