When companies recruit human resources in excess and terminate them frequently, it triggers a hiring/firing cycle. Various internal factors like inadequate resource planning, poor performance, unethical behavior, etc., and external factors like contractual issues, immigration, market uncertainties, and more can influence it.
Frequent hiring/firing cycles can lower employee morale, adversely impact the bottom line, and cause unplanned attritions. It can eventually endanger a company’s reputation causing a failure to attract the right talent in the future and lost market opportunities.
