Their actions are recorded. You have full view if they are failing to do their job, and when they fail to do their job it is on you as their employer to bring the consequences. What did the people who hired John Fetterman do to stop his unacceptable behaviour? Nothing, right? That's the problem. Employees are not magical beings. They are simple, imperfect humans that need constant management. But there is this strange idea that voting is sufficient to act as the management layer. That is not how it works. Voting is only for selecting the employee you want to hire. You still have the be the employer after they are hired.

It is not fundamentally broken. The model proves to work perfectly fine in other contexts regularly. The trouble is that you, along with a lot of other people, are looking for magic so that you don't have to get your hands dirty. The harsh reality is that magic doesn't exist, I'm afraid.