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tonyedgecombetoday at 12:32 PM1 replyview on HN

Presumably you aren’t paying 52 weeks of severance to someone you hired three months ago.


Replies

infectotoday at 12:56 PM

That’s right but depending on country there may be other legal requirements necessary so the costs tend to add up quickly and on average when you peak behind the curtains at an EU company you see it’s often easier to retain low performing members than it is to go through legal expenses and the notice period. You tend to be more thoughtful if you want to add HC on that region and avoid restructuring the company.

Maybe it works out on average but there are distinct pros and cons. On the net you get less job creation, less innovation and on the flip employees have more protection from being fired.