Jack Welch was the former head of General Electric and saw the company through a tremendous period of growth. I read his autobiography a number of years ago, and one of the things that he put in place was a system where the bottom 10-20% of employees were let go every year. Even if the company was in a growth mode, he felt that having the people who were performing the least were not suited for their jobs.
It sounds pretty harsh, and sounds like a good way to keep the HR department busy, if nothing else.
Lately, I’ve been thinking that there should be some sort of process that could be applied to any company to make sure that the best people are kept and the worst people aren’t.