That's true. It's also bad PR for the company. Disgruntled former employees will not recommend anyone they know to work at such companies for these reasons.

That's true. It's also bad PR for the company. Disgruntled former employees will not recommend anyone they know to work at such companies for these reasons. That might not seem to be such a big deal (as compared to an external, traditional PR problem), but if your best employees are the ones leaving on bad terms, then most likely the people they know are above average too. Now the company will have a harder time recruiting great people.