The overall flaw in this system is that it assumes that there are always people worth firing. But some companies - and let's think of smaller start ups as an ex

The overall flaw in this system is that it assumes that there are always people worth firing. But some companies - and let's think of smaller start ups as an example - try to hire really well, and there are some shops that are loaded with talented people. Stacking them and firing the 'worst' performers because of a metric is basically just cutting talent. My take is that if a company thinks they have 10% of people on staff worth firing every year, fix the hiring process - that's the problem.