Why it always need to be only about productivity and not what is better for people? I get that company need to make money but surly productivity is not dropping 50% and company makes significantly less
How do you objectively measure productivity? Same question for "better for people".
The former can be somewhat measured by in-effective methods such as lines of code produced, revenue per emp in division, and other measures. The latter via surveys.
A company's direct objective it to turn a profit. Their indirect objective is might be to do that via retaining productive workers, or they may take a churn approach. Is it surprising they'd put more effort and weight on the former (prod) than the latter (better for people)?
What math function allows you to strike the correct balance between the 2 measures. For some employees you might make them maximally satisfied by paying them a lot to do nothing. For others they might want little to no money for socially rewarding work. It's not going to be the same for every person.
So in your mind what's the right optimization function for this equation?
Unless being a slacker becomes a protected class companies will hire the productive people, given a choice.