[ori_b]

Note that the corrections you propose still have nothing to do with the value that the employee produces. They just adjust the replacement cost to something more realistic.

It's still about minimizing expenditure to bring in a certain amount of profit.

[digikata]

If, because of the replacement cost model, you don't spend time and some effort to get and keep well integrated employees, the business misses out on deeper value the employees could bring. Further, those deep-value employees can handle more issues, freeing higher level management to focus on bigger, higher value issues. I think that has a lot of relevance, but then I think a lot of companies miss out on expanding value when they're focused on squeezing costs.