If bad people are aware that they’re bad, they’re strongly incentivized to not risk their livelihoods by voluntarily ending their employment.
If people are clinging to a job tightly even as working condition deteriorates, it’s an indicator that they don’t think they’ll fare well on the job market.
The disconnect has more to do with perception of their own value. Good people who underestimate themselves awill be inclined to stay. Bad people who know they’re bad will be more inclined to stay.
Bad people who think they’re good, and good people who know they’re good will be the most likely to leave.
So, the strategy of intentionally tanking your conditions to prune bad people actually only successfully prunes bad people who think they’re good.
On the other hand, you loose good people who know they’re good, entrenches the bad people who know they’re bad, and demoralized the shit out of good people who don’t realize they’re good.