The common argument against relying on natural turnover rate is that the most competent workers are also those who are the most likely to leave because it is easier for them to find a new/better job. So if a company just freezes hiring instead of doing layoffs it will experience a reduction in the competence of their workers.
I don't know if this is empirically true or not, I haven't seen any statistics. But I don't see any obvious logical errors in this reasoning.
I don't know if this is empirically true or not, I haven't seen any statistics. But I don't see any obvious logical errors in this reasoning.