I have worked or consulted for a few that went too far the other way and it wasn't that great either.
If the company is too loyal, then it can create a corrosive environment because good employees sometimes leave for reasons unrelated to the employee-business relationship, family, retirement, health, etc. The bad ones seem to never leave, though.
Honestly, I would rather work somewhere that is willing to get rid of useless and/or corrosive employees than somewhere that refuses to do so out of misguided loyalty.
This is sooo true. Its very easy for bad apples to abuse systems put in place to give employees stability...
Its a strange problem I guess. Systems are put in place to keep good employees around but are abused by bad ones. Then those systems are thrown out and everyone suffers.
Honestly, I would rather work somewhere that is willing to get rid of useless and/or corrosive employees than somewhere that refuses to do so out of misguided loyalty.