This problem could be solved with a co-op structure even within a free market. If ten workers in a co op produce $100 bucks of extra money, they all get voting power over ten buck, and as long as any new hires can carry their weight so everyone still gets ten bucks surplus to command, they will hire them if you follow the game theory incentives. Once companies get big enough to have diminishing returns, like a new employee could only produce 5 bucks of surplus, then hiring that person would make everyone have a smaller piece of the pie (adding him to our first ten means the share drops to 105/11 or 9.5 dollars.) If the pie(surplus) all goes to one person they can keep adding workers until the worker doesn’t produce any surplus over the cost, bloating the departments. Because of this co ops tend to expand to peak productivity, (surplus per worker), rather that peak output (produce as much as we can until it becomes unprofitable to produce)

That happens all the time. I went through several government contracts where a company would come and under bid the current contract by a significant amount, win the bid, offer the current contractors 3/4 of what they were being paid and fill in the rest with new hires. There is no continuity between contracts so unless a bunch of the old contractors took a pay cut to stay on they would come in and start from scratch with all new processes and procedures and absolutely slow down productivity for all those they were supposed to be providing support.