One thing I've noticed too is that when they try to transition from a well cared for workforce to one in which the company essentially says "Work hard, but be ready to get fired at any moment" suddenly a lot of costs start adding up for the company. Suddenly people who might have clocked out for lunch before now start 'working' at their desk. People who would even buy supplies from time to time in order to keep working would just sit idly doing nothing if they didn't have everything they needed waiting on the company to provide everything. Someone who might not have religiously used all of their sick days now uses up every paid sick day available because their throat tickles. Oh and all of those employees you used to classify as independent contractors, a few of them just filed paperwork asking the IRS for guidance on their status. The company now owes 5 years of back taxes on 15% of their payroll. Goodbye last 5 years of profits.
When you become a stickler for rules as an employer you'll suddenly discover that your employees are also really good at finding rules that benefit them.