First, employees will want to belong, and there will be less time and effort wasted by moaning and complaining. Second, they will work harder to make sure their boss sees how well they are doing. And, word gets out to other companies that the less desireables cannot get hired easily because of "tough pre-screening measures" and hiring standards.
In many business communities the word on the street reverberates like Tom-Tom's when a company is known to be an easy mark. Not recycling the losers, and making the temporary agencies do some due diligence (criminal, credit, MVR checks), is the first step in stopping the marginal unproductive employees from getting on your payroll.
Once you raise the bar to make it harder to get employed at your firm, its increases the pride, esprit de corps, and morale of everyone concerned.
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