Sounds like some managers are just bad at... managing. If a company is not providing benefits to it's employees, it would benefit them to over-hire. If there are actual benefits/costs to hiring, I understand why they would keep employee numbers down. In this model of over-hiriing, people would be trying to get more hours, and people who have to miss work or want to miss work have other employees happy to fill those hours. All that you have to have is a manager who's capable of managing people, quickly and efficiently.