Managers deliberately keep non performing employees to use them in a layoff scenario.

Thought I will make this revelation. Smart Managers deliberately continue to keep ordinary people in their team and these people are given a decent hike too so that they can stay in the company until there is a layoff scenario. This generally happens with product based companies that undergo periodic layoffs regardless of economic slowdown.

So if you are an ordinary employee & continue to get encouraging feedback from your manager plus a decent hike every year, beware! This might be a smart-trap laid by your manager.