For 1 it's the Pareto distribution. I've seen it normal that 80% of the people do 20% of the work, and the top 20% do 80% of it. He's saying you'll keep the lower 80%.
I see that as a total misapplication then, as it actually assumes way worse - that 100% of the people would not like this work condition described, which is evidently false as OP has a company of people working in that. The question still remains though: what percentage of people would choose to stay / join this environment?