Why are so many bad employees able to retain their jobs?

Many reasons but primarily because the employer can be sued if they don't have an IRON CLAD and FULLY DOCUMENTED reason for dismissing the employee.

If the employee is a "minority", be it black or gay or disabled, even if they are stealing from the company they can sue... "It's DISCRIMINATION!" they will claim and some lawyer will take the case...

If the employee is a "minority" and the company must maintain a "Quota" of women, disabled, races, etc. and it is easier just to keep the jacka*s than to have to worry about finding a "Replacement" to keep the quota... Besides, they'll probably sue.

If the City of Chicago, County of Cook, or the Chicago Branches of the US Postal Service were to fire their incompetent employees, only 1 in 10 "African Americans" would still be employeed at the end of the day. Unfortunately, it is better for the PR to keep the ranks full of Blacks, even if they can't or refuse to do their jobs, than to fire them, make the system efficient by making sure that workers WORK, and have to deal with the people screaming about "Racism" because they now hire based on Qualifications, not skin color or gender.

Then you have to take into consideration the amount of money that must be spent to replace ANY employee... Between finding a qualified applicant, training, efficiency issues as the person settles in... It ends up costing thousands of dollars for a company to replace an employee so sometimes it is just easier to put up with the bullshit than to fire them and try to find someone qualified and with a good attitude to replace them.

by being hot

Unfortunately, it's usually because they are kissing someone's ***.

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It seems ridiculous. It happens a lot where I am from (Alaska). I believe it is due to their stance to the people around them. If the people do not want to work and have basically ONE person do the workforce of all, then they believe that is better.. It is prolonging work to ensure they get pay without doing anything. If that makes sense. Haha, sorry I just dislike all of those who slack and get somewhere from doing nothing.