Title: From The Silicon Valley

Loyalty is a constant refrain in the give and take of hiring and being hired. No one admits to believing in it, but when push comes to shove, it is expected. The chance to belong is a very real motivator for most people. Thus, I was surprised recently by a contract I saw. It outlines the operating conditions for contractors working at a company with a terrific reputation. It clearly separates those working at the company into two groups: employees and contractors. As expected, employees get all the benefits of employment. What is surprising was the effort made to differentiate the non-employees. It extends from trivial matters to gross strategic mistakes.

First, let me point out that both direct and temporary hires work on the same projects and usually put in comparable hours. For all intents and purposes, their work load is similar and how their performance is judged is the same. The standards seem fair and consistent for both.

However, a two-tier system exists. As a trivial example, temporary employees are not allowed to use the recreational facilities. At a serious strategic level, temporary workers are not considered part of the team and are not allowed to participate in team meetings, even though they may be the lead players or majority of the teams! This makes the concept of a team a hollow parody and destroys the intent of team building which is loyalty - that which carries us together through good times and bad, and smoothes rough waters.

I have no problem with differentiating between direct and temporary workers based on pay versus benefits. That is a choice for individuals to make. But to differentiate team members on the basis of their hiring status is self-defeating to both parties. There is no incentive to give that extra 10% on the part of the temporary worker and the company can expect no loyalty or shared vision when it needs it.

I recognise that tax and employment laws make life more complicated, but it seems that we have allowed non-essential factors to destroy mutually beneficial goals. As a lawyer friend of mine once said, "Never let a lawyer make your business decisions for you."