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Why Startups Are Making the Expensive Switch to Traditional Employment

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Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#2
It doesn't bother me one way or the other how workers get hired, as temps, contractors or permanents. As a worker, I see advantages and disadvantages in all.

Never the less, here it's stated that companies are taking contractors or independents internally as employees in order to have more control over service and presentation. That's something to strive for. As a consumer of good and services, one tends to prefer the one providing better services.

Yet, Japan, which is very service oriented and super customer focused to the extreme, has seen its temp workforce take over. So, it does not seem, in Japan at least that you need permanent employees to get exceptional service. Something does not jibe.

Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#3
This is kind of interesting. Seems like a lot of trade-offs on both sides that are both good and bad for the person and the company.

Makes sense for companies to want to be in the position to say certain tasks must be done while controlling quality. Makes sense for people to want benefits and steady work/pay.

Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#4
I feel like Silicon Valley tends to think they can save money by skipping out on whatever big businesses have always done, until they find out later that it was a bad idea, and businesses did things that way for a reason. It's what happens, I think, when 20-somethings think they know what they're doing over experienced people with 20-something years of experience in the business world.

Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#5

I feel like Silicon Valley tends to think they can save money by skipping out on whatever big businesses have always done, until they find out later that it was a bad idea, and businesses did things that way for a reason. It's what happens, I think, when 20-somethings think they know what they're doing over experienced people with 20-something years of experience in the business world.

There's something to be said for experimenting. Some experiments turn out to be a bad idea; other experiments end up making sense.

Always good to figure out which practices have a sensible reason, and which are just "the way we do things".

Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#6

I feel like Silicon Valley tends to think they can save money by skipping out on whatever big businesses have always done, until they find out later that it was a bad idea, and businesses did things that way for a reason. It's what happens, I think, when 20-somethings think they know what they're doing over experienced people with 20-something years of experience in the business world.

I would argue that both type of thinking have their places. Some assumptions are no longer valid because of how the society has changed. There are innovations like internet, mobile etc. in the last 15 or so years that have had high impact on society. It is really hard to get the correct rationale behind practices, which can then be evaluated. Startups help in trying stuff and innovate. On the other hand, economic stability that allows these startups to actually spend this cash comes due to these established practices.

Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#7
post #2

It doesn't bother me one way or the other how workers get hired, as temps, contractors or permanents. As a worker, I see advantages and disadvantages in all. Never the less, here it's stated that companies are taking contractors or independents internally as employees in order to have more control over service and presentation. That's something to strive for. As a consumer of good and services, one tends to prefer th…

Working cultures differ wildly; not just nationally, but intranationally. Lessons learned in one environment are not necessarily applicable in others.

Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#8

I feel like Silicon Valley tends to think they can save money by skipping out on whatever big businesses have always done, until they find out later that it was a bad idea, and businesses did things that way for a reason. It's what happens, I think, when 20-somethings think they know what they're doing over experienced people with 20-something years of experience in the business world.

You have to imagine that those with 20 years of experience in the business world inherited their practices from the people above them. This means people are prone to getting trapped in a certain mindset and a way of doing things, because that is just "the way it has always been done". Whether or not SV is improving on these traditional practices is certainly up for debate, but you can't fault them for breaking from the mold and trying something different. That is where innovation comes from.

Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#9
"Under the contractor model, Lee says, the leaders at Luxe hadn’t been able to schedule workers for unpopular hours like late nights on Friday and Saturday; they could only bribe them to come online with higher rates of pay, as Uber does with surge pricing."

That's not bribery; that's simple supply and demand.

Re: Why Startups Are Making the Expensive Switch to Traditional Employment

#10

I feel like Silicon Valley tends to think they can save money by skipping out on whatever big businesses have always done, until they find out later that it was a bad idea, and businesses did things that way for a reason. It's what happens, I think, when 20-somethings think they know what they're doing over experienced people with 20-something years of experience in the business world.

There's something to be said for experimenting. Some experiments turn out to be a bad idea; other experiments end up making sense. Always good to figure out which practices have a sensible reason, and which are just "the way we do things".

I suppose that's true.
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