Earlier quoted context omitted.
Ok but then contractors have the freedom to work whatever hours they want, not show up to the office, and subcontract out their work - right? If so that might be more appealing than being an employee
Not in practice, because they use a hiring entity to dictate the terms. You're expected to show up on a schedule, do the work etc. much like a FTE, but you're not an FTE. I think some folks have this illusion of software contractors that this is somehow common, it really isn't. The norm is you-are-almost-but-not-quite an employee type work environment, and thats at the better places. I've worked at a place where cont…
But no, companies like Google want to have their cake and eat it too: they want a class of workers where they can require of them more or less the exact same things that they require of their employees (and much more easily fire them), but can give them a lot less, and treat them like a second class.
That's entirely Google's choice. It does not have to be that way. But they've decided to create this two-class system for their own benefit, not for anyone else's.
Also consider that these people are probably often not contractors in the legal sense. They're likely W-2 employees of some sort of staffing agency, who are then placed at Google. Google pays the staffing agency, the staffing agency pays the "contractor" a salary (significantly less than what Google pays the staffing agency), and all is fine... legally, anyway.