It already happens, it's called contracting. And the results are terrible because no one gives a fuck about quality at a job the might not have in 3 months.
Small caveat - I'd say contract-to-hire is what many places are implementing if they actually want the headcount instead of just a budget expenditure. The problem is that you end up with worse candidates because most people who are really good don't want the uncertainty and stigma of a contract position if they can get a full-time one elsewhere.
In the UK, specifically in London, you'll be a lot better off contracting and as a consequence when you look for senior engineers you'll have a tough time finding someone perm as most senior people who know their worth will be contracting/consulting.
Fair point, but in my experience the extra money is basically a wash when you factor in healthcare costs (I'm in the US), self-employment taxes, lack of employer-matched 401k, unpaid vacation, and the realistic utilization rate you can expect averaged out over several years. If you can keep your rate and utilization up you can definitely do better contracting, but a lot of people prefer the perm setup.
The pension contributions and paid vacation is nice but it doesn't make up for the difference in income. Also contracting means that you can essentially decide the holiday/income ratio yourself.
One of the main benefits for me is that I usually get bored/sick of working at particular companies after an extended duration (the work can get repetitive). Contracting means you can job hop, gain a wider variety of experience and take extended holidays without stigma.
I've found the extra money to be an illusion when you consider public holidays, sick days, holidays etc.
I've found it to be a net negative when you consider time between contracts. Contracting really needs to be about double your salary to make it worth it.
nah, that sucks. What I'm talking about is how Netflix does it (or at least, how Ive been told they do it).
You start working there for a premium salary and you're expected to deliver accordingly. If you don't, you get a generous severance package and politely ask to leave. And you know about that when you get hired.