While this is convenient and cheaper for businesses, it also removes financial incentives in place to help businesses succeed. This seems to be short term advan

While this is convenient and cheaper for businesses, it also removes financial incentives in place to help businesses succeed. This seems to be short term advantageous but long term destructive. Many a good business idea has come from someone who felt they had something to gain from the company succeeding. Contractors have incentive to put up and shut up, after all, argue with the boss and you are replaced. It also gives core business competency to contractors, who can turn around and give that knowledge or experience to competitors, or even open up shop themselves.