This kind of happens in America today. I've worked for a Fortune 500 company that had a lot of trouble hiring good engineers on a full time basis, as the powers

This kind of happens in America today. I've worked for a Fortune 500 company that had a lot of trouble hiring good engineers on a full time basis, as the powers that be had decided that they shouldn't compare developer salaries to the market as large, but just their specific industry, so their idea of average market rate was off by tens of thousands of dollars. When dealing with capital projects and contractors, however, they had no problems whatsoever giving people on very long contracts hourly rates that weren't just good for their industry, but would have been good for Northern California. I worked for 3 years straight, 40 hours a week, where I was making three times the take-home pay than coworkers with the same responsibilities. And this was after accounting for all taxes, health care, and giving myself more days off than the full time workers did. Management seemed fine with that arrangement too. Said coworker's direct manager tried to talk to the CTO about the situation. The argument was that if they were happy paying people like me really well, and that they were losing their best FTEs to other companies in a regular basis, that maybe they should pay their best workers a competitive way, instead of ending up with FTEs that just were not competent enough to be hired at regular rates somewhere else. The answer was "If our best FTEs are getting poached by west coast companies, this means that we are good at training" Remember the story about how some government agencies in charge of building things are getting hollowed out, losing all expertise, leading to very slow, very expensive projects being mostly handled by consultants? It's how it works in software for a big percentage of private sector firms that were already big in the 1970s.