Structural comparison: In the Netherlands, employees are hired for specific terms. Usually this results in employment contracts for 6-12 months, followed by y

Structural comparison: In the Netherlands, employees are hired for specific terms. Usually this results in employment contracts for 6-12 months, followed by yearly renewals. This is a bit one-sided: The employer can only sever the contract if there is a very good reason, but the employee can leave with 30 days notice. After 3 years employees can be offered a 'permanent' contract... "we won't fire you unless there is a huge problem and/or we will negotiate a severance". This 'loyalty' seems like a burden to employers from my American perspective. After living here, I've noticed a few things about Dutch employee loyalty. * Removing the fear of possible instant dismissal seems to orient employees toward long term improvement instead of maintaining status-quo. * Defined intervals of contract negotiation do the same, they give both parties a goal. * Employees want that 'permanent' contract, it gives them even more stability. Once obtained, employees are hesitant to give up their luxurious position (true loyalty). My initial fear of a productivity drop doesn't seem to be valid, if I look at the 'perms' around me. * Children do start to appear around this time, though. Good for loyalty, bad for midnight coding, good for efficiency. I don't know how this system would play out back in the valley, but I feel that it beats the anarchy of at-will.