Well, a contractor is a very different thing. They don't have the same rights and we can't offer them the same benefits as we do to our employees. We don't want to have second class citizens on our team.
That said, we already do work with some contractors outside of US. But the above applies and we are trying to find a way to incorporate in their countries so we can equalize the compensations (salary, health benefits, stock options, ...).
Would we not care about our people, this would be a no brainer.
Netflix doesn't have remote workers. Yes, they compensate for every benefit in cash. Because they have abundance of it.
There is a reason why startups give equity and lower salaries. They can't afford to compete with incumbents. Plus we want all our employees to be and feel equal. That means to share all the upsides of the company through options grants, have great healthcare, time off, ...
Option grants - they are not the same for employees and contractors. And there are huge differences between them for the receivers [0]
Healthcare - companies have different options than individuals. Different countries offer different quality. And many will opt-out from expensive plans that have great coverage in favor of extra cash [1]. However, when things happen, they don't have the proper coverage and end up in situations that are very hard to recover from (we been there).
Time off - this is again not the same thing. PTO has many important protections for employees and has built in rules in the law. Contractor has no right for any of it.
and etc.
Your suggestions are generally valid, but we prefer our employees to be at equal standing with the same rights and same benefits.
That said, we already do work with some contractors outside of US. But the above applies and we are trying to find a way to incorporate in their countries so we can equalize the compensations (salary, health benefits, stock options, ...).
Would we not care about our people, this would be a no brainer.