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Labor in the network society 181ment relationships; (2) shortened job tenures, reflected in high levels of jobturnover; and (3) mediated employment relationships, in which the directemployee–employer relationship is mediated by additional institutions andexternal pressures.Non-standard employment: This term generally refers to all employmentthat is not characterized by full-time, year-round employment for an indefiniteperiod, working for a single employer who largely directs and controls theconditions of employment (Carré et al., 2000; Kalleberg, 2000). This includestemporary, part-time, contract employment, and self-employment. While estimatesof non-standard employment vary, driven by ambiguities in definitionsand difficulties in measurement, it seems to be high in Silicon Valley andgrowing quite rapidly (Benner, 2003d). Between 1984 and 1998, for example,employment in temporary help agencies in the Valley grew by 174 percent,compared to 26 percent in total employment (see table 7.2). Between 1990 and1994, employment in temporary agencies actually increased by 30 percent,while overall employment declined.Outsourcing has expanded in the past twenty years, first in service activities,manufacturing, and now increasingly in high-end design (Davis, 2003).The numbers of independent contractors and self-employed people haveexpanded as well: approximately 15 percent of tax returns in the regionincluded some self-employment income in 1999 (JV: SVN, 2000). Dependingon how one deals with potential double-counting, and definitions, an estimated44–74 percent of all job growth in Santa Clara County between 1984 and 1998was accounted for in the growth of non-standard employment (Benner, 2002).Using a somewhat broader definition of non-standard employment, a surveyin 1999 estimated that a full 67 percent of workers in the state as a whole donot have “traditional employment” (Yelin and Trupin, 1999).Job turnover: As described above, there are high levels of job turnover inSilicon Valley, as employees move more frequently from firm to firm. A 2001survey of workers 25 years and older found a median job tenure of 30 months(about half the national median of 4.7 years), 3 with only 32 percent reportinghaving worked in their current job for at least five years, and only 20 percentlonger than ten years (Pastor et al., 2003). Perhaps more important thanincreased turnover, however, is the short-term nature of the implicit employmentcontract, with many firms and workers not even presuming they willhave a long-term relationship, even if workers are hired in “permanent” positions(Rousseau, 1995). There is widespread acceptance of people movingfrequently from company to company; loyalty is typically owed more toproject teams, particular technologies or industries, or the Valley as a whole,rather than to individual companies.

182 Chris BennerTable 7.2Indicators of flexible employment in Silicon ValleyWorkersGrowth in the non-standard Change Increaseworkforce a 1984 1998 (%) (No.)Temporary workers 12,340 33,850 174 21,510Part-time workers 136,200 180,762 33 44,562Business services 48,500 130,300 169 81,800Self-employed 45,700 76,920 68 31,220Upper estimate of size of nonstandardworkforce 242,700 421,832 74 179,132Lower estimate of size of nonstandardworkforce 189,300 277,992 47 88,692Total civilian employment 761,200 961,500 26 200,300EmploymentEmploymentgrowth of firmsgrowth of newSigns of employment volatility existing in 1990 firmsEmployment in high-techindustries (1990–2001) b –120,559 258,7961999–2000 2001–2002Employment change inhigh-tech industries c +12% –22%Median job tenure (2001) d 30 monthsSources: a Figures for temporary workers and business services come from the CaliforniaEmployment Development Department. Figures for self-employment are projections based on USCensus data. Figures for part-time employment are from the Bureau of Labor Statistics, andassume Santa Clara County has the same percentage of part-time workers as the nationb Junfu Zhang, High-tech Start-ups and Industry Dynamics in Silicon Valley (San Francisco:Public Policy Institute of California, 2003)c Joint Venture: Silicon Valley Network, 2001 Index of Silicon Valley and 2003 Index of SiliconValley (San Jose: Joint Venture: Silicon Valley Network, 2001, 2003)d Manuel Pastor, Laura Leete, Laura Dresser, Chris Benner, Annette Bernhardt, Bob Brownstein,and Sarah Zimmerman, “Economic Opportunity in a Volatile Economy: Understanding the Roleof Labor Market Intermediaries in Two Regions,” report to the Ford Foundation (San Jose:Working Partnerships, 2003)Mediated employment relationships: Another significant development in thenature of employment relations is the increasing mediation of that relationshipby forces or institutions external to the firm. In some cases, this has beenreferred to as “market-mediated work arrangements” (Abraham, 1990;Cappelli, 1999) in which pressures from outside the firm boundaries are usedas a management tool, which has become highly entrenched in Silicon Valley.This is reflected in the following description of electronic manufacturingservices firm Solectron’s shop-floor management system:

Labor in the network society 181ment relationships; (2) shortened job tenures, reflected in high levels of jobturnover; and (3) mediated employment relationships, in which the directemployee–employer relationship is mediated by additional institutions andexternal pressures.Non-standard employment: This term <strong>ge</strong>nerally refers to all employmentthat is not characterized by full-time, year-round employment for an indefiniteperiod, working for a single employer who lar<strong>ge</strong>ly directs and controls theconditions of employment (Carré et al., 2000; Kalleberg, 2000). This includestemporary, part-time, contract employment, and self-employment. While estimatesof non-standard employment vary, driven by ambiguities in definitionsand difficulties in measurement, it seems to be high in Silicon Valley andgrowing quite rapidly (Benner, 2003d). Between 1984 and 1998, for example,employment in temporary help a<strong>ge</strong>ncies in the Valley grew by 174 percent,compared to 26 percent in total employment (see table 7.2). Between 1990 and1994, employment in temporary a<strong>ge</strong>ncies actually increased by 30 percent,while overall employment declined.Outsourcing has expanded in the past twenty years, first in service activities,manufacturing, and now increasingly in high-end design (Davis, 2003).The numbers of independent contractors and self-employed people haveexpanded as well: approximately 15 percent of tax returns in the regionincluded some self-employment income in 1999 (JV: SVN, 2000). Dependingon how one deals with potential double-counting, and definitions, an estimated44–74 percent of all job growth in Santa Clara County between 1984 and 1998was accounted for in the growth of non-standard employment (Benner, 2002).Using a somewhat broader definition of non-standard employment, a surveyin 1999 estimated that a full 67 percent of workers in the state as a whole donot have “traditional employment” (Yelin and Trupin, 1999).Job turnover: As described above, there are high levels of job turnover inSilicon Valley, as employees move more frequently from firm to firm. A 2001survey of workers 25 years and older found a median job tenure of 30 months(about half the national median of 4.7 years), 3 with only 32 percent reportinghaving worked in their current job for at least five years, and only 20 percentlon<strong>ge</strong>r than ten years (Pastor et al., 2003). Perhaps more important thanincreased turnover, however, is the short-term nature of the implicit employmentcontract, with many firms and workers not even presuming they willhave a long-term relationship, even if workers are hired in “permanent” positions(Rousseau, 1995). There is widespread acceptance of people movingfrequently from company to company; loyalty is typically owed more toproject teams, particular technologies or industries, or the Valley as a whole,rather than to individual companies.

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