Also it's tough to do this when you're boot strapping and literally every pair of available hands can make or break your first big deal that helps keep the lights on.
Programmers who aren't freelancing are about job stability, and a 3-week contract screams 'unstable'. Yes, there's a normal hiring process after it, but during that time, you haven't provided any measure of stability at all, and so anyone that comes along and promises it is going to be more appealing.
I went through an interview process that had me write a simple CRUD app for free. It wasn't related to their business, and neither of us got anything out of it except qualification for an in-person interview. That is the most I'm willing to stick my neck out for a job, and I wondered if it didn't take a little too much of my time for what it was.
Here in Denver, there are a number of companies hiring through recruiters that try to say "this is a 3 month contract" but the job ends up lasting 2-3 weeks. So you are right, it is hard to get folks to agree to a 3 week "job" - you have to lie to them.
I've had a few top-notch developer friends request recently that a startup allow them to work as 1099 contractors for a month first. They see their time as by far their most valuable asset and they want to learn more about a startup before committing.
In reality, with work-for-hire employee contracts, anyone can leave and anyone can fire for whatever reason. And that's what Paul English does. Contract-to-hire just takes all the expectations and paperwork and emotions out of it.
I'd only take a 1099 if I was getting full benefits and equity, or paid accordingly. Although as a contractor on a one month contract I'd probably still consider my side project looking for a job. Whereas as an employee I will be a lot more vested in the company.
Very true. In practice the law is about what you can prove, not what happened.