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The emerging employment system characterized by a high degree of employment security with flexible job assignments, employee involvement in problem solving and continuous improvement, and continuous training of employees is discussed. This model is called the SET system (for Security, Employee involvement and Training) and it is examined by means of case studies of five US firms that are attempting to establish or maintain a SET system. It is found that SET systems are difficult to implement in a gradual and partial manner. The three elements of SET reinforce one another and firms that are successful in adopting SET have made an investment to implement all three SET elements simultaneously. Four factors that impede implementation of a SET system are then identified.
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