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BUSINESS ADMINISTRATION UNDERGRADUATE PROJECT TOPICS

THE EFFECT OF SHORT TERM EMPLOYMENT CONTRACTS ON STAFF MOTIVATION IN NIGERIA

THE EFFECT OF SHORT TERM EMPLOYMENT CONTRACTS ON STAFF MOTIVATION IN NIGERIA

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THE EFFECT OF SHORT TERM EMPLOYMENT CONTRACTS ON STAFF MOTIVATION IN NIGERIA

Chapter one

INTRODUCTION

1.1 Background for the Study

Employees are the most valuable asset a firm has. They represent the company and are the most visible to customers. Employees must be motivated and enthusiastic in their work in order to perform effectively.

Career growth, compensation, coworkers, hard and intriguing work assignments, and the stability that a job provides are all commonly thought to be motivators in the workplace.

Employees working on a temporary basis lack the majority of these “normal” motivators. This raises the question of what drives temporary staff.

The concept of contract jobs was established in the 1970s, when unemployment in Europe was rising. In 1980, this figure was set at 80% in France and up to 90% in Spain. Many businesses have modified their operations since the 1980s (Handy, 1995).

Temporary jobs account for a significant portion of total employment. The Bureau of Labour Statistics (2001) projects that contract workers will account for around 9.4% of the total workforce in 2001.

Contract employment is becoming more common in several countries. (OECD 2002; Booth et al. 2002a).This high rate is attributed to the firm’s lower risk exposure. Employee performance correlates positively with job security.

Contract employees are easy to hire and fire. These employees are employed when there is a need for them, such as seasonal employment or a spike in demand, and they may be terminated at the end of these conditions. Employees aspire to be perceived as fair and equal in their skills and expectations.

 

Some companies use the short-term employment condition as a pseudo-probationary period to screen out workers who do not meet performance criteria or do not otherwise “fit” the organisation, or to extend long-term employment offers to desired individuals (Druker and Croucher, 2000).

Such companies may gain significantly from creating a better, more meaningful employer-employee relationship with their temporary personnel. Individuals may enter the short-term labour market for several reasons, such as a lack of acceptable or permanent work, a need for retraining, or a desire for more flexibility in scheduling and location.

On the other hand, many of them do so with the expectation of receiving an offer for a longer-term position (Foote and Folta, 2002). In other circumstances, the desire for longer-term employment originates from lenders’ belief that

because their income source is less dependable, short-term workers pose a significant financial risk, and these short-term workers wish to avoid being perceived as high-risk investors.

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