THE IMPACT OF SHORT-TERM CONTRACTS ON STAFF MOTIVATION IN NIGERIA
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CHAPTER ONE
INTRODUCTION
1.1 Background of the Research
Employees are a company’s most valuable asset. They are the company’s most visible representatives to customers. For employees to perform well, they must be motivated and interested in their work. People are typically assumed to be motivated by professional progress, compensation, teammates, challenging and intriguing work assignments, and the stability a job provides. Temporary employees lack the vast majority of these “typical” motivators. The question of what drives temporary workers therefore emerges.
In the 1970s, when unemployment in Europe rose, the concept of contract work was established. In 1980, this was estimated to be 80 percent in France and up to 90 percent in Spain. Since the 1980s, several businesses have altered their operations (Handy, 1995). Temporary work has a significant role in total employment. The Bureau of Labor Statistics projects that contract employees were around 9.4% of the overall employment in 2001. (2001). Contract employment has increased in a number of nations. (see OECD 2002, Booth and others 2002a). This high rate is a result of the company’s low risk. Job security has a good relationship with employee performance. Contract employees are simple to hire and fire. These employees are employed when there is a temporary need for them, such as for seasonal employment or an increase in demand, and can be terminated when these conditions no longer exist. Employees desire fair and equitable differentiation based on their abilities and expectations.
Some companies use the short-term employment condition as a pseudo-probationary period to screen out people who do not fulfill performance standards or do not otherwise “fit” the organization, or to extend an offer of long-term employment to those who are deemed desirable (Druker and Croucher, 2000). Developing a stronger, more meaningful employer-employee relationship with their short-term personnel may be of great benefit to these businesses. Individuals may enter the short-term labor market for a variety of reasons, including an inability to acquire more desirable or permanent employment, a desire or need for retraining, or a need for greater flexibility over when and where to work. On the other hand, a significant proportion of them do so in the implied hope of gaining a longer-term employment offer (Foote and Folta, 2002). In other instances, the desire for longer-term employment originates from lenders’ opinion that, due to their less consistent income source, short-term workers pose a significant financial risk, and short-term workers wish to avoid being perceived as high-risk investments.
The recent inability of the European Union to find a consensus on the wording of the Agency Workers’ Directive is proof that, despite advancements in many areas, industry groupings continue to be unenthusiastic about completely incorporating temporary workers. The directive, which appeared to have the backing of most European allies, aimed to enhance the rights of temporary employees (Donkin, 2003). During the 1990s, ten percent of the United States’ net employment growth was attributable to an increase in temporary work. Case studies and company surveys indicate a significant increase in the outsourcing of services to contract organizations, as well (Houseman, 2001). Aspects such as the technologies utilized in the production process, the specialization of the labor force, and development niches are examples of the variety of elements that have been in a state of perpetual change to date. Short term employment is part of the phenomena of short time employment, which is typically viewed as the result of a big push by governments and corporations in developed nations to build more flexible labour markets and to cut labour costs (Golden and Appelbaum, 1992, cited in Rogers, 2000). Alternately, the short-term job industry may be deliberately supporting its own expansion and preventing regulation (Gono, 1997, cited in Rogers, 2000).
1.2 Description of the Problem
Even though there has been a significant increase in short-term employment in organizations around the world, the growing body of research remains largely limited to employees (typically referred to as permanent employees) hired with the expectation of relatively long-term employment, whether full-time or part-time. Very little study has established a connection between advanced human resource management techniques and systems, the management of personnel employed for a short period of time, and staff motivation.
Staff today are not as motivated to work as they were in the past due to the mode of employing in some organizations, particularly financial institutions. These organizations hire the majority of their employees on a contract basis for two years, after which they let them go. This has contributed to the weariness of most employees, who are not motivated to give their employer their best effort because they may not be retained. Several authors (De Cuyper, De Jong, De Witte, Isaksson, Rigotti, & Schalk, 2008) suggest that short-term employment may be a source of negative outcomes for both individuals and the organization; thus, the purpose of this study is to investigate the impact of short-term employment contracts on employee motivation in Nigeria.
1.3 Objective of the Research
This study’s primary objective is to determine the impact of short-term employment contracts on employee motivation in Nigeria. Specifically, the study aims to:
Determine the impact of short-term employment contracts on employee productivity.
Analyze the impact of short-term employment contracts on employee motivation to improve performance.
Examine the factors that encourage temporary contract employees in Nigeria.
1.4 Investigative Question
What impact do short-term employment contracts have on employee productivity?
Is there a significant relationship between short-term employment contracts and employee performance?
What motivates short-term contract employees in Nigeria?
1.5 Scientific Hypothesis
False: short-term employment contracts have no substantial effect on employee motivation to perform better.
Hello: short term work contracts have a big impact on employee incentive to perform better.
1.6 Importance of the Research
This research will inform firms, particularly financial institutions, on how to inspire their contract employees to achieve 100 percent job performance, which will influence the growth of the organization. This research will also inform employees about the advantages and disadvantages of contract employment and provide strategies that will convince their employer to hire them permanently.
This research will act as a guide and point of reference for future studies on the same topic.
1.7 Scope of the Research
This research will be undertaken in Ogun state, Ado-Odo Otta LGA, and a GT Bank branch will serve as a case study.
1.8 Limitations of the Research
During the course of study, obtaining funding for general research will be a struggle. In addition, respondents may not be able to or want to submit the questionnaires provided to them.
However, it is anticipated that these limitations will be overcome by maximizing the use of available resources and devoting additional time to research. Therefore, it is strongly expected that despite these constraints, their impact on this research report will be small, allowing the study to achieve its purpose and significance.
1.9 Explanation of Terms
Short-term employment refers to workers with express or implicit contracts that are intended to endure longer than the duration.
THE IMPACT OF SHORT-TERM CONTRACTS ON STAFF MOTIVATION IN NIGERIA
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