Case 2: Temporary to Permanent Employment
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Presence of a higher number of temporary employees lowers the employee morale in general. It causes permanent employees to fear that their jobs are in jeopardy. It makes permanent employees view temporary employees as cheaper replacement. At the same time, the feeling of job insecurity overwhelms the temporary employees (Ichino, Mealli, & Nannicini, 2008). Temporary employees usually have a feeling that they may lose their job any time. In some cases both parties, permanent and temporary employees, experience fear for loss of their source of income. Cases of job insecurity bring about adverse effects to the employees’ productivity.
Job insecurity majorly affects temporary employees. Having signed job contracts for a particular period, lapse of the contract period leaves them unstable at work. Most of their energy goes to trying to find a new job and less focus on the current job. They are usually not sure if they will get permanent employment and hence they are always worried. Temporary employees have divided attention in the work area as they are always strategizing on ways to get their next contracts, and this lowers productivity of the employees (Ichino et al., 2008). Job uncertainty and insecurity have negative influence on the performance of short-term employees and the company also.
Temporary-to-permanent policy also causes slower company growth. It is evident in most companies that temporary employees are driven by short-term perspectives. It makes the company be limited to seasonal surge and short-term projects, which leads to slower growth of the entire company. When an organization employs many temporary workers, it misaligns its goals and objectives to be similar with those of the temporary employees (Ichino et al., 2008). It is, therefore, difficult for the company to convince temporary employees to aim at fulfilling long-term goals and growth because they assume that they will not be around to witness te achievements. The temporary employees are usually less committed to their tasks as compared to the permanent employees. It means that the company will not have maximum output from all its employees’ hence slower growth.
Temporary-to-permanent policies also make companies to miss skilled personnel. It is very difficult for highly trained and skilled employees to get employment on a temporary basis. It makes them feel unappreciated, so they avoid such positions. People also seek permanent employment for job security reasons (Ichino et al., 2008). With high living standards, people ignore temporary offers because of the fear of losing their job at any time. It makes a company that employs temporary-to-permanent policy miss skilled personnel.
There are varieties of reasons as to why the majority of people prefer temporary employment to permanent employment. It may turn out to be best practice when one considers opting for a temporary employment to a permanent employment in a recovering economy. In a situation, where there is an economic recession, the majority of employers tend to prefer hiring temporary employees to permanent employees. However, it may turn out to be best practice if an employee decides to choose temporary employment than permanent employment based on the following reasons (Ichino et al., 2008). Temporary work in the end turns not to be temporary. It is because the duration of work that considered temporary has greatly increased. Initially, temporary employment referred to the workers employed for weeks or even days. However, over the time, temporary employment can cover up to five years, which ideally is a long time. Most companies and employers refer temporary employment as contractual employment.
Temporary jobs are universally beneficial. It is with reference to college graduates who may greatly benefit from temporary jobs. They serve as a base, where experience and expertise originaate. Temporary jobs, on the other hand, would lead to a full time permanent employment in a particular institution. Since temporary employment is characteristically performance-based, the majority of employers tend to promote people who perform well in their temporary positions to higher positions (Ichino et al., 2008). In the recent understanding, temporary employment is a means, through which companies identify and grow skilled personnel. It operates from the probability that the current job description differs with the previous. It therefore provides a platform and avenue, through which new sills are acquired and enhanced.
Temporary employment also helps an individual to shape his or her respective career paths. It becomes a vital and important tool, especially for those people who have never been in any form of employment before. It acts as a benchmark for what a professional and career life looks like. It also acts as an avenue, where an individual can network. It is always necessary for an employee to surround himself or herself with a group of people he or she can consult when faced with a difficult task. Professional links become a modern day way of working (Ichino et al., 2008).
Disadvantages of Temporary Employment
The main disadvantage is that someone can end up doing tasks that he or she does not enjoy leading to lack of motivation and boredom. Moreover, there is always the mentality that the job would end soon. It would therefore result to an end in the income. It also becomes very difficult to get a temporary form of employment that matches with an individual skill set. However, various situations would tempt an individual to prefer a temporary form of employment. One of the factors is if they have been unemployed for long periods or they are from college and need a base to build on their skills (Ichino et al., 2008). Moreover, some people prefer to keep changing jobs due to experience and networking. They may opt for a temporary form of employment.