THE EFFECT OF SHORT TERM EMPLOYMENT CONTRACTS ON STAFF MOTIVATION IN NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Employees are the most important asset a company has. They are the face of the company and the most visible part
to customers. For employees to do their job well, they need to be motivated and interested in what they are doing.
Things that are usually believed to motivate people in their working life are career advancement, pay, coworkers,
challenging and interesting work projects, and the stability a job brings to life. Employees, who work on a temporary
basis lack most of these “normal” motivators. Because of this the question of what motivates temporary employees, arises.
Concept of Contract job was introduced in1970’s when unemployment in Europe was rise. In 1980 this was
established at 80% in France and up to 90% in Spain. Since the 1980s, many organizations have changed their
business operations (Handy, 1995). Temporary job plays a major role in total employment. It is projected that, in 2001,
contract workers made up about 9.4% of the total workforce The Bureau of Labor Statistics (2001). Contract job
practice has been increasing in a number of countries. (cf. OECD 2002, Booth ET al.2002a).This high rate is due to
less risk for firm. Employee’s performance has positive relation with job security. Contract base employees are easy
to hire and terminate. These employees are hired in case when there is a need of employees like seasonal work or
increase in demand and after end of these conditions these employees can be terminated. Employees wish that they
distinguish as being fair and equal with their skills and expectations.
Some firms use the short term employment condition as a pseudo-probationary period to preview workers from whom
they screen out those who fail to meet performance criteria or do not otherwise “fit” the organization, or extend an
offer of long-term employment to desired individuals (Druker and Croucher, 2000). Such firms may find significant
benefit in developing a stronger, more meaningful employer-employee relationship with their short term workers.
Individuals‟ inspiration to enter the short term labor market vary broadly and at times include the inability to secure
more desirable or permanent work, or a desire or need for retraining or for greater choice in when and where to work.
On the other hand, a large number of them do so with the implied hope of obtaining an offer for longer-term
employment (Foote and Folta, 2002). In some cases, the aspiration for longer-term employment stems from a
perception on the part of lenders that, because their income source is less stable, short term workers represent a high
financial risk, and these short term workers want to avoid being seen as high-risk investments.
Notwithstanding improvements in some areas, industry groups still appear to be unenthusiastic to fully incorporate
short term employees, as evidenced by the European Union‟s recent failure to reach agreement over the drafting of
the Agency Workers‟ Directive. The directive, which appeared to have secured the support of most European
partners, was attempting to improve the rights of short term workers (Donkin, 2003). Short term employment grew
significantly over the last decade, accounting for 10 percent of net employment growth in the United States during the
1990s. Evidence from case studies and business surveys suggests dramatic growth in the outsourcing of functions to
contract companies as well (Houseman, 2001). Elements such as the technologies used in the productive process,
the specialization of the workforce and niches of development are just examples of the diversity of aspects that have
been in constant change so far. Short term employment is part of the phenomenon of short time employment, often
seen as a consequence of a major push by governments and employers in industrialized countries to develop more
flexible labour markets and to reduce labour costs (Golden and Appelbaum, 1992, cited in Rogers, 2000). An
alternative view, however, is that the short term employment industry itself is actively engaged in promoting its own
growth and preventing regulation (Gono, 1997, cited in Rogers, 2000).
THE EFFECT OF SHORT TERM EMPLOYMENT CONTRACTS ON STAFF MOTIVATION IN NIGERIA