The Effect Of Short Term Employment Contracts On Staff Motivation In Nigeria
The Effect Of Short Term Employment Contracts On Staff Motivation In Nigeria
Abstract
This study was carried out to examine the effect of short term employment contracts on staff motivation in Nigeria using staff of GT Bank, Ado-Odo Otta LGA branch, Ogun state as a case study. Specifically, the study was aimed at find out the effect of short term employment contract on staff productivity, analyze the effect of short term employment contract on employee motivation to perform better, examine the factors that motivate short term contract staff in Nigeria. The study employed the survey descriptive research design. A total of 30 responses were validated from the survey.From the responses obtained and analysed, the findings revealed that the effect of short term employment contract on staff productivity is that low wages affects staff commitment to work hard, lack of job security leads to poor input in the work, it leads to loss of interest in the job, and It leads to low morale. Furthermore, the factors that motivate short term contract staff in Nigeria includes working environment, wages/salary, feeling of sense of meaning and purpose in the work, being recognized for their hard work, a clear path of career progression, and opportunity for learning and development.The findings of the study also revealed that there is significant effect of short term employment contract on employee motivation to perform better. The study therefore recommended thatthat organizations should work on their short term contract employment and device a means of retaining the staffs after the expiration of their contract. Also, incentives should be created to motivate contract workers too enable them to be productive.
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).
1.2 Statement of the Problem
Despite of the fact that there has been considerable growth in short term employment in organizations across the globe, the growing body of research remains largely limited to employees (typically referred to as permanent employees) hired with an expectation, on the part of both employer and employee, of relatively long-term employment, whether full or part-time. Very little research links progressive human resource management practices and systems to the management of workers hired on a short term basis and staff motivation.
Staff nowadays are not that motivated to work like before due to the mode of employing in some organizations most especially financial institutions, they hire most of their staffs on contract basis majorly two years and after that they dumb them, all this contributed to weariness of most employees and they are not motivated to give the employer their best since they know they might not be retained after their contract. 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, therefore this research intends to research on the effect of short term employment contract on staff motivation in Nigeria.
1.3 Objective of the Study
The main objective of this study is to find out the effect of short term employment contract on staff motivation in Nigeria, specifically the study intends to:
- Find out the effect of short term employment contract on staff productivity
- Analyze the effect of short term employment contract on employee motivation to perform better.
- Examine the factors that motivate short term contract staff in Nigeria.
1.4 Research Question
- What are the effect of short term employment contract on staff productivity?
- Is there any significant effect of short term employment contract on employee motivation to perform better?
- What are the factors that motivate short term contract staff in Nigeria?
1.5 Research Hypothesis
Ho: there is no significant effect of short term employment contract on employee motivation to perform better
Hi: there is significant effect of short term employment contract on employee motivation to perform better
1.6 Significance of the Study
This research work will be of significance to organizations especially financial institutions on how to motivate their contract staff so as to get an hundred percent job performance from them and this will definitely affect the organizational growth. This research work will also expose employees on the benefits and effects of contract employment and also proffer some tactics that will make their employer employ them permanently.
Finally this research work will serve as guide and reference point for other research on the same topic.
1.7 Scope of the Study
This research will conducted in Ogun state, Ado-Odo Otta LGA, a branch of GT Bank will be used as a case study for this research.
1.8 Delimitation of the Study
Finance for the general research work will be a challenge during the course of study. Correspondents also might not be able to complete or willing to submit the questionnaires given to them.
However, it is believed that these constraints will be worked on by making the best use of the available materials and spending more than the necessary time in the research work. Therefore, it is strongly believed that despite these constraint, its effect on this research report will be minimal, thus, making the objective and significance of the study achievable.
1.9 Definition of Terms
Short term employment:
Workers who hold explicit or implicit contracts of employment which are expected to last longer than the period.
Chapter Five
Summary, Conclusion and Recommendation
5.1 Summary
In this study, our focus was to investigate the effect of short term employment contracts on staff motivation in Nigeria using staff of GT Bank, Ado-Odo Otta LGA branch, Ogun state as a case study. The study specifically was aimed at find out the effect of short term employment contract on staff productivity, analyze the effect of short term employment contract on employee motivation to perform better, examine the factors that motivate short term contract staff in Nigeria.
The study adopted the survey research design and conveniently enrolled participants in the study. A total of 30 responses were received and validated from the enrolled participants where all respondent are drawn from the staff of GT Bank, Ado-Odo Otta LGA branch,Ogun state.
5.2 Conclusion
Based on the finding of this study, the following conclusions were made:
- The effect of short term employment contract on staff productivity is that low wages affects staff commitment to work hard, lack of job security leads to poor input in the work, it leads to loss of interest in the job, and It leads to low morale.
- The factors that motivate short term contract staff in Nigeria includes Working environment, Wages/salary, Feeling of sense of meaning and purpose in the work, Being recognized for their hard work, A clear path of career progression, and Opportunity for learning and development
- There is significant effect of short term employment contract on employee motivation to perform better
5.3 Recommendations
In the light of the findings and conclusions, the following recommendations are hereby proposed that organizations should work on their short term contract employment and device a means of retaining the staffs after the expiration of their contract. Also, incentives should be created to motivate contract workers too enable them to be productive.
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Frequently Asked Questions
Does short term employment affect employee productivity in the Kenya Forest Service?
From the findings it was revealed that short term employment affected employee productivity in the Kenya Forest Service to a very great extent. Short-term employment affected productivity of staff in the firm since a lot of time was used training the new employees given that turnover of the short term employment was high.
Is short term employment a source of negative outcome?
Several authors (see 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.
Is short-term employment of limited duration increasing?
The growth in short term employment (i. e. dependent employment of limited duration, as in the case of fixed-term contract workers or short term agency workers, OECD, 2008) from the mid 1980s up to now has attracted a great deal of scholarly attention.
Why are industry groups still unenthusiastic to incorporate short term employees?
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.
What do you need to know about contract of employment in Kenya?
Employers and employees need to know about Contract of Employment in Kenya including fixed term and short term employment contract law, employee agreement, temporary contract law, work probation etc.
What are the barriers to agricultural productivity in Kenya?
The principal barriers to agricultural productivity in Kenya are clustered in six areas: Land and population pressures: Average farm size is falling and land distribution is becoming more concentrated, leading to significant constraints on production, particularly for smallholders.
What stimulates work compensation at Kenya Literature Bureau?
Scholars have centered on contentment, gratitude, thankfulness and job surroundings as worker stimulators in several organizations (Kosgei, 2011). But none has researched on worker compensation at Kenya Literature Bureau.
What is productivity of workers?
Defining worker productivity In a general sense, productivity can be defined as the ratio between a measure of output and a measure of input. The productivity of workers could thus be measured as an output, e.g. sales or units produced, relative to an input, e.g. the number of hours worked or the cost of labor.
What is a limited term employment contract?
Limited term employment contracts help global employers minimize the risk of damages by limiting the distribution of entitlements or benefits upon termination. By hiring employees on a limited term basis, employers can manage their liabilities and have the freedom to terminate contracts as needed.
What is the definition of short term limited duration insurance?
A. Summary. This rule amends the definition of short-term, limited-duration insurance coverage so that the coverage has a maximum initial contract term of less than 12 months and a maximum duration (including the initial contract term and renewals and extensions of the same insurance contract) of no longer than 36 months.
What are the pros and cons of limited term employment?
Pros and Cons of Limited Term Employment. Limited term employment is a practice where a person is contracted to work for a set amount of time. This employment option allows companies to find team members that are looking to fill short-term assignments or onboard expatriates that consistently move from country to country.
What is the benefit of lengthening the term of short-term plans?
Lengthening the term of short-term, limited-duration plans will help reduce the fraction of the population that is uninsured by giving the uninsured a greater variety of plan choices. Similarly this rule also offers additional choice to persons who would otherwise be limited to the products offered on their local Exchange.
What are the negative effects of short term employment?
Regarding the unfavorable consequences that can be associated with short term employment, Millward and Hopkins (1998) found that the inexperience of temporary employees added to the lack of induction and investment in their skills, might have a negative influence over the attitudes they have concerning security and the best way to perform their …
Is there a theoretical framework to analyse the effects of short term employment?
According to De Cuyper et al. (2008), there is no available theoretical framework to analyse the effects of short term employment. Nevertheless, general psychological theories may offer a good starting point for the analyses, although these have mostly been developed against the backdrop of the permanent employment relationship.
What is short-term employment and why does it matter?
Short term employment is perceived as resulting from continuous changes in the working arrangement around the world and has become a key concern in the last three decades (Foote, 2004).
What are the effects of lack of employment?
There may be direct effects on employment and earnings, as people without any qualifications find it harder to find jobs, particularly skilled jobs. The effects of employment deprivation on health have been discussed in the previous section.
Do investors punish companies with a short-term or long-term orientation?
Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.
Why is there such a short-termism in corporate governance?
Quarterly reporting, where it is still obligatory, is not of itself the reason for short-termism; there are many other factors at play. There is an asymmetry in director versus shareholder legal duties towards the companies they serve or hold shares in, respectively.
Why do long-term investors oppose short-term shareholders?
If short-term investors apply pressure for results, the long-term investors also reap the benefit of that short-term improvement, so they tend not to overtly oppose short-term shareholders.
Is short-term performance important when investing in the long term?
Investing in the long term is easier when the short-term performance is respectable. In that regard, some sort of short-term performance will always be a necessary focus. Companies need to articulate credible short-term strategies that plug into longer-term goals.
