Showing posts with label Employment. Show all posts
Showing posts with label Employment. Show all posts

Tuesday, 3 September 2013

Short Term Employment Vs Long Term Employment

For a long time now businessmen have been debating which one is better, short term employment or long term employment. This issue however shouldn't even be debated. Both kinds of employment have their place in business. Depending on the type of enterprise you have short term or long term employment can fill your manpower needs. Both of these types of employment have their advantages and disadvantages. Selecting between these two types of employment would be easy if you know what you assuredly need for your business. clear enterprise types would advantage more from hiring short term employees and clear businesses would advantage more from long term employment.

A lot of businesses advantage from the short term employment style of employing personnel. Some of the benefits of hiring personnel for short term employment are that the employers are not obligated to pay for the benefits of the employees; it is easier to discontinue the services of a problem employee, all you have to do is to wait for the employment covenant to expire; and the salaries tend to be economy compared to long term employees which has to be raised on a each year basis as mandated by law. However, there are disadvantages too. One is that it is difficult to cultivate laborer loyalty if you have to changed employees every few months or so; and other is it can be difficult to allege and improve stock and aid potential if you're hiring new employees all the time. You cannot afford to assuredly spend a lot of your resources in their training because they are contractual employees.

As opposed to hiring contractual personnel, hiring employees for regularization can be more expensive. When you employ an individual long term you are obligated by applicable labor laws to furnish your employees with the benefits as governed by law. You are obligated to pay their bonuses and incentives as well. It can get difficult to discontinue the services of a problem laborer because of his right as stipulated by the law. Such situations must be handled carefully. Illegally terminating a regular laborer can be cause for a law suit against your business. Sounds expensive if compared to hiring contractual employees. The advantages of hiring regular employees however cannot be overlooked. regular employees tend to be more loyal to their jobs because they have job security. It helps boost the potential of your products and services as the potential of your employees improve over time as they get better and better at what they do. You can afford to spend in their training because they will be serving your enterprise for a long time.

One fact that needs to be understood though is that no enterprise can rely solely on one type of employment. There are clear positions in a enterprise where hiring a contractual laborer might be counter productive. You can't hire managers for only three months. Such positions are better filled by regular employees with total knowledge of the enterprise and experience. Short term employment is more applicable for more straightforward jobs such as working the counter in a fast food chain or labor jobs where the employees need petite or no training to fulfill their task.