Academic Master

Business and Finance

Part-time Contract

In this current time, the use of part-time or temporary workers is rapidly increasing. It has spread all across the world, around different factories and industries taking from manufacturing to services and other professions (Davis-Blake, A. Uzzi, 1993). This also includes labors, bankers, IT specialists, and bankers as well. There is an increase in the number of companies hiring part-time employees to remain competitive in the market by reducing costs of undertaking the business (Bardasi, Francesconi, 2004).
There are different factors that effects contract based employee performance (Anwar, Aslam, Tariq, 2011).
Uncertainty in job decreases the performance of a temporary employee
Temporary workers have a high rate of performance compared to as a permanent employee
Benefits can be used as a motivation to push up employee performance
Part-time workers are faithful to their firm
It is accepted that the efficiency of a worker is a significant constituent for the employer as well as the organization. Generally, there exists two types of employees, the standard employee i-e permanent employee and secondly on contract basis i-e temporary employees (Heaney, C.A, 1994).
Temporary employees may not perform better in a job due to uncertainty. A worker who has expectations for a fresh job may easily like the contractual job, but this employment may be affected by the external factors like recession and inflation, these employees may feel insecure under such circumstances (Sverke, Hellgren, 2002).
If we talk about the permanent employment, an individual who has a permanent job, it will upturn expectations about his job (Davy, 1997). This creates the level of mental satisfaction about its future (Ruvio, 1996), meaning to reduce the threats of losing his job (Heaney, Israel, & House, 1994).
Hence it has confirmed the popular observation that the temporary job is generally not desirable as much as the permanent employment. The temporary employees have a lower level job satisfaction than that of permanent job holders. Temporary employees always face fear of losing the job which further reduces the performance of the employee. Temporary employees get less incentives, and less training which usually demotivates the temporary employee. There are some evidences that the contractual employments are further transformed into the permanent employment. Moreover it is found that there is a relationship between temporary employment and psychological injury. Health risks are dependent upon the uncertainty of the employment. So permanent jobs are always favorable for the employee performance and job satisfaction.


Anwar, M.S., Aslam, M. and Tariq, M.R., 2011. Temporary job and its impact on employee performance. Global Journal of Management and Business Research11(8).
Bardasi, E. and Francesconi, M., 2004. The impact of atypical employment on individual wellbeing: evidence from a panel of British workers. Social science & medicine58(9), pp.1671-1688.
Davis-Blake, A. and Uzzi, B., 1993. Determinants of employment externalization: A study of temporary workers and independent contractors. Administrative Science Quarterly, pp.195-223.
De Cuyper, N., De Jong, J., De Witte, H., Isaksson, K., Rigotti, T. and Schalk, R., 2008. A literature review of theory and research on the psychological impact of temporary employment: Towards a conceptual model. International Journal of Management Reviews, 10(1), pp.25-51.
Heaney, C.A., Israel, B.A. and House, J.S., 1994. Chronic job insecurity among automobile workers: Effects on job satisfaction and health. Social science & medicine38(10), pp.1431-1437.
Kahn, L.M., 2007. The impact of employment protection mandates on demographic temporary employment patterns: International microeconomic evidence. The Economic Journal117(521).
Sverke, M. and Hellgren, J., 2002. The nature of job insecurity: Understanding employment uncertainty on the brink of a new millennium. Applied Psychology51(1), pp.23-42.
Sverke, M. and Hellgren, J., 2002. The nature of job insecurity: Understanding employment uncertainty on the brink of a new millennium. Applied Psychology51(1), pp.23-42.
Yousef, D.A., 1998. Satisfaction with job security as a predictor of organizational commitment and job performance in a multicultural environment. International Journal of Manpower19(3), pp.184-194.



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