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 business you have short term or long term employment can fill your manpower needs. Both of these types of employment have their advantages and disadvantages. Choosing between these two types of employment would be easy if you know what you really need for your business. Certain business types would benefit more from hiring short term employees and certain businesses would benefit more from long term employment.
A lot of businesses benefit 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 terminate the services of a problem employee, all you have to do is to wait for the employment contract to expire; and the salaries tend to be cheaper compared to long term employees which has to be raised on a yearly basis as mandated by law. However, there are disadvantages too. One is that it is difficult to cultivate employee loyalty if you have to changed employees every few months or so; and another is it can be difficult to maintain and improve product and service quality if you’re hiring new employees all the time. You cannot afford to really invest 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 provide 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 terminate the services of a problem employee because of his right as stipulated by the law. Such situations must be handled carefully. Illegally terminating a regular employee 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 quality of your products and services as the quality of your employees improve over time as they get better and better at what they do. You can afford to invest in their training because they will be serving your business for a long time.
One fact that needs to be understood though is that no business can rely solely on one type of employment. There are certain positions in a business where hiring a contractual employee might be counter productive. You can’t hire managers for only three months. Such positions are better filled by regular employees with extensive knowledge of the business and experience. Short term employment is more applicable for more simple jobs such as working the counter in a fast food chain or labor jobs where the employees require little or no training to fulfill their task.
Neoko Cortwell is a freelance writer and web designer. If you want to start your own creative journey to becoming a freelance designer yourself, visit Sitegrinder Review for more information.
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