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MCO202 Human Resources Management - EU Business School

Topic - Trends in employment contracts: permanent vs. short term

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The relationship between the organization and the individual employee is undergoing a radical transformation.

Employment Contracts

Introduction

Employees are the most important aspect of any organization. Without the human resources the operational units of an organization can have no significant existence. The employees are required for planning and development, for assessing and resolving issues and for various other works (Callea, Urbini, Ingusci&Chirumbolo, 2016). The employees in an organization can have a permanent contract that gives them the benefit for working in a firm indefinitely until they resign on their own. Organizations recruit workers for short-term basis as well where the employees do not have indefinite employment role but have equal rights. Employment can be either contractual or permanent based on the industry and the status of the firm. The shift in global economy and the changes in the world market have changed the idea of employment contracts(Callea et al., 2016). Due to the increase in the level of competitions the outsourcing of employees has increased and downsizing has become a regular concept. The current employment scenario is dependent on the competition and sustainability of the organizations. The concept of "hire and fire" has grown significantly as recruitment has become hassle free and there are plenty of skilled labors seeking jobs in the world market.

The change in the trends of employment is considered a significant change in the world of business (Noelke, 2015). The organizations have started to develop their human resource department and have employed an effective human resource team and a manager in order to provide necessary benefits to the employees. This is done to retain the important and skilled labors that help in the development of the firm. Permanent contracts are getting replaced with short-term hiring as there are more people seeking work that there are positions in firms. Organizations thrive for achieving maximum benefit and for that purpose they employ the most efficient worker available without the consideration of experience or loyalty(Noelke, 2015). This shift in the employment trends have definite benefits but have certain issues with the fulfillment of duties as well.

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