I strongly believe that employee contract has a significant impact on the attitudes that employees have towards their organization. First, employee contracts come in various categories for different employees. Some contracts are permanent, while others are temporary or short-term. Employees on permanent contracts enjoy such statutory benefits as insurance, paid leave, and pension—all of these result in positive work behaviors, outcomes, and commitment from the respective employees. Therefore, an employee on a permanent contract is more likely to have a positive attitude toward the organization that he works in. On the other hand, contract employees are aware that their jobs are uncertain.
They could be relieved any minute, especially if there is a purge. Since most of the contract employees may not be aware of their fate tomorrow, they do not have enough motivation to devote themselves fully to the organization. The knowledge that contract employees are the first victims of retrenchment is dispiriting enough to make them have negative attitudes towards the organization. Hence, it is true that different employee contracts can influence the mood of employees towards the organization.
Our organization is cognizant of this fact and has, thus, put some policy measures to ensure that contract employees, too, become motivated at work. There is a deliberate attempt to create a sense of connection between permanent and contract employees. Our company takes time to explain to the contract employees that they hold significant positions for the organization and thus are equally important as their permanent colleagues. This way, contract employees do not feel like they are outsiders. Additionally, contract employees are constantly reminded of various growth opportunities and encouraged to go for them. It is the policy of the company to elevate contract employees with impressive performances to a full-time job basis. This is a move that is meant to encourage the employees that they stand to also benefit from the statutory perks if they work hard.
The company also recognizes great work from contract employees and rewards them. The aim of this is to encourage them to continue working hard as attractive packages are awaiting them. Moreover, the organization is not very strict on contract employees. They are offered flexible time schedules and even allowed to work from home, depending on their tasks. This way, they feel embraced by the company and hence are motivated to give in their best. Therefore, employees’ attitudes towards their job are partly influenced by their type of contracts. Once an organization acknowledges this fact, it should come up with strategic policy measures to ensure that employees on an unattractive contract basis do not feel demotivated.