Employee Contract Impact on Retention: A Range Company Case Study

Desklib provides solved assignments and past papers to help students succeed.

RESEARCH FINDINGS AND ANALYSIS

Table of Contents
INTRODUCTION........................................................................................................................2
DATA COLLECTION................................................................................................................... 2
FINDINGS..................................................................................................................................7
CONCLUSION............................................................................................................................9
REFERENCES........................................................................................................................... 10
APPENDIX............................................................................................................................... 11
2

INTRODUCTION
This report presents research findings and answers based on analysing the impact of short-
term and long-term contracts on employee retention in the company “The Range”. The
literature review presented in the assessment 1 has supported in analysing the concept and
fundamentals of the employee retention and its relation with the short-term and long-term
contract within the company. By following a set research methodology and literature, the
relevant questionnaire is prepared and the findings from the questionnaire are presented in
the report to identify the possible trends and relationships to answer the research question
and achieve research objectives successfully.
DATA COLLECTION
In order to collect the relevant data from the research study a questionnaire survey
involving around 20 closed-ended questions is prepared. The data collected from the 20
questions are recorded below in a tabular form. The questionnaire is performed among the
employees of ‘The Range’ to analyse the impact of the short-term and long-term contract
on employee retention within the company. The sample size for collecting primary data is
around 100 respondents. From the 100 respondents around 4 respondents have denied
filling the survey form whereas, only 83 respondents have completed the form (Neuman
and Robson, 2014). Thus, the responses of the 83 respondents will be considered for further
research. The collected data is set to be analysed by applying the technique of frequency
analysis by using percentage.
1. What is your age?
Below 25 21
Between 25-40 43
Above 40 19
Total 83
2. Designation
Senior level employees 12
Middle level employees 20
3

Lower level employees 51
Total 83
3. Are you on at contract employment at the company?
Yes 57
No 26
Total 83
4. What is the term of your employment contract?
Short-term 35
Long-term 22
Open-ended contract position 26
Total 83
5. Does your performance is affected by the term of your contract?
Yes 58
No 20
Maybe 5
Total 83
6. Does the employee contract influences organisational and employee relationship?
Yes 50
No 25
Maybe 8
Total 83
7. Do you experience any difference in the treatment between permanent and short-
term employees at the company?
Yes 66
No 5
Maybe 12
Total 83
8. Does the difference in the management treatment among the permanent and
temporary employees affects your work commitment?
4

Yes 62
No 8
Maybe 13
Total 83
9. Do you think the short-term contract results in low level of employee productivity?
Yes 35
No 30
Maybe 18
Total 83
10. Do you think a short-term contract reduces employee morale?
Yes 29
No 33
Maybe 21
Total 83
11. Do you think short-term contracts are the key reason for employee turnover within
the company?
Yes 33
No 22
Maybe 28
Total 83
12. Does your organisation confront higher level of unscheduled employee turnover?
Yes 28
No 22
Maybe 33
Total 83
13. Do you think your organisation is biased in making investment for short-term
employees?
Yes 52
No 18
Maybe 13
5

Total 83
14. Does biased behaviour of company result in reduced employee morale?
Yes 34
No 30
Maybe 19
Total 83
15. Do you think the employee contract types affect the job satisfaction among the
employees?
Yes 34
No 28
Maybe 21
Total 83
16. Do you think the short-term employment contract creates job insecurity among the
workers?
Yes 33
No 30
Maybe 15
Total 83
17. Does the sense of job insecurity affect your performance at the work?
Yes 49
No 17
Maybe 17
Total 83
18. Do you think the job satisfaction among the permanent employees also affected by
the feeling of job insecurity?
Yes 59
No 8
Maybe 16
Total 83
6

19. Does the short-term employee contract reduce intrinsic motivation among the
employees?
Yes 56
No 14
Maybe 13
Total 83
20. Do you think permanent employees are more satisfied than the temporary
employees are?
Yes 60
No 10
Maybe 13
Total 83
7

FINDINGS
The literature sources has provided a clear overview of the different aspects of the
employee retention in relation with the employee contract within a company. That has
enabled to formulate an effective questionnaire survey to collect primary data. The primary
data has suggested that the majority of the employees at the Range are young adults as
around 52% employees’ lies between the age ranges of 25-40 years. It has been founded
that among the respondents around 61% respondents are lower level employees within the
company. Through this, it can be clearly stated that there is significant number of employee
with short-term contract within the company as the short-term contract employees are
usually belong to lower level positions (Wandera, 2011). The primary data has favoured this
fact as it is obtained that around 69% employees within the Range are on the contract
employment terms from all of its employees around 42% are on short-term contract and
26% are on the long-term contract while 32% are on the open-ended contract position.
The literature sources has suggested that the employment contract term has a great impact
on the performance and satisfaction among the employees. Around 70% of the respondents
have agreed that their performance within the organisation is affected by the terms of
contract with the company. Whereas, 60% of the employees have also agreed that the term
of employment contract has a significant impact in the employee relationship with the
organisation. They showed that the short-term employee contract results in negative
behaviour of employees and this also affects the employee relationship with the
organisation (Callea, et al., 2016). In favour to this around As 80% of the employees has
agreed that the they have faced differences in the treatment of management among the
permanent and temporary employees. Management is more lenient towards permanent
employees as compared to that of temporary ones. This indifference in the management
treatment has affected the work commitment of the employees at a great extent. Around
75% employees has favoured that they feel less motivated and ignored within the
organisation. 43% employees has also favoured that due to ignorance of management
towards the temporary employees, the employees feel less-motivated that reduces their
willingness to perform effectively at work.
8

It secondary data has also suggested that the employees with short term contract also have
low morale (Hart, 2010). While the primary findings has not provided any clear information
in relation to the impact of employment contract on the employee morale as there is very
little difference in the responses while majority of the employees i.e. 40% has suggested
that there is no significant impact on the employee morale within the company. employees
contract affects the level of employee turnover within the company, while considering the
influence of employee contract in driving employee turnover within the company, it is has
been founded that the short-term contracts is one of the key reason for the employee
turnover within the company as per the views of the 40% employees of the company.
It has been founded that the majority of the employees has not clearly expressed their
views but through the findings of the primary data it can be suggested that the range
company is facing a significant rate of unscheduled employee turnover as around 34%
employees have strongly agreed with the fact and 40% have selected may be. The literature
sources have showed that the employees with short-term contracts often experiences bias
at the organisation. It has been founded that the employees of the Range considers that the
organisation is biased to the employees with short-term contract as around 63% of the
employees have strongly favoured the fact. The biased behaviour of the management also
affects the employee morale at the company as 41% of the employees has favoured that the
biased behaviour of the management resulted in the reduced employee morale at the
company.
The literature has suggested that the type of employment contract has a great impact on
the job satisfaction and performance of the employees. It has been founded that the
employees with the short-term contract are less satisfied as compared to the employees
with the long-term contracts and open-ended contracts (Aguenza, and Som, 2018). The
primary data has revealed that the 43% of the employees are also favoured that the
employment contract has a great impact on the level of job satisfaction among the
employees. To test whether the employee contract creates insecurities, affects motivation
and satisfaction level of employees or not a few questions has been asked that has
suggested that the more than 40% of the employees have agreed that the short-term
employee contract drives insecurities among the employees at the Range. The increased
sense of job insecurity also affects the employee performance at the work as 59% of the
9

employees believes that the insecurities affect the motivation and willingness to perform
better at the organisation. Moreover, job insecurities also affects the satisfaction level
among the employees as the employees become conscious about their career and expects
more from the organisation. Around 72% of the employees believes that the insecurities
affects the satisfaction level during work. The secondary data has also revealed that the
employees with the short-term employment contract have reduced work motivation as
around 68% of the employees has agreed that the consequences of Short-term contract has
reduced their intrinsic motivation to work effectively. It has been also founded that the
employees with the permanent contract with the company are more satisfied as compared
to that of temporary employees as the 75% of the employees has agreed to the question.
CONCLUSION
From the above research and findings, it can be clearly concluded that the type of
employees contract do have a great impact on the employee satisfaction and retention
within an organisation. The research conducted within the employees of the business
organisation ‘The Range’ has suggested that the three is a difference between the
performance and motivation of the employees with short-term employment contracts as
compared to the permanent employees. The employee with short-term employment
contract experience insecurities, biases, dissatisfaction at the organisation that affects their
willingness and motivation to perform effectively within the company. The insecurities and
dissatisfaction caused among the short-term employees is resulted in the increased rate of
employee turnover within the organisation. The employees has low level of morale as they
perceives that the management is biased with them and this creates insecurities among
them this in return leads to ineffective employee performance at the organisation. And thus,
it is important for the company to make systematic planning and strategies to motivate
employees with short term contract by developing effective strategies to encourage and
motivate them to perform with higher efficiency throughout their term with the
organisation. This may also result in extent employment term and permanent and skilled
employees for the organisations.
10

REFERENCES
 Aguenza, B.B. and Som, A.P.M., 2018. Motivational factors of employee retention
and engagement in organizations. IJAME.
 Callea, A., Urbini, F., Ingusci, E. and Chirumbolo, A., 2016. The relationship between
contract type and job satisfaction in a mediated moderation model: The role of job
insecurity and psychological contract violation. Economic and Industrial Democracy,
37(2), pp.399-420.
 Hart, B., 2010. Working Time and Employment (Routledge Revivals). Routledge.
 Neuman, W.L. and Robson, K., 2014. Basics of social research. Toronto: Pearson
Canada.
 Wandera, H.T., 2011. The effects of short term employment contract on an
organization: a case of Kenya Forest Service. International journal of humanities and
social science, 1(21), pp.184-204.
11

APPENDIX
Questionnaire Form
1. What is your age?
o Below 25
o Between 25-40
o Above 40
2. Designation
o Senior level employees
o Middle-level employees
o Lower level employees
3. Are you on contract employment at the company?
o Yes
o No
4. What is the term of your employment contract?
o Short-term
o Long- term
o Open-ended contract position
5. Does your performance is affected by the term of your contract?
o Yes
o No
o Maybe
6. Does the employee contract influences organisational and employee relationship?
o Yes
o No
o Maybe
7. Do you experience any difference in the treatment between permanent and short-
term employees at the company?
o Yes
o No
12