Introduction
Recently, the competence of the labor market has intensified. In addition, globalization makes it difficult to employ people around the world. Concerning contracts, there are numerous employment styles involving workers, each with its own set of advantages and disadvantages. The pros and cons of life-long employment (commitment) and temporary employment are discussed in this article. In terms of temporary employment, 11.8 percent of employees are working under a temporary contract (OECD, 2019). Workers have different career goals. Sometimes, they wish to have stability over higher salaries, in which case researching for positions suited to their goals would give them more opportunities.
Life-long employment (commitment)
To begin with, a life-long employment system is known as a permanent or long-term contract made between employees and employers. It is also well known in Asian countries, particularly Japan. To recover from World War II, big companies in Japan adopted their employment system to overcome labor shortages (Madelaine, 2018). Still, some employees are working under its contract.
Pros
- Job security
Many workers have families to maintain, so if their jobs were unstable and in danger of collapsing, they could not feel relief if they were not from a high-income class. On the contrary, employees with this type of employment tend not to feel it as they have less chance of unemployment, and it is difficult for them to create manageable life plans, including for cases such as unexpected expenditures caused by an accident, whereas others are exposed to the risk of unemployment.
- Health services
Some companies have adopted life-long employment, which usually includes health services for employees, in order to reduce their exodus. Furthermore, those companies would increase their credibility throughout society. To enjoy such positive effects and secure labor, companies with life-long employment tends to have or implement health services.
- Build reputation
Gaining trust from coworkers is something that is quite necessary. By achieving trust, the employees’ productivity may increase significantly. In this type of contract, the turnover of a coworker is rare. Because more workers stay in the company for a long time, trust builds between them.
- Easier jobs
Workers with a lifetime employment contract have a lot of time to train for one job. Also, because the types of work rarely change, they become easier. Furthermore, an expert worker can train other employees. As a result, it boosts the overall productivity of the team.
Cons
- Limited opportunities
Opportunities should be provided for everyone; however, in most cases, companies do not do it. It gives importance and confidence to seniority. Thus, even if an employee is more advanced in terms of knowledge and skills, older employees will get them, and it may decrease the employee’s motivation at work.
- Cannot learn new skills
Working for the same company for more than 20–30 years limits their ability to advance. Furthermore, employees could be less competitive when hired at different workplaces if they do not excel in one thing. In addition, if they have a tendency to enjoy stability, their motivation for improvement could be stagnant.
- Less innovation
Having an atmosphere promoting innovation within a company is crucial in order to survive in today’s global economy. However, employees working under contract do not need to change because they have a lower chance of being unemployed. Furthermore, a lot of companies implement the contract system, which is typically based on seniority.
Temporary employment
Pros
- Job flexibility
Some employees want to be able to work from home. Sometimes they work and go to school at the same time (International Labor Organization, 2016). Temporary employment is also an excellent option for those seeking to advance in their careers. And this type of work sometimes offers hourly shifts so that they can enjoy their own free time.
- Learn new skills
Employees can gain experience that will help their resume by working in a variety of positions. Knowledge is greatly enhanced and valuable in order to deal with all types of workplace situations. Furthermore, adaptability, which is important for being active in the business world, will improve to a higher level.
- Build network
Because of the nature of temporary employment, employees can form a wide range of professional networks, which can be useful when applying knowledge learned from them. Furthermore, their knowledge or network grows as they learn about new business opportunities or meet an employer looking to hire someone.
- Exciting work experience
Another benefit is that employees are not required to return to the same office after their contract expires. Of course, they may be able to find their ideal jobs in areas where they can have a private life outside of work.
Cons
- Require improving
To achieve a higher salary or keep being employed, workers must keep improving their skills or knowledge; otherwise, not only would their salary remain the same or decrease, but they could also face the difficulty of employment by creating a weaker resume. Moreover, workers have to learn and absorb effectively in order to improve and become valuable employees; otherwise, their skills or knowledge would be less deep.
- Lack of security
Those working on a temporary basis are more likely to be fired than those with long-term employment. If their employee’s skill or ability were below the expectations of the hiring manager, the employee could be fired, and the company could find someone else who would want the position. So, for a worker who wishes to have stability, temporary employment is ideal or appropriate.
- Employability
The term “employability” is used in business studies and is defined as increasing one’s chances of obtaining a successful and satisfying job at a workplace, as demonstrated by their skills, expertise, and comprehension (Pool and Sewell, 2007). Since the demise of long-term employment, acquiring employability has become critical to being hired as an employee. And its significance draws attention, particularly from graduate students. It would also be fostered through activities such as working, volunteering, and being a part of a community.
Conclusion
These two types of employment have advantages and disadvantages; however, life-long employment (commitment), which developed in Japan, has recently disappeared as a result of globalization. As a result, while a few people may be hired under the employment style, understanding each type would be very beneficial when developing a career or life plan with a goal. By doing so, motivation would be maintained at a high level, avoiding stagnation in the middle of the path to success.
Reference
International Labor Organization (2016). What is temporary employment? [online] Ilo.org. Available at: https://www.ilo.org/global/topics/non-standard-employment/WCMS_534826/lang–en/index.htm [Accessed 13 December 2022].
Madelaine (2018). Lifetime Employment and Japan’s Future. [online] KiMi. Available at: https://kimi.wiki/work/lifetime-employment [Accessed 9 December 2022].
OECD (2019). Employment – Temporary employment – OECD Data. [online] theOECD. Available at: https://data.oecd.org/emp/temporary-employment.htm [Accessed 11 December 2022].
Pool, L.D. and Sewell, P. (2007). Dacre Pool, L. and Sewell, P. (2007), “The key to employability: developing a practical model of graduate… [online] ResearchGate. Available at: https://www.researchgate.net/publication/236033421_Dacre_Pool_L_and_Sewell_P_2007_The_key_to_employability_developing_a_practical_model_of_graduate_employability_EducationthTraining_Vol_49_No_4_pp_277-89 [Accessed 12 December 2022].
