Advantages and Disadvantages: Short Term vs Long Term Employment

Businessmen and women have been debating the difference between short term employment and long term employment and if one is better than the other. Such an issue deserves not to be conferred about as they both have their place in the business industry. It depends on the type of business if the manpower they need requires short term or long term employment.

Both types have their fair share of advantages and disadvantages. If a business already knows what they need, choosing between the two would be easy. Just remember that not all businesses will be able to get the most out of a specific type of employment.

Short term employment

There are businesses that can benefit from employing for short term jobs. One is that employers are not obligated to pay for the benefits of the hired employees. Second is that it is easier for employers to terminate the services of an incompetent employee by just waiting for the employment contract to expire. Another thing is that salaries given to short term employed individuals are cheaper compared to long term employees.

The disadvantages of this type are that it is very difficult for businesses to cultivate loyalty as employers need to let go and bring in another set of employees every few months. This makes it difficult to maintain and improve the quality of the product or service. Since they are contractual employees, it is not a good investment to give them training as they will only serve the business in a short time.

Long term employment

If businesses decide not to hire contractual personnel, they must be looking for permanent employees. However, this can be more expensive. Employing an individual for regularisation means the employers are obligated to provide benefits by applicable labour laws from the government. It may also be necessary to pay them bonuses and incentives. If employers want to cut the services of a bad employee short, it will be difficult for them due to the employee's rights as specified by the law. If found that a regular employee was illegally terminated, the business will likely to suffer from a lawsuit.

Regular employees tend to be loyal to their jobs since their job is secured. This helps boost their work performance and improve the quality of their products and services. Investing by giving them training is a wise decision.

It all boils down to the type of business whether a short term or long term employment is needed as there is no business that relies solely on a type of employment. Short term jobs are for those who are looking for more simple jobs the likes of working in fast food chains or labour jobs that require little to no training. On the other hand, long term employment is for those who have extensive knowledge of a specific business and experience.

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Published by: Admin Officer on Mar 26, 2019