The Pros And Cons Of Temporary Employment

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“Temporary jobs becoming a permanent fixture In US”, laments a news article as global and local labour market dynamics continue to evolve and the issue of contingent employment emerges as one of the most significant trends (Rugaber, 2013). Just between 1985 and 1998 the percentage of temporary contract employees in the European Union increased by 50 per cent from 8.4 per cent to 12.8 per cent (De Witte, 2003). In the Netherlands, in the third quarter of 2014 alone, and consistent with the now long time downward trend in permanent contract employment and increase in temporary contract employment, the number of temporary hours worked grew by 2.5 per cent making it the most significant growth in the four years since 2010 (Statistics Netherlands,…show more content…
From the macro level, economies recovering from a recession, for instance, are more likely to be boosted by the relatively affordable and market demand determined employment temporary workers, it is argued. Others have argued that a recovery fueld by temporary employment does not make much difference on the macroecomic performance because contingent employees are generally paid less and, therefore, spend less to be able to have a significant stimulus impact towards recovery of the economy. From the organizational or employer point of view mainly considerarations of cost and flexibility take precedence. Temporary employment is often considered from its strategic advantage point of view. Among other things, organization can adjust and deploy their labour force “flexibly”, depending on market demand. From a cost saving point of view they can lower employment cost such as insurance and pension fund contribution. Disadvantage of temporary employment is knowledge sharing as temps withhold knowledge from their permanent colleagues to remain useful or as the organization withholds knowledge for fear of knowledge leaving the organization with the temporary employee. From the point of view of the employee the debate ranges from ethical consideration to dangerous working conditions. Some studies have documented that temporarary employees earn
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