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Introduction
Computers have become an essential part of day to day operation of today's dynamic organisation. Either as a medium of communications, or the interface of the organisation's information systems. Information technology professionals are now in growing demand as a result. The global increase in the demand for IT professionals and the scarcity of competent IT Professionals shows the Law of Supply and Demand at work. IT Professionals with specific skills can command their pay and working conditions. As suggested by Rocca (001 p. 1) IT professionals are choosing short-term contracts over full-time positions with an employer, preferring to fly by the seats of their pants than worry about lack of job security or job protection.
This trend is posing as a problem for many organisations relying on IT Professionals as the resources have now come at a very high price.
The report will look at why IT Professionals prefer to do contract work rather than a permanent one, and try to suggest options and strategies to make a permanent employment attractive, a better choice for the new IT graduates.
Cheap research paper on Contract or full employment?
To secure long-term supplies of skilled workers, the larger corporations offered job security, complex pay schedules, extensive internal labor markets, promotion opportunities, and elaborate training programs (Osterman 184; Knoke 16) as in Kalleberg, Knoke and Marsden (001). In short, organisations have to create the sort of environment or offers that many contract workers would miss by being one.
Despite the popular idea that there are many jobs in IT, the truth is a little more complex, a little more yes, but no. If you are a developer/programmer, there is a lot of work going - from short contracts to permanent work. If you are a designer, there is less than ever, and if you are a producer (as I am) the situation is bleak.
Thomas Reynolds, 001
Contract Employment
The following pro and con of getting a contract job is suggested by Thomas Reynolds (001, p1.)
Advantages of Contract Works
•the opportunity to earn big dollar in a short term
•A diverse or extensive CV helps to get the next position, as opposed to someone who has spent most/all of their career working their way up in one company.
•You are generally treated very well, from hardware to regular coffee.
•You can often set your own hours, work from home and dress as you please.
•You can treat non-working periods as holidays.
•You can work a few days a week and earn enough to do quite well.
•Meet new people and new environment every time.
•Get new skills faster through fast paced working experience.
•Exposed to rapid technological changes challenge.
•Some contracts can be extended or even become permanent work.
Disadvantages of Contract Works
•If you work a short contract (less than three months), you must start looking for your next role immediately. This can mean giving less than your best, especially in the last few weeks, with interviews, emailing resumes etc.
•If you work a longer contract (three to 1 months), the transient nature of IT, all your old contacts and recruitment agents will have moved on or forgot you. This happened to me recently.
•Employers can place unrealistic expectations on contractors, forcing you to work longer (unpaid) hours and, with no sick pay or holiday pay, no work equals no money.
•Security. If you are young with no large financial commitments, the IT contracting life rocks. If you arent working all the time, you can do a short course, study part time or do a fallback job such as bar work. As the responsibilities increase and a constant cash flow is required, you will need to find either ongoing contracting or a permanent role.
•Discrimination. The older you are, the less likely you are to be seen as an innovator. Whether the young are innovative or not, the perception is all-important.
•harder to obtain bank loans
•Once the contract is signed there is little room for negotiation on pay or work condition
•On and off employment, there is always a chance on being temporarily unemployed
•Not covered by award
Permanent Employment
Advantages of Permanent Employment
•Generally job security. If one is good at it, the company will keep the employee
•Organisation sometimes provide training
•Company benefits, such as sick pay or holiday pay
•Constant financial flow
•There are rooms for re-negotiation, such as pay increase, better salary package
•Covered by award
•Employer funded superanuation
•Paid leave
•opportunity to get up the corporate ladder
Disadvantages of Permanent Employment
•Monotonous working environment
• skills and experience expand slower in a fixed environment
• to 5 job, fixed to the time, it is boring and inflexible
•
Attractive Permanent Employment
•interesting or attractive pay and working condition
•further education skill improvement self development through training
•attractive projects
•good organisational structure
•strong team work
•job security
•flexibility
Strategies to Attract IT Graduates
Job Security
the era that traded loyalty for job security is virtually dead. The new contract is there will never be job security. You will be employed by us as long as you add value to the organization, and you are continuously responsible for finding ways to add value. In return, you have the right to demand interesting and important work, the freedom and resources to perform it well, the pay that reflects your contribution, and the experience and training needed to be employable here or elsewhere. OReilly (14) as cited in Cawsey, Deszca and Mazerolle (16).
Short-term contracting offers IT workers many benefits. Security is not always one of them. One of the few motivators in an organisation is job security. Permanent employees have always assumed that the organisation will keep their employees on the employment. Thing is, as soon as the profitability falls, the organisation would start cutting staff out. Employees feel threatened if they see a lot of staff turnover.
Organisations should offer job security, for the sense of security would motivate workers to be loyal to the company. Without job security, contract works would be more attractive than permanent employment.
Training
Kalleberg, Knoke and Marsden (001) suggest that the use of contingent workers is not limited to clerical employees, but embraces such high-skill occupations as engineering, computer programming, and drafting. In part, the rise of a contingent workforce reflects the corporate drive to lower costs. But, companies also turn to outside labor suppliers and subcontractors whenever their high performance work systems require specialized skills that are not readily available within the firms pared-back core workforce.
This goes to show that with contract jobs, organisations expect that their contract workers are really skilled and know everything about solving the problem. Contract workers do not get the training they needed.
An organisation would be more attractive if it can expand the skills and knowledge of the employees. New graduates see training as an opportunity to expand their knowledge and skill, and to familiarise themselves with the organisational environment. In return, training will produce employees with tailored skills matching the organisation's needs and requirement.
The training, however, does not have to be directly related to the workers' job. Other training to improve communications and employee relationship would be beneficial for the organisation and the employees.
Halliday agrees that many organisation see experiential outdoor training as a way of bonding the fragmented team, in the hope of increasing team spirit and boosting sales figures. Its an increasingly in-demand trend in Australian workplaces, with apparent benefits for anyone needing to implement trust-building, improve communication skills and extend networking opportunities between employees
Recognising Employee Performance
Content perspectives on motivation (Daft and Marcic, p. 41) suggest that one of the few basic motivators is self-appreciation or self-esteem. As cited in Fiorini (001, p. 1) ANZ Bank is responding to this issue by working to instill a talent mindset at all levels of the organisation. It has implemented a program that identifies high performers with potential, accelerates their development and implements initiatives to retain talent.
ANZ Bank recognises the importance of having an attractive employee-value proposition in order to retain staff. This is done through a range of initiatives, which include share ownership; options; family friendly policies; pay for performance; and a firm view on non-performance.
Such privileges are not available to contract workers. The feeling of self-achievement, recognition, appreciation will ensure people remain motivated and challenged in their work.
Talent Development
McCann, as cited in Fiorini (001), says there is a clear trend towards a competitive advantage being derived from intangible assets such as intellectual property, brands and talent. However, at a time when the need for great talent is growing exponentially many companies are finding hiring and retaining talent harder than ever. Ninetypercent of the 7000 executives stated that talent management is increasingly difficult.
Fiorini (001) suggests that ANZ Bank is responding to this issue by working to instil a talent mindset at all levels of the organisation. It has implemented a program that identifies high performers with potential, accelerates their development and implements initiatives to retain talent.
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