Numerous factors affect the employment relationship. It is possible to single out some internal and external factors. The internal factors include (but are not confined to) salary, HR management, company’s corporate culture and communication. Salary is one of the central motivational tools that affect employees’ performance. The decrease of salaries (for example, the introduction of penalties) is likely to decrease the employee’s motivation and may even result in a significant turnover. Efficient HR management positively affects employees’ motivation and performance. It can be regarded as the link between the organization’s top management and employees aimed at ensuring that organizational goals will be met. The effect of organizational culture is similar to the one of the factor mentioned above. Communication is also vital as it makes goals clear, needs outlined and articulated.
The external factors include employees’ family life, governmental policies, the economic situation in the country, some trends affecting the labor market. Clearly, family life often influences employees’ performance as some family problems can result in employees’ absenteeism. The government may impose particular requirement affecting people’s commitment or lack of motivation. For instance, the introduction of certain security standards may motivate people to enter some professionals that could be seen as dangerous (and low-paid) previously. The economic situation in the country often makes people change their priorities. In the period of economic constraints, people are ready to work for lower salaries. There are periods when some professions become prestigious and the number of professionals increases, which leads to saturation of the labor market and, as a result, the decrease of salaries.
In our organization, there are different types of employment contracts signed. This helps identify particular roles and responsibilities. Each employee understands his/her responsibilities and rights as well as the scope of tasks to perform. Thus, all employees can collaborate effectively and achieve organizational goals.
Five Types of Employment
The major types of employment status contracts include fixed contracts, part-time contracts, permanent contracts, outsource contracts, self-employed people contracts. Notably, all these contracts are utilized in our organization. Permanent and part-time contracts are written agreements that highlight responsibilities and rights, salaries, ensure paid vacation and working conditions (especially when it comes to the part-time contracts). Fixed-term contracts last for a specific period. They often last until some tasks are performed or some events occur. These contracts include similar conditions to the ones mentioned above. Outsource contracts are usually signed with freelancers or consultants and so on. The employed person has limited rights and a set of responsibilities. Self-employed people or contractors usually run their own business and do not have to have an employment agreement. They take the entire responsibility for the success of their venture. However, they also can sign agreements to perform certain tasks.
Five Reasons to Identify Employment Status
It is possible to identify at least five reasons to establish the employment status. The first reason is the need to outline major responsibilities of a person. Each status is characterized by specific responsibilities and duties. To avoid any misunderstanding, the status should be identified. The second reason is concerned with taxes. Each status is related to a particular tax framework, and people pay taxes based on their earnings and responsibilities. The third reason is the need to have a strong hierarchy in the organization. The employment status can be regarded as a description of a particular role played by each stakeholder. The fourth reason for identification of employment statuses is related to people’s rights. People should understand their rights within the organization to perform their tasks and remain motivated. The fifth reason is related to the organizational culture. It is important to understand each employees’ status and the type of contract to develop the most effective corporate culture that will enable the stakeholders to achieve organizational goals and collaborate effectively.
Bibliography
Marson, J., & Ferris, K. (2015). Business law. New York, NY: Oxford University Press.
Painter, R.W., & Holmes, A. (2015). Cases and materials on employment law. New York, NY: Oxford University Press.