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3.1 Models of Employment

In recent years, companies have adopted different models of employment to properly adjust with challenges in the business environment. These models are discussed below:

• Traditional Model: In this era of sudden high or low growth, most businesses are cautious of risks involved in hiring fresh graduates or new employees who need long-term training to achieve full potentials. This traditional model of employment is also known as the Net Present Value (NPV) model and it is characterized by high investment in employee training, payment of wages, opportunities for career growth, and retirement benefits. NPV is synonymous with “job for life” and “high returns on investment (ROI).” In this employment model, employees are mostly loyal to the company, and managers often have the luxury of developing their workers for high-yielding performance over time (Najdawi et al., 2011).
• Non-traditional or Part-time Model: Instability of local and global markets led to the abandonment of NPV model and acceptance of a cost-effective “job for now” strategy, which promotes downsizing of the workforce to reduce operating costs (Kehoe & Wright., 2010). The new shift allows companies to pay for what employees are offering, without provision for pensions and other additional benefits. This model is employment has been criticised in the labour market, particularly because it leads to decreased loyalty and distrust of employers (Matthias et al., 2017).
• Non-traditional or Freelance Model: This employment model encourages people’s discretionary effort to partner with business organizations, innovate, produce quality goods/services, and influence market trends from any location. The freelance model or “career-for-me model”, thus, allows companies to source suitable employees in a particular segment and use them to create value. Also known as the Total Value Asset model, this strategy thrives on a skill enhancement, mutual learning and reciprocal relationship idea which benefits both employers and their workers (Schrunder et al., 1994).