This study surveyed the characteristics of human resource management (HRM) with regard to contract-based employees’ and discussed how the relationship between HRM and the shift to the core workforce in the firms.
The empirical results indicated that (1) the employee categories system had a positive effect on the shift of the contract employees to the core workforce; (2) with respect to the relation between the wage management and the shift to the core workforce, the equality of the wage level between contract employees and regular employees indicates a positive effect on the increasing volume of the shift of contract employees to core workforce. Moreover, the equality of the wage system between them indicates a positive effect on the quality of the shift; and (3) when equality of a wage level and wage system are simultaneously promoted in the firm, a negative effect is indicated on the quality of the shift to the core workforce.
This study makes two major contributions to the field. First, the firm applies a considerably different HRM for contract employees than for regular employees. However, firms must prepare their HRM architecture for the shift of contract employees to realize effective utilization of those employees in the future. Second, the analysis indicates the way in which the wage management of the contract employee is different from the perspective of the firm taken toward the utilization policy of the contracted employees. However, when the volume and quality of the shift of contract employees is enhanced, division of job between them is created, and thus firms will start to consider wage management separately between them. Therefore, at this stage, there might be no need to consider the equality of wage system between contract and regular employee.
