Employees’ perception fixed employment contract: a case of the University of Dar es Salaam

The major objectives of this study was explore the perception of employees on fixed employment contract and its implication on their performance. More specifically the study intended to investigate the current incentive plan, explore the system of performance evaluation and identify the condition obtaining under fixed employment contract at the University of Dar es salaam. The information was gathered using a survey, which utilized random sampling. Eighty employees of the university were involved in the survey: 60 employee completed questionnaires and 20 employees participated in interviews. The findings show that incentives like high salaries, allowances and other benefits provided by the employer can have a positive and significant contribution to the access of fixed employment contract policy. Therefore, the hypothesis that fixed employment contracts can lead to better results if they go together with significant incentives was not rejected in this study. However the findings did not support directly the hypothesis that the system of fixed employment contract can be counterproductive if there is no clear evaluation process. This is attributed to the way fixed employment contract was introduced and the manner in which it is being practiced. Similarly, it was observed that fixed employment contract does not lead to high tumover due to pressure for performance which is normally associated with such contracts. The main reason raised was that fixed contract employees normally leave the university not because of the nature of their employment contract, but because they were looking for greener pastures elsewhere. Job security does exist still as contracts are renewed continuously, almost automatically. However, it was found that the majority of employees do not have a positive perception on fixed employment contract as it does not provide for better pay, benefits and conditions of services relative to what permanent employment offers. The study recommended that in the search for excellence and organizational effectiveness through implementation of new employment practice, public sector organizations, need to plan effectively, define clear objectives for intended changes and manage the change process effectively based on good practice.