Human Resources Management (HRM)


1. Read article

2. Identify key facts/information provided

3. Prepare a written summary of the facts/information provided. You are condensing the article down to one or two paragraphs. This requires rewriting, rewording of the key facts/information provided.

4. Maximum length is 1/2 page single spaced.


Article Summary

Many companies in America today hire fewer workers than they did several years ago. The trend is encouraged by the current contractor model. Large enterprises nowadays outsource most of the jobs that do not affect customers directly. These companies have replaced their employees with contract workers.  The reason behind is to cut down on costs and have more control. The trend has led to the rise of flexible contract companies. They have replaced the employee base in large enterprises. Consequently, the result is having more contract workers than the companies’ employees. Many Americans do not have a particular job category they fit into because they work as contractors.


The good thing about contractors is that they help firms in minimizing the size of their staff and hence they can adapt to new designs and changes. However, this is not a positive thing to the workers as they may end up earning low wages as a result of these changes.  Large firms such as Bank of America Corp have the larger percentage of their workforce outsourced. Economists argue that having these contracted companies reduces the burden of companies hiring and firing labor force. Therefore the companies are only interested in the final product to their consumers.

Nevertheless, few contract workers with a few unique skills set get hired as permanent employees in the big companies. For example, a company like Google hired a contractor to be a full-time employee. Although the managers would not comment on the issue, the contractor points out that they needed someone with his skills otherwise the projects they were working on would not be successful. The rate at which the employees are reducing and contract and sub-contractors companies are coming up it is not likely to reduce in future. This, according to the article, heralds the end of job security and, by extension, the employee.

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