Contract-based jobs Vs. Time-based Job

It is normal to employ people to do work on a monthly basis. Employees work daily for fixed time and at the end of the month they get their salary. When the employees are given responsibility, then they work better. But many a times they have to be haggled with to go about their work, speed up their work. Unless, there is a motivation in them - motivation like he wants to keep the job badly or motivation to do better, motivation for heavy incentive, they will have to be pushed around. We have an experience of the same. Sometimes when there are urgent works and workforce is less, we need to bring some labors from outside who do it on 8 hour basis. They do not have any training, but even for simple jobs they will have to be supervised constantly. But once we got different types of boys. They worked on contract basis. They need to be told work, they will agree and they will work accordingly. It was a surprise to see them work. What would have easily taken some two days for two men to complete the task, these boys did it in hardly 4 hours. And they were gone. 

This is the difference that comes up between contract based jobs and time based jobs. We had heard a lot about Ludhiana goods being cheap. We first thought that they must be doing some short cuts. But their quality was also good. We checked out to Ludhiana and roamed around to find something. To our astonishment, we found there were many companies who mainly did the packing and distributorship work. They did not have any manufacturing facility. Upon enquiring, we were told that they were outsourcing the job. They gave machine to some family and this family will be given contract. The price is fixed for per component basis. The onus is on the family to produce the maximum number of components. Instead of just about going to work, these people will focus on their work and take turns so that all the family members are contributing. The total income of the family must also be good as they are working for themselves. They will be paid on how many components were produced and not on how much time they were on the machine. 

This type of contract based jobs are win win for everybody. If the component prices are low, then there will be more demand. I would advocate such a thing rather than the time based job.