Companies nowadays rarely offer long term contract to their employees. What are the advantages and disadvantages to this practice?

Nowadays, it is observed that companies do not bound their workers to stay for a long duration. In addition, people are free to take the decision to work for the company, as long as they prefer. Therefore, in this essay, we will be discussing both, the pros and cons of this practice. On the one hand, employees who are skilled tend to have ample options to switch and continue their jobs. Thus, for them, it is best to go for company that offers more in comparison. However, the immediate requirement of skilled workers leaves the firms having no hold on to their employees. Hence, the short-term bond helps the company to analyse the hired ones. For example, before joining the recruiter present the interested one with the contract, where it is mentioned they are not allowed to leave, let's say, for six months after the joining. Hence, if they do so a certain amount of money will be deducted, or, they may get black-listed from the company. Furthermore, to make sure, the business should not suffer from loss, this type of activities are performed. On the other hand, pact based workers, who are appearing to be profitable for the business may not be planning to stay in company for a long term and their plan to leave may affect the company's portfolio. As a result, forcing them to stay for less time may not be fruitful and can cause difficulties in business growth. For instance, a person who was hired as a top hierarchy worker has a better understanding of the performance of the firm. As a consequence, his leave may damage firm reputation. In conclusion, depending on the performance of the individuals the short and long term contract matters. If fewer time boundations are put on the employees not working up to the expectations helps leaders to question and omit them, whereas, long term on them leaves no option. Depending on the company work this decision must be taken.