How to Make Your Temporary Employees Give a Better Work in the

Age of Industrial Revolution 4.0: A Triggering Factor

Elisabet Siahaan

Faculty of Economics and Business, Universitas Sumatera Utara

Keywords: Social Needs, Self-Esteem, Self-Actualization, Work Satisfaction, Employees’ Performance, Temporary

Employees

Abstract: The age of Industrial Revolution 4.0 has caused many changes and disruptions to companies, especially in

technology, strategic planning, policy, even the requirement of human resources. In order to survive market

competition, companies have to build their competitive advantage which even more fierce than before.

Industry 4.0 forced companies to improve their efficiency, thus they have to prepare themselves so that the

revolution will resulted an opportunities to optimize their performance. Optimizing performance level will be

achieved through effectivity and efficiency. As one of efficiency measurement, many companies hire

temporary employees than permanent employees. This is remain true in term of financial and turnover.

Therefore, it is beneficial to analyze the factors that can improve temporary employees performance. This

study aimed to explore and analyze the effect of social needs, self-esteem needs, self-actualization needs and

job satisfaction on temporary employees' performance level. It is important to address employees' needs as it

will stimulate their behavior at work. The companies' ability to meet or exceed their employees need and keep

them satisfied with the work can make the employees felt satisfied as valuable and belong to the companies.

In return they will give their best at work which improve overall performance, profit, and reputation. The

study was conducted at PT Nielsen Company. A number of 110 temporary employees of 150 total temporary

employees were selected to participate in this study. The sample selection was under random sampling

method. Data were collected through self-administered questionnaires. The relationships of each variable was

evaluated with multiple regression analysis. The result showed that each variables positively affect temporary

employees' performance. The most dominant factor to improve performance is employees' social needs.

Therefore in order to improve employees' performance which will improve companies performance, each

company have to be able to identify and meet the employees' needs and keep them satisfied at work, especially

their social needs.

1 INTRODUCTION

The success of a company can be determined by

several factors and one of the most dominant factors

influencing this success is the human resource factor

working at the company (Al-Hawary, 2015; Menefee,

Parnell, Powers, & Ziemnowicz, 2006). The success

or failure of a company in achieving its stated goals

is highly dependent on the success of management in

managing the human resources involved in the

company's activities.

Despite the important role of human resources for

the company, the use of outsourcing as an entry of

human resources for companies is currently

developing (Johnson, Wilding, & Robson, 2014).

One form of outsourcing carried out is by

implementing employee partnerships. Partner

Employees are temporary employees who are

employed by the company for a job without a contract

for a certain period of time or receive a certain income

and depend on the number and duration of projects

worked.

Each partner employee must be responsible for

the target set by the company without regard to the

conditions and field conditions that must be faced by

the partner's employees themselves. While employees

remain in the middle and top management whose job

is to manage and test data that has been collected from

the field by Partner employees. Thus signify the

importance of partner employees.

A growing body of research suggests that

temporary workers can have negative effects on their

Siahaan, E.

How to Make Your Temporary Employees Give a Better Work in the Age of Industrial Revolution 4.0: A Triggering Factor.

DOI: 10.5220/0009215804350441

In Proceedings of the 2nd Economics and Business International Conference (EBIC 2019) - Economics and Business in Industrial Revolution 4.0, pages 435-441

ISBN: 978-989-758-498-5

435

permanent co-workers (Anwar & Aslam, 2011).

Permanent employees often resent the presence of

temporary employees, feeling that their work is

unprofessional or low quality, which then forces the

permanent employee to compensate for the temporary

workers’ poor performance (Ongera & Juma, 2015).

In short, it seems that the presence of temporary

workers can lead to deterioration in the work-place

environment. This deterioration may offset the

benefits that organizations are hoping to reap through

the use of temporary employees. Thus, it is important

to understand the conditions under which temporary

employee usage is associated with significant costs

(Sheikh, Naveed, & Iqbal, 2011).

The unique of human resources is in fact it related

to human being. Humans are driven by motivation at

work. So, companies that can provide high motivation

to employees to work by meeting their needs will

increase work performance where employees will be

productive so that it affects the overall performance

improvement of the company including increasing

company profits. For this reason, motivation is

needed from superiors to subordinates or fellow

colleagues in positions or positions of the same level.

Companies must realize that motivation is the main

thing and has a big enough influence in improving

employee performance and achievement. In this

regard, every company must be sensitive to this in

order to achieve the company's goals more effectively

and efficiently (Ali, Bin, Piang, & Ali, 2016;

Shahzadi, Javed, Pirzada, Nasreen, & Khanam,

2014).

Motivation is formulated as behavior that is

shown on the target. Motivation is related to the level

of effort done by someone in pursuing goals that are

closely related to employee satisfaction and job

performance (Lai, 2011). That is, the higher a person's

motivation at work, the higher their work

performance. In order to motivate employees to work

hard not only arises for reasons of economic needs in

the form of money, but also in the form of

appreciation, harmonious relationships with

colleagues, adding insight through training and the

role of leaders in leading the company. Based on

people's motivation to work is to meet their needs, the

company needs to understand what needs are driving

employee behavior to improve employee

performance.

According to Maslow, the theory of needs

consists of physiological needs, the need for security,

social needs, the need for appreciation and the need

for self-actualization (Aruma & Enwuvesi Hanachor,

2017). The needs above can not be separated from

human life, and this also applies in the organizational

environment.

In general, a person will try to meet his

physiological needs in advance which includes the

need to survive, namely food, clothing and shelter so

that a person will naturally work to meet these goals.

Likewise with the need for a sense of security which

could include economic security and security when

using tools to carry out work and a sense of security

from threats removed from work (Singh & Behera,

2016). To achieve a sense of economic security, a

person decides to work and the type of work done by

partner employees does not use excessive muscle or

energy and also does not use heavy equipment that

must be considered safe for its use.

The problem that arises in the use of partner

employees is the lack of emotional ties between

employees and the company. The status of employees

who are not permanent employees makes job

insecurity happen. This condition will generally

encourage a decrease in the level of work motivation

which generally will lead to a decrease in work. This

condition is always a concern and strived to overcome

it immediately.

This study aims to evaluate the effect of work

motivation and job satisfaction on employee

performance. By understanding this condition it is

hoped that this research will help in making decisions

in motivating employees, especially employees who

are temporary in order to be able to provide optimal

performance.

2 LITERATURE REVIEW

Employees’ performance is the work of quality and

quantity achieved by an employee in carrying out

their duties in accordance with the responsibilities

given to him. Performance refers to the level of

achievement of the tasks that make up an employee's

work. Performance reflects how well employees meet

the requirements of a job (Sonnentag & Frese, 2005).

An employee's performance is an individual thing,

because each employee has a different level of ability

to do his job. The management can measure the

employee's performance based on the performance of

each employee.

Maslow's theory of need divides needs into five

levels, ranging from psychological needs, safety

needs, social needs, esteem needs, and self-

actualization needs (Kaur, 2013). The first two of the

list has already been commonly implemented or given

to human resources within the organization as their

basic needs. However there were little to none evident

EBIC 2019 - Economics and Business International Conference 2019

436

that the firm gave social needs, esteem, and self

actualization needs to temporary employees as they

were originally not the same part with the

organization .

After the physiological needs are met and we

already feel safe, then the next is our need to feel love

as well as a sense of belonging, or social needs

(ZAMEER, Alireza, NISAR, & AMIR, 2014). What

is meant is the human need to feel needed to be

considered as a member of his social community.

These needs can include the desire to be friends, or to

have a partner and offspring, the need to be close to

his family, and also the desire to give and receive

love. In a business context, this need can be met by

providing opportunities for employees to work

together and socialize. This can be done by assigning

group work or it can also schedule joint recreation.

These needs include the need for feelings of being

accepted by others, the need for feelings of respect,

the need for feelings of progress and achievement.

When the social needs of employees are met,

employees will be able to work with a calmer and

happier heart because they have a good relationship

between employees and with superiors and will

optimize the work of the employees themselves and

will automatically improve employee performance

Hypothesis 1: Social needs has a positive and

significant effect on temporary employees’

performance

Once they feel that their physiological needs are

being met, their security is guaranteed, and that they

are citizens of their social community, they will have

esteem needs, or needs to be valued. This need is the

needs of his ego for the desire to excel and have

prestige. This can include the desire to be respected

by others, fame, recognition, attention, reputation,

and ownership status. In addition to external needs,

humans will also need confidence in themselves,

competence, achievement, independence, freedom,

and mastery. In a business context, we can realize this

need by recognizing the work that our employees do;

when they do something good or when they succeed,

we must convince them that we recognize that

achievement. In addition, we can also give

promotions, status, or praise in front of other

employees. Award is a form of appreciation for an

achievement given by individuals and institutions.

The higher the status and position of someone in the

company, the higher the need for self-esteem in

question.

The need for appreciation has a very large

influence on employee performance. Appreciation is

not only about the material but also non-material, can

be in the form of praise and recognition. Awards

given by the company are good and fair, so the

employee's performance is also increasing. If the

fulfillment of rewards needs is getting better the

employee's enthusiasm for work will increase and this

will affect performance. The main purpose of the

award is to attract qualified people to join the

organization, keep workers coming to work, and

motivate workers to achieve high-level performance.

Hypothesis 2: Esteem needs has a positive and

significant effect on temporary employees’

performance

After all the above needs are met, then we will

achieve the need for self-actualization, or self-

actualization needs. This need is about proving and

showing yourself to others. To do that, we will

develop ourselves as much as possible all the

potential we have. To be the best we can be, that is

the purpose of this need. Not many people can reach

this stage, because many of us have unmet needs. The

needs of this level are different from previous needs.

We no longer want to be valued by others, nor do they

want their friendship or love. At this stage, what we

do is to prove to ourselves. In a business context, to

meet our employees who are at this stage, what we

can do is to give them the opportunity to use new

skills or challenges that can help them learn and

develop.

The need for self-actualization is the need that

drives a person in accordance with his ambitions

which include growth, achievement of potential, and

self-fulfillment. The need for self-actualization by

using abilities, skills and optimal potential to achieve

very satisfying work performance. The need for self-

actualization as a desire to become more and more of

himself as full of his own abilities, becomes anything

according to his ability. Employees who can actualize

themselves can improve work performance and have

an impact on employee and company performance.

Therefore, if the company is able to meet the needs of

employees' self-actualization, it will be able to

improve employee performance.

Hypothesis 3: Self-actualization has a positive and

significant effect on temporary employees’

performance

Job satisfaction is an emotional attitude that is fun

and loves its workers. Job satisfaction at work is job

satisfaction enjoyed at work by obtaining work

results, placement, treatment, equipment and good

How to Make Your Temporary Employees Give a Better Work in the Age of Industrial Revolution 4.0: A Triggering Factor

437

work environment. Satisfaction outside of work is

employee job satisfaction enjoyed outside of work

with the amount of remuneration that will be received

from his work, so he can buy his needs. Job

satisfaction will be achieved if the needs of

employees are met through work. Where job

satisfaction is a happy emotional state or positive

emotions that come from the assessment of one's

work or experience. With high job satisfaction will

improve employee performance towards the

organization where they work.

Hypothesis 4: Job satisfaction has a positive and

significant effect on temporary employees’

performance

3 RESEARCH METHOD

3.1 Research Time and Characteristics

The focus of this research is to find the evidence that

motivation and satisfaction might affect temporary

employees’ performance, thus this research were

conducted on associative approach. This research

proposed four independent variables including social,

esteem, and actualization needs as well as job

satisfaction which might affect job performance on

temporary employees. Thus, we evaluate the

temporary employees as our population. This

research was conducted on PT Nielsen Indonesia,

Medan Branch. This research took place on March to

June 2019.

3.2 Participant

PT Nielsen Indonesia, Medan Branch employed a

number of 150 temporary employees or partner

employees during the reseach period. This study

involved 110 temporary employees which mainly is

field workers.

3.3 Data Collection Method

Self-administered questionnaires were employed

during our research. The questionnaire in this study

was prepared based on a theoretical study and

adjusted to the consumer's condition that was the

object of research. Therefore, the research

questionnaire requires a validity and reliability test

before it is applied as an instrument for research data

collection. The validity and reliability testing of this

instrument was carried out on 30 temporary

employees outside the research sample later.

Evaluation of the validity of the questionnaire is done

by face validity by adjusting the list of questions

raised with existing theories, as well as the Pearson

correlation which shows the correlation value of the

total score on each variable. The instrument reliability

test was conducted by evaluating the Cronbach's

alpha value on each variable proposed in this study

3.4 Data Analysis Method

We employed multiple linear regression to evaluate

the impact of each kind of motivation and satisfaction

on its dependent variable, job performance.

4 RESULT AND DISCUSSION

4.1 Participants’ Characteristics

Characteristics of respondents by sex were carried out

to obtain the distribution of characteristics of the

temporary employees which were employed based on

gender. The characteristics of these respondents can

be used to evaluate participation of workers based on

each gender.

Tabel 1. Respondents Characteristics

Gende

of Sample %

Male 67 60,91

Female 43 39,09

Total 110 100,00

Table 1 provide information that the proportion

between female and male respondents in this study

was relatively similar to the 3:2 ratio between male

and female. Thus, the involvement of male workers

in the temporary workers were a little bit higher than

female participation. It is to be expected as the nature

of Indonesian culture nurture that male worked for

livelihood as female work to maintain the household

activities. In addition, most of our temporary workers

were field workers which this research is suggested

that male were more preferred in field works than

female workers.

Most of our participants in this study were on age

range under 30 years (63,64%). This characteristics

suggested that the main temporary workers forces

were inexperienced or less experienced workers

which were given task to accumulate experience at

work.

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4.2 The Regression Analysis

This research model uses four independent variables

and one dependent variable. The independent variable

used in this research is a form of top three of

Maslow’s theory of needs and satisfaction. The

dependent variable of this study is job performance of

the temporary workers or employees. A total of 110

temporary workers were involved in this study.

4.2.1 Residual Normality Test

The normality test aims to find out whether the

intruder or residual variable regression model has a

normal distribution. Good data is data that has a

pattern like the shape of a bell on the histogram

diagram. The data normality test used in this study is

the Kolmogorov-Smirnov test. Criteria for testing one

sample using a one-sided test that is by comparing the

probability with a certain level of significance that is

if a significant value or probability <0.05, then the

distribution of data is not normal and if a significant

value or probability> 0.05, then the data is normally

distributed. Evaluation using graphs is used to

support statistical evaluation results.

Figure 2. Residual Histogram

Figure 2 provides information that in the

histogram graph, the distribution of residual data

leads to bell-shaped; in this case, the residual data can

be categorized as normally distributed. P-P plots are

applied to evaluate this situation more clearly.

Figure 3. Normal P-P Plot

Figure 3 shows that data residuals are spread

evenly along diagonal lines. This condition further

supports that data residuals are normally distributed.

Thus, the assumption of normality in residual data has

been fulfilled.

4.2.2 Multicollinearity Test

Symptoms of multicollinearity can be seen from the

value of tolerance and VIF (Varⅰance Inflate Factor).

Both measures indicate the variables which are

strongly affecting other dependent variables.

Tolerance is to measure the variable variables of the

dependent variables which are not explained in terms

of the other variables. The value that is used for

Tolerance> 0.1 and VIF <5, then there is no

multicolon.

Table 2. Collinearity Analysis

Model Collinearity Statistics

Tolerance VIF

(Constant)

Self-Actualization ,555 1,802

Self Esteem ,445 2,249

Social Needs ,493 2,027

Satisfaction at Wor

,903 1,107

a. Dependent Variable: Performance

Table 2 showed evidence that there is no problem

of multicollinearity of data on the independent

variables of the study. Each element of needs and

satisfaction is independent, so that the variables

proposed in this model do not affect each other.

4.2.3 Multiple Linear Regression Analysis

The results of the regression conducted in this study

are summarized as follows:

Table 3. Regression Result

Model Unstandardized

Coefficients

Standardize

Coefficients

t Sig.

B Std.

Erro

Beta

(Constant) ,015 ,393 ,039 ,969

Self-

Actualization

,193 ,079 ,204 2,439 ,016

Self Esteem ,238 ,082 ,271 2,894 ,005

Social Needs ,312 ,086 ,324 3,645 ,000

Satisfaction

at Wor

,244 ,089 ,180 2,742 ,007

Dependent Variable: Performance

F-statistic = 30,082

-value < 0,05

)

usted R-S

uared = 0,576

How to Make Your Temporary Employees Give a Better Work in the Age of Industrial Revolution 4.0: A Triggering Factor

439

Table 3 provides information that the proposed

motivation theory and job satisfaction is able to

explain 57.6% of the conditions of the temporary

workers’ performance. Thus, there are 42.5%

influences from outside the model currently

proposed. The significance level of the F-test on the

proposed model <0.05 (Table 3) which indicates that

together, each element of motivation and satisfaction

plays a role in influencing the performance of the

temporary workers’ performance.

Regression models that can be formulated based

on the results of this study are:

Y = 0,015 + 0,312 Social Needs + 0,238 Self-

Esteem + 0,193 Self Actualization + 0,244

Satisfaction + e

This study indicates that every element of higher

level of Maslow theory of needs and job satisfaction

has a positive and significant influence on the

performance of temporary workers. Nonetheless, our

modes suggested that social needs, statistically, has

the greatest influence in influencing their

performance.

The regression coefficient on the social needs is

0.312. This indicates that for every increase in one

unit in this kind of needs, the level of their

performance at work tend to increase by 0.312 units.

The t-test indicates that the t-count (3,645) is greater

than the critical value of 1.65 or a significance value

of 0,000 <0.05 which concludes that statistically there

is a positive and significant influence of social needs

on the level of temporary workers’ performance level.

This need can only be fulfilled by others outside

of the employee itself, such as requiring good

acceptance by the company's work team that will

create a sense of comfort at work that will affect

employee performance. Besides that there is a need

for mutual respect between colleagues in the

company both superiors to subordinates, or vice versa

or between fellow colleagues at the same level of

work. Partner employees will need good acceptance

by the company work team and require mutual

respect between colleagues in the company. If social

needs continue to be improved properly it will be able

to make employees excited to work because they

think that they are needed in the company so that it

will have an impact on improving employee

performance and vice versa if social needs are not met

properly it will make employee morale to work

decreases.

The regression coefficient on the self esteem

needs is 0.238. This indicates that for every increase

in one unit in this kind of needs, the level of their

performance at work tend to increase by 0.238 units.

The t-test indicates that the t-count (2,894) is greater

than the critical value of 1.65 or a significance value

of 0,005 <0.05 which concludes that statistically there

is a positive and significant influence of self esteem

needs on the level of temporary workers’

performance level. The more they can achieve these

kind of needs, the more motivated which ultimately

lead to a better performance as whole.

Inadequate fulfillment of the needs of temporary

employees is generally due to the lack of rewards in

the company and also due to incentives given by the

company to Partner employees that are not in

accordance with the capabilities of Partner employees

so that it affects employee morale. Apart from the

material aspect, the lack of attention and appreciation

in the form of praise from superiors when employees

work exceeds company expectations can reduce

employee morale to work more actively which results

in declining performance. Therefore the need for

rewards influences the employees of Partners in

working so that it will affect the performance of the

employees themselves.

The regression coefficient on the self

actualitzation needs is 0.193. This indicates that for

every increase in one unit in this kind of needs, the

level of their performance at work tend to increase by

0.193 units. The t-test indicates that the t-count

(2,439) is greater than the critical value of 1.65 or a

significance value of 0,016 <0.05 which concludes

that statistically there is a positive and significant

influence of self actualization needs on the level of

temporary workers’ performance level.

Actualization needs that are not met in employees

will affect the performance of the employees

themselves. Employees tend to be less happy to learn

new things related to work because they feel

comfortable with their daily work so sometimes they

feel reluctant to improve themselves when making

mistakes. The need for self-actualization will affect

the motivation of the employees themselves to work

their best and always be able to complete work in

creative ways.

The regression coefficient on the temporary

workers’ satisfaction at work is 0.244. This indicates

that for every increase in one unit in this value, or the

more they felt satisfied at work, the level of their

performance at work tend to increase by 0.244 units.

The t-test indicates that the t-count (2,742) is greater

than the critical value of 1.65 or a significance value

of 0,007 <0.05 which concludes that statistically there

is a positive and significant influence of job

satisfaction on the level of temporary workers’

performance level.

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440

5 CONCLUSIONS AND

SUGGESTIONS

In an effort to build performance optimization of

temporary employees, meeting the needs of

temporary workers is very important. Each element

of the workers' needs contributes a significant

positive effect on the achievement of performance.

Despite the fact that temporary employees do not

have a real bond to the company, it is important for

companies that want to achieve the best performance

to still pay attention to the needs and job satisfaction

levels of these employees. Those who feel valued and

feel satisfaction at work will feel stronger bonds and

encourage behaviors that optimize performance.

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