Demystifying the use of contractor employees in South Africa: a case study of Eskom KZN OU.

Abstract

Many organizations employ external contractors in their daily business operations. The interactions between these host organisations and external contractors can either contribute to the success or failure of these organisations. Eskom’s Kwazulu-Natal Operating Unit makes use of several external contractors and this is the case in the Electrification Department. For the past five years, the department has not been able to achieve their sales quotas. Essentially, the more customers that get electrified the better returns of revenue for the organization. This study investigates the effectiveness of communication between management and contractors, how contractors are outsourced and the use of internal resources in relation to external resources. A survey was conducted among 200 employees chosen for the research in all areas within KZN with the goal of covering all areas within the province. The quantitative method was chosen for the survey. The survey instruments used was an emailed questionnaire with the utilization of a software called QuestionPro for feedback from the respondents. The data collected was analysed using Statistical Package for Social Science (SPSS). From the findings, the respondents tend to agree that management must maintain good communication with external contractors about organizational targets. Respondents also agreed that assessments must be done internally with more focus on skills and experienced contractors. There needs to be a good working relationship between internal and external resources, however there are pros and cons when these two are compared. Findings and recommendations are discussed and areas for further study identified.