EXPLORING THE ROLE OF ZERO HOUR CONTRACTS IN THE RETENTION STRATEGIES OF ORGANISATION

Abstract

Abstract Purpose: The purpose of this study was to explore the role of Zero Hour Contracts in the retention strategies of organisations in Saudi Arabia, examining both their benefits and challenges. Method: A qualitative survey was conducted among 25 HR managers from companies related to seasonal activities such as the tourism and agriculture sector in Saudi Arabia. On the basis of the collected primary qualitative data, a thematic analysis has been carried out to obtain significant and in-depth research findings. Result: The findings reveal that while ZHCs offer flexibility to both employers and employees, they also present significant challenges. The lack of job security and unpredictable income associated with ZHCs can lead to decreased job satisfaction and weakened organisational commitment, making it difficult for employees to remain attached to their employers. These issues are further exacerbated in Saudi Arabia, where employees typically expect stable employment with comprehensive benefits. As a result, ZHCs may contribute to higher turnover rates, particularly among workers who struggle to meet their essential needs under such contracts. Summary: This study explores the implications of Zero Hour Contracts (ZHCs), including hourly and zero-hour contracts, within the context of Saudi Arabia, focusing on the challenges and risks these contracts pose to job security, income stability, and employee well-being. The research assesses how ZHCs impact employee retention by analysing factors such as job satisfaction, organisational commitment, and the ability of employees to meet essential needs. Utilising Job Embeddedness Theory as a framework, the study highlights the complex relationship between ZHCs and employee retention, particularly in a labour market that traditionally values stability and long-term employment.