Effects of Occupational Status on Motivation, Efficiency, and Performance Quality in Local Authorities in Israel

After 40 years of adopting the neo-liberal approach by the public sectorPublic sector, this study examined the impact of this approach on public sectorPublic sector workers employed in different employment status, whether there are differences and colorations in motivation, employee satisfaction with wages, employee efficiencyEfficiency, and organizational performanceOrganizational performance. The study sampled 500 employees—277 men and 223 women—in addition to 500 service recipients (hereafter: customers). Motivation and salary satisfaction were measured using an employee questionnaire, while organizational performanceOrganizational performance was measured using a questionnaire administered to customers. EfficiencyEfficiency was measured using tools from the world of work measurement engineering. Based on the literature, we created a model and formed the following hypotheses: 1Motivation differs between employees of different employment status. 2 EfficiencyEfficiency differs between employees of different employment status. 3 There is a difference and correlation between organizational performanceOrganizational performance and different employment status. 4 Employee efficiencyEfficiency is linked to employment status. 5 There is a positive correlation between organizational performanceOrganizational performance and employee efficiencyEfficiency, with employment status being a binary variable. The findings confirm Hypothesis 1 regarding new skill acquisition and salary; they confirm Hypothesis 2, 4, and 5; they confirm Hypothesis 3 in regards to Fairness alone. Occupational resilienceResilience is therefore not necessarily required. Directly employed workers display greater efficiencyEfficiency than employees of a different employment status. This can translate into monetary loss over time. However, local authorities must first manage the issue of excessive absence which impedes service quality. Moreover, they must enhance employee motivationEmployee motivation and focus on salary and new skill acquisition.