Introduction: Much of the literature indicates that human capital is often the most valuable resource for an organization. A clear trend is emerging: the increase in contract work (Grant 2013). In an increasingly globalized economy, currently recovering from a major crisis, organizations are seeking to minimize costs to maintain competitiveness. The quest for cost minimization is multifaceted. One option has been to change the demographics of the workforce from employee to contractor. For many companies, workers are a key ingredient for ongoing success. This shift from the traditional employer/employee relationship to an employer/contractor relationship could have broad implications for group dynamics and add a new dimension to previous organizational motivation tactics. Therefore, it is important to examine both content theories and process theories with respect to motivation and particularly how it applies to the emerging contractor workforce trend. Increase in Contractor Workforce: During the 1980s, several countries implemented labor market reforms with the intent of lowering unemployment levels by deregulating employment and promoting the use of fixed-term contracts (Amuedo-Dorantes and Malo, 2008). These employment arrangements differed from traditional permanent employment assignments in that they provided limited benefits and eliminated severance costs. Contract employees are favorable from an organizational perspective as they can work as a buffer to address temporary changes in employment needs due to changes in demand for products or projects, or to fill vacancies on a temporary basis (Amuedo-Dorantes and Malo, 2008 ). Furthermore, partly fueled by cost advantages, fixed-term contracts were widely used by companies for additional purposes, to… Psychology July 1979 19:43-55, available from: Emerald [12 December 2013].Grant , Tavia, 2013. The Changing Canadian Labor Market: The Rise of Contract Work. http://www.theglobeandmail.com/report-on-business/economy/canadas-shifting-job-market-the-rise-of-contract-work/article581926/ Accessed December 11, 2013. Hamilton, Peter, 2013, Motivation, handouts distributed in Managing People at Durham University Online, November 2013.Herzberg, F. (1987), “Again: How to Motivate Employees?”, Harvard Business Review, 65(5), 109 -120Huczynski, Andrzej A.& Buchanan, David A 2013, Organizational Behavior, 8th edition, Pearson Educational Limited, Harlow, UK. Latham, G.P. (2004), “The Motivational Benefits of Goal-setting”, Academy of Management Executive, 18(4), 126-129Judge