The psychological impact of agency worker utilisation
| Pages | 622-641 |
| Date | 30 September 2014 |
| DOI | https://doi.org/10.1108/ER-05-2013-0058 |
| Published date | 30 September 2014 |
| Author | Simon Toms,David Biggs |
| Subject Matter | HR & organizational behaviour,Industrial/labour relations |
The psychological impact of
agency worker utilisation
Simon Toms and David Biggs
School of Natural and Social Sciences, University of Gloucestershire,
Cheltenham, UK
Abstract
Purpose – Agency work represents a unique form of employmentthat has received increasedattention
in recent years. Supporters of the agency employment industry have cited increased accessibility and
flexibility atan individual and organisational level, yet criticshave highlighted disparities intreatment
and the limited protection afforded by the contract. Previous psychological studies into the working
experiences of these employees have forwarded a series of findings that have frequently conflicted, so
this paper begins by exploring research into the areas of motive, job satisfaction, job security, and
organisationalsupport. The purpose of this paper is to better understand how this form of employment
can psychologically affect agency workers by focusing upon these key areas.
Design/methodology/approach – The study’s research design incorporated 25 semi-structured
interviews with agency workers, recruitment consultants, and representatives from third-party
employers. These interviews were then supplemented by longitudinal data from follow-up interviews
conducted with agency workers from the initial sample. During the study, the researcher undertook
a number of agency working assignments, and ethnographic analysis of diary extracts represented a
third source of data.
Findings – Results highlighted the importance of motive, as it was found to influence how agency
workers viewed their employment. The lack of obligation in temporary contracts was perceived
to lead to isolation from permanent colleagues, increase vulnerability, and reduce job security and
organisational commitment.
Research limitations/implications – Findings strongly supported the claim that the pre-assignment
motives of individuals had a significant impact upon their resulting experiences. Agency workers
employed in longer-term assignments reported greater integration into the organisation, resulting in
increased commitment towards the third-party employer,and improved relationships with permanent staff.
Originality/value – The current research incorporated multiple perspectives to create an increased
understanding of the agency employment industry and its impact upon individuals.
Keywords Job satisfaction, Temporary workers, Organizational commitment, Employee relations,
Job security
Paper type Research paper
Introduction
Agency workers are not a new phenomenon, as they have existed in Europe since at
least the eighteenth century, although the modern temporary work industr y did not
emerge until the late 1940s and early 1950s (Storrie, 2002). Agency workers fall into the
category of “temporary worker” as their tenu re within a company is for a limited
period of time (Biggs and Swailes, 2006). When looking to apply a definition to this
temporary worker category, the unusual contractual agreement that agency workers
possess becomes prominent, as agency workers can be defined as individuals: “[y]
who are employed by or have a contract for services with the employment business and
who work on assignment with a third party hirer” (BERR, 2009, p. 15).
The number of agency workers in the UK is significant. The Labour Force Survey
(LFS) divides workers into permanent and temp orary; and agency workers represent a
subgroup of the latter. The LFS indicates that 0.94 percent of the UK’s total workforce
(LFS, 2009) can be placed in this category, although the relatively short-term nature of
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0142-5455.htm
Received 31 May 2013
Revised 22 January 2014
28 March 2014
Accepted 31 March 2014
Employee Relations
Vol. 36 No. 6, 2014
pp. 622-641
rEmeraldGroup PublishingLimited
0142-5455
DOI 10.1108/ER-05-2013-0058
622
ER
36,6
agency work ensures that estimates are often varied. Despite their unique contractual
arrangement, their p osition on the periphery of the workforce means that the
issues facing agency workers are often shared by temporary workers in general.
The employment contract is of a triangular nature whic h is a keyc haracteristic of this
worker group; as illustrated in Figure 1.
As a result of their triangular contract, the employment status of agency workers
can be rather complex and often not clear (McMullen, 2007; Storrie, 2002), as it can
become uncertain whether the individual is a member of the third-party employer or
the employment agency that supplied them (Forde and Slater, 2005; Williams, 2004).
In UK employment law, there is an important distinction between “employees” and
“workers”, and the classification of many agen cy staff as “workers” means they are
excluded from the entitlement to importan t employment rights, like unfair dismissal
and redundancy protection, which are only available to “employees” (TUC, 2007).
Recent legislative change has attempted to address this disparity. The Agency
Workers Directive (AWD) (or Agency Workers Regulations) came into force as UK
employment law in October 2011, and seeks to provide these workers with equal
treatment in relation to the pay and employment rights of comparable permanent
workers after completion of a 12-week qualifying period in a given assignment.
The roles of employees on the periphery of the workforce are often dependent upon
levels of demand and economic fluctuation, and the global financial difficulties over
recent years have only increased the insecurity of these positions. Research in the
Netherlands found that: “In economic downtu rns, people with a tempo rary contract
can be laid off without having to be paid premiums to laid off personnel and without
the risk of strikes or other types of protests” (de Gilder, 2003, p. 589). De Gilder (2003)
went on to claim that: “In times of economic recovery, organisations that are uncertain
about the strength of the recovery may hesitate to employ people on a permanent basis,
whereas others can adapt to the situation by hiring temporary employees until it is
clear that expansion is permanen t” (p. 589). Research by Felstead and Gallie (2004)
argued that the continued growth of non-standard working arrangements throughout
the developed world suggested that organisations may be segmenting their workforces
along these lines in order to use non-standard workers as a buffer to protect the
privileges enjoyed by those in the “core” of the organisation. Such employment
Agency
worker
Third party
employing
organisation
Employment
agency
Supplies agency workers
Works for
Pays for agency worker services
Reports to for pay
Supervises on
daily basis
Pays wages and
monitors progress
Source: Biggs and Swailes (2006, p. 131)
Figure 1.
The triangular
relationship of
agency working
623
Agency worker
utilisation
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