September 10, 2014

Discussion: Is temporary agency work a stepping stone to permanent employment?

Susan N. Houseman’s article on temporary agency work triggered a recent debate on LinkedIn.

Houseman’s piece looks at whether temporary agency work is an effective stepping stone to regular employment. The evidence she analyzed suggested that, while temporary agency work may lead to regular employment for some, it generally does not help workers move to regular, open-ended contracts. Policymakers should therefore use it selectively in reemployment programs, and as a way to improve workers’ lives.

The debate on LinkedIn centered around whether temporary work contracts were more advantageous for employers or employees. Robert Ewalt, Exam Development Manager at the Institute of Management Accountants, argued that: “the worker can see the work environment in detail, and the employer can judge the worker much more confidently.”

He also made the point that workers undertaking temporary agency work can build skills and experience for their resume.

Peng Toh, International Business Consultant, wrote that temporary agency work could benefit both parties, but acknowledged that employers probably benefit more. He continued: “For employees, temping is seldom associated with career development. But trap or no trap, the alternative to temping for them is unemployment.”

Toh also praised the flexibility benefits of temporary agency work, and suggested that workers could use their spare time to be entrepreneurial.

Hugh D. Stevens, Director of the University of Maine's Knowledge Transfer Allowance, expressed interest in this line of thought: “Is it possible to create policies that encourage those kind of outcomes? Can we foster a situation where the employee sees the situation as an opportunity for their own benefit?”

Sudhanshu Shekhar Mahanayak of DGM made the point that temporary agency work is more attractive for employers because of the rising cost of regular employment in developing countries.

What do you think? Share your thoughts on LinkedIn or on our Twitter page.