Work Organizational Outcomes of the Use of Temporary Agency Workers

Abstract

This article examines work organizational dynamics in workplaces using temporary agency workers. Previous research has principally either emphasized one effect, the division into core and periphery, or criticized this effect. This article contributes to a more nuanced analysis of how the work organization of user firms is affected by the use of temporary agency workers. Crucial factors influencing the outcome include: how agency workers are integrated into the work organization; the skills required for the work performed by agency workers; the duration of assignments; the induction time; and the access to competence development. Based on ten Swedish cases, our analysis shows that the use of temporary agency workers has three different outcomes: (1) The Core and Periphery outcome is in line with previous research on ‘the flexible firm’ whereby temporary agency workers are assigned simple work tasks and user firm employees perform advanced work tasks; (2) the All Core outcome entails using agency workers for the same advanced work tasks as user firm employees. Contradicting the theory of ‘the flexible firm’, our study shows that temporary agency workers contribute to functional flexibility; (3) the third outcome, All Periphery, occurs when the work organization is adapted to the use of low-skilled agency workers who are easily introduced into the workplace and easily terminated. However, adapting the work organization to the use of temporary agency workers also influences user firm employees, leading to deskilling and a deteriorated work organization for all workers at that workplace.