The use of temporary agency work is steadily increasing in Finland. Organizations use temporary agency workers to cover seasonal labour requirements and increasingly also as a buffer during business volume fluctuations. Enterprises have begun to realize that there are significant advantages in hiring temporary workers instead of putting them on payroll. Firstly the costs related to temporary agency work can be managed flexibly. Secondly services of the agencies dealing with temporary work placements bring welcome relief to the organizations’ busy and pressured schedules in production, human resources management as well as other activities.

This study focused on finding answers to the question “How do the different stakeholders understand and experience the use of temporary agency work”. The stakeholders were the workers themselves, hiring agencies, enterprises using temporary agency workers and labour unions. This report is a continuation of an earlier study “Worker on hire” (Labour Policy Studies no. 283) which focused on the effects of temporary agency work on the work community.

The stakeholders in the phenomenon were identified as the workers themselves, hiring agencies, enterprises using temporary agency workers and labour unions. Representatives of all were interviewed. The objective of the study was to build a complete picture of the phenomenon in the labour market. All the various stakeholders have their own special interests, which are associated with the different readings and meanings they give to the temporary agency work. The various viewpoints were examined within the framework of social responsibility in parallel settings. The data was also used to create an understanding of how the temporary work relationships are formed and how they differ from other work relationships. 

Ministry of Labour. Labour Policy Studies no. 302.

According to the study in hand it can be said that temporary agency work offers new opportunities for flexibility primarily because the temporary workers are flexible themselves and because legislation and monitoring are still “flexible” regarding temporary agency work. The employment contracts of temporary workers differ in many respects from full-time, part-time and short-term contracts made directly with the employing organization. Temporary work contracts are mostly drawn up according to law and labour agreements, but the fairly limited data of this study also revealed many deficiencies. These are, among others, the absence of period of notice, leaving open the end date of a short-time employment period, repeated renewing of a short-term contract, lack of holiday entitlement, non-entitlement to the organization’s benefits and bonuses, problems related to health benefits and lower salaries compared with permanent employees.

Temporary agency work markets function the same way as other markets: laws of demand and supply apply. Hiring workers is a profitable and expanding business, because organizations increasingly use hired workers. The least volunteering group, according to this study, seemed to be the workers themselves. They would rather have permanent employment. In the light of deficiencies in the terms of employment contracts it could also be said that some of these workers are potential losers in the total equation relating to temporary agency work.

Key words: temporary agency work, temporary work contract, human resource management

Ministry of Labour
P.O. Box 34
00023 Government
Finland
Phone: + 358 10 60 4001
kirjaamo.tyoministerio@mol.fi
http://www.mol.fi

01/03/2006

Riitta Viitala, Minna Vettensaari and Jutta Mäkipelkola

research

Urban Policy > Economy knowledge & employment > Working patterns

Flexible working