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Agency Employment

The Benefits and Drawbacks of Agency Employment


The job market is constantly evolving, and there are various options available for job seekers nowadays. One of the employment options that have become increasingly popular in recent times is agency employment. An agency employee is someone who works through an employment agency or staffing agency. In this type of employment, you are employed by the agency, but you carry out your work at a client’s organization. The agency is responsible for paying you, and you have agreed to their terms and conditions of employment while working under contract.

The aim of this article is to provide an insight into agency employment. It will discuss the benefits and drawbacks of agency employment so that job seekers can make informed decisions when choosing between agency and permanent employment.

The Benefits of Agency Employment


Agencies offer job seekers flexibility in terms of work location, work hours and choice of assignments. As an agency employee, you can choose to work full-time, part-time, or on a temporary basis, depending on your availability and preference. This flexibility is especially useful for those seeking temporary or seasonal work, or for people looking to re-enter the workforce after an extended break.

Opportunity for gaining experience and building your CV

One of the significant benefits of agency employment is the opportunity it offers to enhance your skills and gain experience in various industries and organizations. This experience and knowledge contribute towards building your resume, thereby making you a more attractive candidate for your next job. This diverse experience and exposure can also help expand your network, which can be instrumental in finding new work opportunities.

Salary and Benefits

Agency employees usually enjoy competitive salaries and benefits compared to their in-house colleagues. This is because their pay and benefits packages are negotiated by the agency, rather than the client organization themselves. Furthermore, agencies may offer medical insurance, 401k plans, and other benefits that may not be available to in-house employees. These benefits can make working as an agency employee more attractive for some job seekers than permanent employment options.

Job Security

Although paperwork provisions of agencies may not guarantee job security, they do offer some level of protection to agency employees. The agency takes responsibility for personnel issues such as dismissal, facilitating settlements, and even offering paid time-off in some cases. In some instances, agency employees gain access to unemployment insurance as well. This job security can be a huge factor for those who are looking for work during what is a difficult or uncertain period in the market or their life.

The Drawbacks of Agency Employment

Low Job Security

Although agency employment provides some job security, employees are still considered temporary laborers. The positions offered by such agencies are vastly temporary, and depending on the industry, may be seasonal or temporary. This means that agency employees are the first to go when a company experiences financial difficulties or when projects are completed.

Less Job Stability

While gaining experience in various industries is a significant benefit of agency employment, it also means that agency employees may lack stability and consistency in their work environment and teams. As they move from one temporary job to the next, they may experience a lack of cohesion and sense of belonging to one organization. This can lead to lower job satisfaction levels and increased stress when moving to new environments repeatedly.

Loose Workplace Culture and Communication

Unlike most permanent employees, agency employees do not get the chance to partake in company culture, community involvement and team building activities. While such activities may seem insignificant, they are essential in building inter-departmental relationships, cohesiveness, and collaboration. Agency-employed-laborers may be unable to access information given in staff meetings, which may create communication problems and put the contractor out of the loop.

Pays Lacking Insurance Benefits

Most agency workers enjoy the flexibility offered by the agency, but this often comes at a cost of insurance benefits. Often, benefits come at a cost, and agencies may only be able to offer the most basic medical insurance due to financial constraints. Agencies may also not offer vacation pay, although most agencies award holiday pay at a higher rate to compensate.


In conclusion, agency employment can offer flexibility, competitive salary and benefits, and opportunities for growth. However, it is not without its drawbacks, including less job security, temporary work environments, and lack of participation in company culture. Therefore, it is important for job seekers to weigh their options carefully before choosing between agency and permanent employment. Job seekers must find the employment option that best meets their needs and preferences, keeping in mind the potential risks and benefits that come with each.