WIREDGOV

Using temporary agency workers (TAW) improves firm performance, but at the cost of permanent employees' wellbeing, according to a new study by the National Institute of Economic and Social Research.

Profitability is higher in workplaces using TAW and those using TAW experienced greater improvements in their performance than "like" workplaces that did not use temporary agency workers.

However, the presence of TAW at the workplace is associated with lower job satisfaction and higher job anxiety among permanent employees at the workplace. The effect is not driven by the presence of TAW in the employee's occupation, as might be expected if employees were primarily concerned about a threat to their jobs arising from substitution by TAW. Instead, it is the presence of any TAW at the workplace that matters. One possible interpretation of these results is that workplace regimes which harbour any TAW are more labour intensive and perhaps more cost conscious that workplace regimes which do not resort to TAW.

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