Temporary Agency Work, the Changing Employment Relationship and its Impact on Human Resource Management

The increasing use of temporary agency work in Germany has implications for the nature of the employment relationship. The notion of a clearly defined employer-employee relationship becomes difficult to uphold in triangular relationships like in the case of temporary agency work where the agencies employees are working at the site of the client company. The blurring of the boundaries of organisations and of the employment relationship leads to ambiguities that affect Human Resource Management. Given the dominance of new institutional economic approaches in the analysis of temporary agency work, it is not surprising that the ambiguities and the effects and consequences of the use of temporary agency workers on the Human Resource Management of client companies have been underestimated and not been explored in detail. This paper wants to close that gap by adding a Human Resource Management perspective to the current debate in order to gain insight on the role of Human Resource Management in triangular relationships. By building on theoretical discussions and empirical studies the implications of the use of temporary agency workers for the Human Resource Management of client companies are analyzed with a special regard to commitment and identification with the client company. Different suggestions how to organize Human Resource Management instruments for temporary agency workers are presented to illustrate the value of a diverse Human Resource Management for different groups of the workforce.