Temporary employment agencies: List of the most important temporary employment agencies

Content

• What is a temporary employment agency?
• List of the largest temporary employment agencies
• Characteristics of temporary work
• Advantages and disadvantages of temporary employment agencies
• Advantages: That speaks in favor of temporary employment agencies
• Disadvantages: That speaks against temporary employment agencies
• Is there a red list of temporary employment agencies?

Employment relationships through temporary employment agencies are increasing continuously. In the meantime, one million employees were employed through temporary work. Reason enough to take a closer look at the list of the largest temporary employment agencies in Germany. What are the advantages and disadvantages of temporary work? And is there a red list for temporary employment agencies? The answers and important tips for choosing reputable temporary employment agencies ...

What is a temporary employment agency?

Temporary employment agencies hire out their staff for a certain period of time. Temporary or agency work is used when a company has seasonal bottlenecks, for example. If she turns to a temporary employment agency, a so-called triangular relationship arises. The temporary employment agency remains the actual employer of the temporary worker. In exchange for money, it leaves its employees to a third party (borrower). The temporary worker, in turn, concludes an employment contract with the temporary employment agency.

The legal framework for this is regulated by the Temporary Employment Act (AÜG). According to the Association of German Temporary Employment Agencies, 835,712 people in Germany are currently employed in temporary work subject to social security contributions. That corresponds to 2.7 percent of all employees.

List of the largest temporary employment agencies

There are around 50,000 temporary employment agencies in Germany. Of these, 11,600 focus on “temporary employment”. Below you will find the leading temporary employment agencies in Germany according to the renowned Lünendonk list. This is the current ranking that relates to the 2019 financial year.

Characteristics of temporary work

The employment relationship with temporary employment agencies is usually different from the classic normal employment relationship with a company from another industry:

• The employee works for a customer company.
• Alternating assignments in other departments are possible.
• The remuneration is often below the salary of the permanent workforce.
• Usually the employment relationship does not last longer than three months.
• Low loyalty due to frequent changes of work location.

When it comes to temporary employment agencies, some think of precarious working conditions. In the past, the reason for this was the low level of protection afforded to temporary workers. That led to wage dumping. Cases in which companies fired their employees and hired the same people again through temporary employment agencies caused a sensation - albeit on significantly worse terms. In order to prevent such abuse, several parts of the Temporary Employment Act have been improved:

• Only proven personnel service providers are allowed to appear as temporary employment agencies. For this they need a permit from the Federal Employment Agency.
• Serious temporary employment agencies implement the principle of equality. According to this, temporary workers have the same rights and obligations as other workers.
• Temporary workers may not be paid less than those employed by permanent staff with the same qualifications. A number of temporary employment agencies have signed up to collective agreements. However, the regulations there must not fall below minimum standards, which means that minimum wages customary in the industry must continue to be guaranteed.

Advantages and disadvantages of temporary employment agencies

The temporary work principle works. With the help of temporary employment agencies, customer companies can find new employees more quickly and cover their order peaks better. There are undeniably some advantages and disadvantages for employees too, which we explain below:

Advantages: That speaks in favor of temporary employment agencies

• Temporary employment agencies prevent unemployment. 68 percent of all temporary workers were previously unemployed or even never in employment. Temporary employment agencies offer graduates and young professionals an opportunity to start their careers.
• Employees gain experience. The assignment offers variety, as the temporary worker works in different companies. He can gain so much experience, at the same time his employment relationship (with the lender) continues. Benefits such as salary, continued payment of wages, vacation and the like remain in place even if the customer company no longer needs them.
• The low-skilled are given opportunities. More than half of all temporary workers (54 percent) have not completed any training. A circumstance that makes it extremely difficult to take up a job, since in Germany great value is placed on certificates and qualifications. In addition, the applications are usually kept straightforward. This again lowers the inhibition threshold for those employees who would have difficulties with the application process due to poor schooling or language skills.
• Temporary work can be a stepping stone. Temporary workers can prove themselves in the customer company, so that the fixed-term employment relationship leads to a takeover by the deployment company.

Disadvantages: That speaks against temporary employment agencies

• The pay is usually lower than that of the permanent workforce. Despite certain requirements, there are de facto differences.The reason for this: The salary of permanent employees (especially with collective agreements) is often based on the length of service. On this point, a temporary worker cannot be on a par with the employees, at most those who start at the same time or later. Another point is the type of work: If no training is required, it is unskilled work. From the point of view of qualified workers, this is rather unattractive work, as it has nothing to do with the content learned and is usually poorly remunerated.
• The bond with the company is lower. The frequent change in different customer companies provides a wealth of experience, but has the disadvantage that the temporary worker does not really feel "at home" anywhere. Not only does the workplace change, but also the team. This also makes it difficult to feel a sense of belonging.
• Temporary work requires a high degree of flexibility. Temporary workers have to keep adjusting to new companies, new places, new people. Sometimes the new location is far away from where you live.
• Companies risk losing knowledge. From the point of view of the borrower, recourse to temporary workers has the disadvantage that temporary workers have to be trained again and again. At the same time, this means that if the employee leaves, there is a loss of knowledge. And the constant change in employees also has an impact on the working atmosphere.

Is there a red list of temporary employment agencies?

What is meant is a list of temporary employment agencies on which the black sheep are made public. There is no red list denouncing dubious temporary employment agencies. However, there are various forums circulating on the Internet in which people report on their experiences with temporary work and certain companies. Regardless of which company an employee is employed by, there is always the option of submitting a rating via an employer rating portal.

The portals are also under criticism. On the one hand, companies can give themselves a positive appearance with fictitious employee reviews. On the other hand, frustrated ex-employees can get revenge. It remains unclear to outsiders whether the assessment corresponds to the facts. This is most likely to be recognized by mass: If the majority of reviewers speak positively or negatively about a temporary employment agency, a tendency is recognizable. If specific information is also given - for example with regard to pay or overtime - you know what to look out for.