✨  Don't miss out! Register for our Employee Appreciation Webinar scheduled for 29th February.🎖️
✨  Don't miss out! Register for our Employee Appreciation Webinar scheduled for 29th February.🎖️

Register now

Live Webinar: Secrets to Building a Successful B2B2C Growth Flywheel
Save your spot now

The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

Visit Hr Glossaries

Employee agency refers to the capacity of employees to make autonomous choices and take meaningful action within their work environment. It encompasses the ability of individuals to influence their own work outcomes, contribute to decision-making processes, and shape the direction of their careers.

What is an employee agency?

An employee agency, often referred to as a temp agency or employment agency, is a business that matches job seekers with employers. These agencies typically maintain a database of job opportunities and potential candidates, facilitating the hiring process for both parties. They may specialize in temporary, contract, or permanent placements across various industries and job roles.

Employee agency plays a crucial role in driving organizational success. Empowered employees are more motivated, engaged, and committed to their work. They possess a sense of ownership and responsibility, leading to increased productivity, creativity, and innovation. Moreover, organizations that prioritize employee agency foster a culture of trust, collaboration, and continuous improvement.

What is the meaning of staffing agency?

A staffing agency is a type of employment agency that focuses on providing companies with temporary or permanent staff. These agencies maintain a pool of qualified candidates and match them with client companies based on their needs. Staffing agencies play a vital role in helping companies fill short-term or project-based positions and assisting job seekers in finding suitable employment opportunities.

What is the meaning of a recruitment agency?

A recruitment agency is similar to a staffing agency but often focuses on actively seeking and recruiting candidates for specific job roles within client companies. Recruitment agencies may offer services such as talent sourcing, candidate screening, and interview coordination to assist companies in finding the right candidates for their open positions. They typically work on a commission or fee-based model, charging clients for their recruitment services.

Listen, recognize, award, and retain your employees with our Employee engagement software  

What is an agency employee?

An agency employee refers to an employee employed by an employment agency (such as a staffing or recruitment agency) and is subsequently placed with a client company to work on a temporary, contract, or permanent basis. Agency employees may work for short-term assignments, seasonal projects, or long-term placements depending on the agreements between the agency, the client company, and the employee.

What are the factors that influence employee agency?

The factors that influence employee agencies are:

  • Organizational culture: The culture of an organization significantly influences employee agency. A culture that values autonomy, empowerment, and open communication encourages employees to take initiative, voice their opinions, and contribute their unique perspectives.
  • Leadership styles: Effective leadership is pivotal in nurturing employee agency. Leaders who empower their teams, delegate authority, and provide support and guidance foster a sense of ownership and accountability among employees.
  • Workplace policies and procedures: Well-defined policies and procedures can either facilitate or hinder employee agency. Flexible policies that allow autonomy and experimentation empower employees to take risks and explore new ideas. Conversely, rigid rules and bureaucratic processes stifle creativity and innovation.
  • Technology and innovation: Technology plays a dual role in shaping employee agency. On the one hand, it provides tools and resources that enable employees to work more autonomously and efficiently. On the other hand, the rapid pace of technological change can create uncertainty and anxiety, affecting employee morale and confidence.
  • Employee well-being and satisfaction: Employee agency is closely linked to well-being and job satisfaction. Organizations prioritizing employee wellness, work-life balance, and professional development create an environment where employees feel valued and empowered to thrive.

What are the benefits of employee agency?

The benefits of employee agency are:

  • Increased motivation and engagement: Empowered employees are more motivated and engaged, leading to higher productivity and performance.
  • Enhanced creativity and innovation: When employees are free to experiment and explore new ideas, they are likelier to unleash their creative potential and drive innovation within the organization.
  • Improved problem-solving and decision making: Empowered employees are better equipped to solve problems and make informed decisions, as they have a deeper understanding of the issues at hand and feel a sense of ownership over the outcomes.
  • Higher job satisfaction and retention: Employees who feel empowered and valued by their organization are more likely to experience job satisfaction and remain loyal to the company, reducing turnover rates and retaining top talent.
  • Positive organizational culture and reputation: Organizations prioritizing employee agency foster a positive culture of trust, collaboration, and transparency, enhancing their reputation as employers of choice in the marketplace.

What are the strategies for fostering employee agency?

Strategies for fostering employee agency are:

  • Empowering leadership: Developing leaders who empower and inspire their teams is essential for fostering employee agency. Leaders should provide guidance, support, and autonomy while encouraging individuals to take ownership of their work.
  • Clear communication channels: Open and transparent communication channels facilitate the exchange of ideas, feedback, and information, empowering employees to voice their opinions and contribute to decision-making processes.
  • Encouraging risk-taking and learning from failure: Creating a culture that embraces risk-taking and views failure as an opportunity for growth fosters employee innovation and creativity.
  • Providing opportunities for skill development and growth: Offering opportunities for continuous learning, skill development, and career advancement empowers employees to take charge of their professional development and pursue their goals within the organization.
  • Creating a culture of trust and transparency: Building trust and transparency within the organization establishes a foundation of mutual respect and accountability, enabling employees to feel confident in expressing their ideas and concerns.

What are the challenges and pitfalls of employee agency?

The challenges and pitfalls of employee agency are:

  • Resistance to change: Resistance to change is a common barrier to fostering employee agency, as employees may feel threatened by unfamiliar processes or uncertain outcomes.
  • Fear of failure: Fear of failure can inhibit creativity and innovation, as employees may be reluctant to take risks or explore new ideas due to the potential consequences of failure.
  • Lack of resources or support: A lack of resources or support from leadership can undermine employee agency, as individuals may feel constrained by limited access to tools, training, or guidance.
  • Overemphasis on control: An overemphasis on control and micromanagement stifles employee autonomy and creativity, leading to employee disengagement and dissatisfaction.
  • Inconsistent Implementation: Inconsistencies in implementing policies or practices related to employee agency can create confusion and frustration, undermining trust and morale within the organization.

What are the future trends and directions in employee agency?

The future trends and directions in employee agency are as follows:

  • Role of technology in shaping employee agency: Advancements in technology will continue to influence employee agency, providing new opportunities for remote work, collaboration, and automation.
  • Evolution of leadership models to support employee agency: Leadership models will evolve to prioritize empathy, collaboration, and empowerment as organizations recognize the importance of nurturing employee agency in driving innovation and resilience.
  • Globalization and diversity considerations: Globalization and diversity considerations will shape how organizations approach employee agency, as they strive to create inclusive cultures that value diverse perspectives and experiences.
  • Ethical implications and social responsibility: Organizations will be increasingly held accountable for their ethical practices and social responsibility efforts, requiring them to consider the impact of their decisions on employee agency and well-being.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

How much do staffing agencies make per employee?

The revenue generated by staffing agencies per employee can vary significantly depending on the types of placements (temporary, contract, and permanent), the industry served, the geographic location, and the agency's business model. Generally, staffing agencies earn revenue by charging a markup or fee on the hourly or annual salary paid to the agency's employees. This markup can range from a percentage of the employee's wage to a fixed fee agreed upon with the client company. It's difficult to provide an exact figure as the revenue per employee can vary greatly among staffing agencies.

Quick Links

Employee Engagement solutions

Recognised by market experts