While having a job with decent compensation is the most important thing, one thing many Filipino job seekers often overlook is whether or not they will be working as an in-house employee, or as part of an agency, or under some other contractual arrangement. Many of the top hiring companies in the Philippines, for example, are essentially agencies or contractors for other businesses. While the job description of in-house and agency jobs are may look similar, the dynamics of the actual job are often extremely different. This can lead to new hires having the wrong expectations going in, which can often lead to job dissatisfaction.
To make things more complicated, there are job listings that may advertise openings for prestigious companies when in reality, the new hire will be working for an agency that contracts for that company, and not directly for the business itself.
Below, we’ll share some of the benefits and drawbacks of working in-house compared to working as a contractor through an agency. If you’re looking at different job openings, knowing the difference betwee in-house and agency jobs and what to expect can make a difference.
In-house employment
In-house employees work directly for an employer. This arrangement often comes with the following benefits in the Philippine setting:
1.) Usually a better fit
Hiring a regular in-house employee is a major commitment for a business, especially in the Philippines. Employees that are specifically selected to work in-house are often closely vetted to see if they are a good cultural fit. This usually means in-house work tends to offer closer familiarity between coworkers as well as a sense of esprit de corps. In the Philippine context, this often means better morale and happiness in the workplace.
2.) Tends to improve the breadth of professional knowledge within an industry
Generally speaking, in-house employees tend to have more responsibilities that are not in the job description. Over time, this tends to give in-house employees a better understanding of how more parts of the business work together. In contrast, most agency workers and contractors have very narrowly defined responsibilities, which can hamper prospects for future growth.
3.) Better job protection
While this isn’t universal, regular in-house employees generally have more job protection compared to agency workers. For instance, they cannot be removed from their job without due process and they tend to have more benefits compared to an agency worker doing the same job.
Some drawbacks of in-house employment include:
1.) Less exposure to other ways of doing business
Because they tend to focus on their own company, in-house workers tend to be less exposed to how other businesses work. If there isn’t sufficient attention given to employee development, their skills are more likely to deteriorate or become outdated over time.
2.) Expected to do more work outside the job description
As mentioned earlier, in-house employees tend to have more responsibilities. While this has some benefits, this can often mean that they are likely to be assigned tasks that they do not excel in. This can further dilute their expertise in areas they are good at, which can be bad news, especially for those that want to pursue a technical career path rather than management.
Agency employment
Agency workers do not work directly for a company. Rather, they work through a third-party agency that handles relationships with different client companies. Some advantages include the following:
1.) Exposure to more ways of doing business
If you want to be exposed to a variety of business structures, strategies, and philosophies, working in an agency is one of the fastest ways to achieve this. This is especially true if your agency assigns you to work with multiple clients at the same time.
2.) Usually better for specialization
If you desire to master a specific part of your profession, spending some time in an agency is often the fastest way to do it. Because agencies tend to focus on delivering high output within a specified service level, agency employees tend to become proficient at certain jobs far faster than most in-house employees.
3.) Responsibilities tend to stay within the job description
These days, work contracts are taken more seriously than ever, especially when outsourced agencies are concerned. Agencies are generally disincentivized from giving client businesses too many freebies or out-of-scope outputs simply because they may not have the bandwidth to do so — especially if they serve multiple clients. As a result, agency employees can expect their work to more closely match what’s advertised in the job description.
Some drawbacks of agency work include:
1.) Difficulty getting a wider sense of your industry
While agencies tend to have some of the best specialists, the nature of their work often means that they often lack qualified generalists that can bridge gaps between different business operations. For instance, while an experienced in-house marketer probably has a decent grasp of different areas or types of marketing such as SEO, SEM, content marketing, influencer marketing, and traditional media, an experienced agency employee is more likely to be highly specialized in one or two areas at the expense of most of the others. This is because contracts tend to indicate very defined roles and service-level agreements, which often necessitates specialization. This often leaves agency employees overly specialized with severe gaps in their operational expertise.
2.) Higher workload
Agency workers may not wear as many hats as their in-house counterparts, but they often tend to have more intense workloads, which means they often get paid less per unit of output. While there are certainly exceptions, agency jobs are generally considered to have a more demanding pace.
Summary
Generally speaking, agency and in-house employees tend to perform the same kinds of work. However, the differences in their relationships with their employers can drastically change the overall work experience, even between positions that are identical on paper. When looking for job opportunities, it often pays to do your homework as the difference between agency and in-house work is enough to make an impact on your career and work-life balance.
