Why Managing Your Retention Of Valued Contractors Can't Be left To Chance

Contingent workers make up approximately 25-30% of the U.S. workforce. This number is expected to expand further with more than 80% of large companies planning on “substantially increasing” their use of this flexible workforce over the next few years, according to a Intuit 2020 report. 

In fact, the age of COVID-19 has accelerated the use of contingent workers due to economic uncertainty, with 32% of organizations already actively replacing full-time employees with contingent workers as a cost-saving measure.

When your company hires a contractor it can be difficult to keep them on brand and engaged. Be ready to tackle these issues in order to retain valued contractors as the use of contingent workforces continues to grow in popularity within the U.S.

So, why can managing your retention of valued contractors not be left to chance? 

Contractors may unexpectedly leave mid-way through projects

It can be challenging for companies to keep contract workers for the full duration of projects as the contractor has little ties to the company and could unexpectedly leave if they find a job with better benefits or if they feel they are not being valued. This highlights the importance of developing and implementing a plan for contractors in order to keep them engaged. You should consider employing special retention techniques, perhaps an increase in payment if they make it to certain milestones within the project duration.

Successfully retaining contractors provides future staffing opportunities

Many companies lack the adequate skills and experience of managing contractors due to engaging full-time workers the majority of the time, meaning the retention of contractors is left to chance.

It is important to build a solid relationship by communicating regularly with your contractors as if they are your own employees whilst they are completing a project. Involving your contract worker with other staff members and regular meetings will benefit both parties and increase the likelihood of redeployment. This will provide you with a better talent pool to choose from for future employment as they would be more willing to return for future projects.

Retaining contractors saves time spent on the recruitment process 

If you build a solid relationship with your contractor this provides you with the opportunity to rehire the same individual for new projects, saving restarting the time-consuming process of searching for and hiring new suitable candidates. 

If you don't manage the retention of valued contractors and need to hire fresh candidates for new or ongoing projects, you will have to put them through vetting processes such as criminal record checks. Imagine having to go through these processes multiple times throughout projects when you have deadlines to meet? No thanks. 

Retaining contractors means less time training staff

When you hire new contractors you have to spend time training them on the background of your company and how you operate. If you retain previous contractors, they are already familiar with your companies culture, employees, expectations, and processes. In turn, your company is aware of their work style which reduces the introduction process for all parties involved. 

So, why is it important to properly manage your contractors in order to retain them? 

Overall, managing your retention of valued contractors can't be left to chance due to the likelihood of contractors seeking new opportunities and the inconveniences that will arise from having to hire new contractors. Check out our blog here on common mistakes you can avoid when managing multiple contractors, consultants, and freelancers,  in order to retain talent.