Magnit | July 30 2022 |
Employee retention management is among the highest priorities for CHROs today. But contingent worker retention continues to be underused at many organizations, for reasons that include:
Overlooking retention in this area is a mistake, however, as properly executed contingent worker retention strategies can drive a higher ROI on spend and a crucial edge on the competition. According to our exclusive U.S. Labor Market Report, organizations are waiting too long to address retention, with over 50% of workers leaving before their scheduled end-date within the first two months in 2021.
Managing contingent worker retention means going beyond traditional staffing. That means moving from the transactional, “capture and release” approach to a digitally enabled “attract and engage” approach that is geared to building and capitalizing on individual, information-rich relationships.
Developing more direct, in-depth and persistent relationships with contingent talent requires new data- and AI-driven strategies and processes across the entire contingent worker management lifecycle. If pursued, contingent workforce retention strategies can:
How a contingent candidate is identified, reviewed and engaged will have an impact on a worker’s overall experience working for an organization. A positive worker experience improves the odds of redeploying the worker in the organization and determining if a worker will become a brand ambassador.
Here are five key employee retention strategies to consider implementing across the contingent worker source-to-pay cycle.
Contingent worker retention management starts early in the sourcing/talent acquisition process with managing the candidate experience. When sourcing through staffing agencies, organizations can try to manage candidate experience in a limited way through supplier selection, supplier relationship management and ongoing communications.
Increasingly, organizations are turning to direct sourcing as an alternative sourcing channel and a way to avoid staffing supplier mark-ups. But it may also be the best way to take control of the candidate experience and the full scope of candidate data.
Adopting a leading-edge, integrated direct sourcing platform:
Contingent worker retention may be most significantly impacted over the course of a worker’s assignment at an organization. To deliver a positive contingent worker experience requires attention to culture, processes and worker data.
A work environment which values and is inclusive of contingent workers is foundational. That includes:
In terms of process, this means:
Contingent workers generally do not receive the perks or services enjoyed by permanent workers in an organization. But tailored offers for contingent workers could be introduced to enhance a worker’s experience and thus positively impact contingent worker retention.
These could include:
Organizations have typically not enabled the redeployment of contingent workers into new contingent or permanent employee roles. But contingent worker redeployment can:
Recent data suggests that on average 3% to 4% of contingent workers approaching the completion of their assignments algorithmically match open contingent roles. This pool of workers can include valuable, pre-vetted talent who would otherwise disappear and eventually move on to work for another organization.
By monitoring known assignment end dates and other internal data (such as worker skills, pay/bill rates, locations and manager assessments), specific workers can be identified for other suitable contract or permanent roles in the organization.
Since the majority of contingent workers will leave their assignments on schedule, contingent worker retention needs to extend beyond the assignment. One way organizations can do this is by creating a talent community for contingent worker alumni that would allow contingent workers:
Thoughtfully deploying contingent worker retention strategies provides a greenfield opportunity for organizations to achieve cost and performance benefits, including:
Executing these strategies will require developing new processes enabled by:
A third-party partner that has already invested in all these capabilities and corresponding expertise can make implementation of these strategies fast and cost-effective.
For more insights and strategies on ways to improve worker retention and optimize the worker experience, check out our latest Labor Market Report.
If you’re interested in learning more about how Magnit is helping organizations implement winning contingent workforce programs globally, please contact a Magnit representative at firstname.lastname@example.org.
Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.