Is the unplanned attrition of your contingent workers low and in control? Or is it very high?
At DCR Workforce, we counsel our clients to examine contingent worker retention rates as an indicator of worker engagement. While the most common business response to rising levels of unplanned attrition is a revision of pay rates, research has shown, time and again, that pay rates are not the sole cause of unplanned attrition. In fact, an increase in pay rates for those workers in the lower end of a pay range resulted in a significant increase in retention in two-thirds of the cases; but an increase for those in the upper to middle part of the range does not have an appreciable effect on worker retention.
Recently, our analyst team researched the issue of unplanned attrition among contingent workers. We isolated a number of causes that drive a worker’s decision to leave a position before contract completion.
What could a contingent worker program be missing that causes workers leave their assignments mid-way? Based on our research, we have isolated the key factors – beyond dissatisfaction with compensation – that drive away contingent workers. Our research focused strictly on individuals who elect contingent assignments, but leave one engagement with the intention of pursuing a different temporary engagement. For the purposes of this study, we excluded individuals who departed to take on permanent employment.
Contingent workers, continuously keeping an eye out for their next assignment, depend on their reputation. Most do not casually walk away from engagements for fear of being blacklisted by the staffing industry. When this occurs, you need to find out why.
When a dissatisfied contingent worker prematurely ends an engagement, the client is penalized twice. Replacements must be sourced, onboarded and brought up to speed. All of this comes at a cost measured in recruitment dollars and project delays. In addition, social media makes it easy for a dissatisfied worker to share their experience and label you as a poor employer.
Savvy companies today monitor unplanned attrition rates, and explore root causes. Exit interviews are conducted with all departing workers, and companies then circle back with the staffing agencies to gather any relevant insights that the worker was reluctant to share with the company, but did discuss with the staffing agency.
To learn more about how you compare to your peers in terms of contingent worker retention, or need help developing an attrition reduction initiative, contact us.
Mail (will not be published) (required)
× seven = 21
Thanks for Subscribing to DCR Blog.