Hiring contractors are increasingly becoming a popular choice for businesses as they provide a cost-effective alternative to hiring full-time employees. They are an answer to talent shortages, they can be hired for specific project-based service, and businesses don’t have to worry about the paying for employee benefits. As their popularity increases, so does their demand. And this means higher competition for businesses to win them over.
The importance of independent contractor retention
On the other hand, independent contractors become independent contractors because they value their independence. They don’t want to be tied down to one company and they like the flexibility that comes with working on a project-by-project basis. This means that if a company isn’t meeting their needs, they’re likely to move on to another opportunity.
This can be a challenge for companies that have come to rely on contract workers to get work done. And it can be disappointing and frustrating to hear that a hard-to-find skilled contractor decline future work with your organization.
But it doesn’t have to be a death sentence for your business. By understanding the top reasons why contractors decline repeat business with a client, you can make changes to improve retention and ensure that the best independent contractors will want to continue working with you in the future.
1. They weren’t paid on time
One of the most common complaints that contractors have is that they weren’t compensated on time. This can be a real problem if you’re relying on contractors to help you meet deadlines. If they don’t receive payment for their work in a timely manner, they’re likely to move on to another opportunity where they will be compensated for their work promptly.
There are a few things that you can do to avoid this issue. First, make sure that you have a clear payment schedule laid out before work begins. This should include when payments will be made and how they will be made (e.g., wire transfer, check, etc.).
Second, if possible, try to pay contractors in advance. This shows that you’re committed to compensating them for their work and it gives them the peace of mind of knowing that they will be paid their set price.
Finally, if you do experience a delay in payment, be sure to communicate this to the contractor as soon as possible. letting them know when they can expect to receive their payment.
2. They felt like their skills weren’t valued
Independent contractors want to feel like their skills are being utilized to their full potential. If they were hired for their particular set of skills yet they feel like their skills aren’t being used to their fullest potential, they’re likely to be disappointed. This can be a particular problem if an employer is asking them to do work that is outside of their area of expertise.
To avoid this issue, it’s important to make sure that you are clear about what skills are needed for the project before work begins. This way, you can be sure to hire the right independent contractor for the job.
Once work begins, it’s also important to give them the autonomy to do their work in the way that they see fit. After all, they are the experts. And if you try to micromanage their work, you’re likely to end up with subpar results.
3. They didn’t feel like they were a part of the team
Yes, independent contractors aren’t part of your permanent staff, but it doesn’t mean that they should like feeling like an outsider. Independent contractors who feel they are part of the team are more likely to be engaged with their work and want to continue working with your company in the future.
There are a few things that you can do to help the independent contractor feel like they’re part of the team. First, include them in team meetings (even if it’s just via conference call or video chat). This will help them feel included in the decision-making process and allow them to provide input on projects.
Second, give them a dedicated workspace (if possible) so they have a place to go to feel like they’re part of the team.
Finally, take the time to get to know them on a personal level. This will help to create a more team-like environment and make them feel like they are valued members of the team.
4. They felt like their work-life balance was thrown off
Another common complaint among contractors is that their work-life balance was thrown off by their work with employers. This can be a real problem if a company is relying on contractors to help them meet tight deadlines, or if a company’s culture is such that it doesn’t allow for a good work-life balance. Independent contractors want to feel like they have the time and energy to devote to their work, but they also want to have time for their personal lives.
There are a few things that you can do to avoid this issue. First, make sure that you respect the contractor’s time and only assign them tasks that can be completed within a realistic timeframe that you’ve agreed upon.
Second, try to provide some flexibility in the schedule so they can take care of personal or family responsibilities as needed.
Finally, make sure that you respect their time outside of work. This means avoiding calls or emails outside of normal business hours, and not expecting them to be available 24/7.
5. They didn’t feel like the company was a good fit for them
Sometimes, feeling like a company isn’t a good fit is simply a matter of personality. Maybe the company’s culture is too formal for the contractor’s liking, or maybe the business is too small and the contractor feels they would be better suited to working with a larger organization. Whatever the reason, if a contractor doesn’t feel like a company is a good fit for them, they’re likely to move on.
The best way to avoid this issue is to make sure that you take the time to get to know the contractor before they start working with you. This means having an in-depth conversation about their work style, their preferences, and what they’re looking for in a company. This way, you can be sure that they’re a good fit for your company before work begins.
Summary
Hiring independent contractors can be a great way to get the skilled labor you need without having to commit to a full-time hire. However, it’s important to keep in mind that contractors are still people, and they have the same needs and wants as any other employee.
If you can create a positive work environment for contractors, you’re more likely to retain their services and have a successful working relationship.
By following these tips, you can improve your independent contractor retention rate.
