What is IT contractor retention all about?

The importance of contractor retention

High turnover of contractors during the course of a project can generate a number of negative consequences. It leads to the loss of project knowledge and business context possessed by the departing specialist. It forces the need to re-recruit, select and implement (onboard) the new person, which generates additional costs and delays. It can negatively affect the morale and productivity of the remaining team members, who have to spend time supporting the new person. Therefore, retaining key contractors on a project is often highly desirable.

Factors affecting contractor retention

Many factors influence a contractor’s decision to stay on a project or seek new opportunities:

• Nature of the project and technology: An interesting, developing project using modern technology is more attractive and motivating.
• Team atmosphere and client company culture: Good cooperation, the feeling of being part of a team, respect and a friendly atmosphere significantly increase the desire to stay.
• Relationship with supervisor (client side): Clear expectations, regular feedback, support and a good relationship with the person who manages the contractor’s work are key.
• Financial terms: A competitive rate and timely payments are the primary, though not the only, motivating factors.
• Development opportunities: Access to training, the opportunity to learn new technologies or work on interesting tasks can increase the attractiveness of a project.
• Project and client stability: A sense of project stability and the financial health of the client company give the contractor greater security.
• Relationship with body leasing provider: Professional service, support and a good relationship with the company that formally brokers the contract are also important.
• Working conditions: Flexibility (e.g., ability to work remotely or hybrid), access to appropriate tools, work-life balance.

Activities to support retention

Both the customer and the supplier can take steps to increase contractor retention:

• Client: Nurturing a good atmosphere and integration in the team, providing interesting and developing tasks, providing regular feedback, valuing the contribution of contractors, offering competitive terms of cooperation (within the framework of the contract with the supplier), ensuring project stability.
• Provider: Maintain regular contact with the contractor, ensure satisfaction, support in solving problems, offer development opportunities (training, access to knowledge base), ensure timely payments and professional administrative services.

Retention challenges

Keep in mind that IT contractors, especially B2B ones, often value independence and project diversity. Keeping them on one project for a very long time can be difficult, even under the best conditions. The key is to find a balance between the needs of the project and the expectations and motivations of the professionals.

Summary

Retention of IT contractors is an important aspect of effective use of the body leasing model. Conscious actions by the client and the supplier, focusing on providing attractive working conditions, good atmosphere, interesting tasks and development opportunities, can significantly contribute to the retention of key specialists in the project, ensuring its continuity and stability.