Spending way too much time dealing with turnover? Hire more contractors, suggests study
Building the best team with the skillset to successfully deliver results should be the utmost priority for all companies, says report.
Labor market troubles strike again. A new survey shows that senior executives spend 40% of their time every day dealing with employee turnover and more than half (53%) have a problem hiring full-time employees.
The Kantata report, The Changing Dynamics of the Modern Workforce, talked to 1,500 service professionals who identified several factors contributing to high turnover, which include:
- Healthcare benefits are not competitive (42%)
- PTO and vacation days are too difficult to accumulate (42%)
- 401(k) benefits are not competitive (39%)
- Lack of a continuing education to support employees’ professional growth (35%)
“Considering the number of full-time employees that made the jump over the past year to freelancers, and how many others are tempted to, business leaders should consider expanding their talent pool of independent contractors and investing in the technology needed to effectively integrate them into the business,” says Kantata CEO Michael Speranza. “Building the best team with the skillset to successfully deliver results is the utmost priority for all companies in professional services.”
In tight labor market, 4 in 10 full-time employees are considering the shift to freelancing
The report also identifies steps companies can take to reduce churn, build networks of independent contractors to create competitive advantages, and spend more of their time on growing their businesses.
Ninety-two percent of full-time equivalents said they would feel more loyal to companies that invested in their professional development goals. Similarly, 76% of independent contractors indicated they would like the companies they work with to provide perks such as paying for certifications, continuing education and master-classes.
“This finding is important because it sheds light on how companies can build long-lasting relationships with freelancers instead of scrambling to find people who have requisite skill sets on a project-by-project basis,” says Speranza. “Independent contractors want to work for companies that let them perform work that they find engaging, develop new skills, and build their expertise – and they have plenty of options to choose from.”