As a staffing agency, the product you’re selling to clients is the quality of your talent. The more successful your contractors, the more likely you are to retain existing clients and earn new ones. But you can’t continue to make sales and ignore the health of your contractors. Your relationship with your clients can only grow if your contractors are solidly embedded in your agency.
There’s no question—taking care of your contractors is good for business.
The way in which contractors impact an agency’s bottom line is the topic of several current studies, the results of which will be announced in 2018. There are three main hypotheses being investigated:
Let’s see how they relate to agencies and their contractors.
In 1989, freelancers made up 6% of the workforce. A recent study by LinkedIn and Intuit anticipates that by 2020, freelancers, entrepreneurs, contractors and others who work for themselves will make up 43% of the workforce. Why has it risen so quickly? The two biggest factors, according to the study, are:
As more are seeking better work-life balance and more control over all aspects of their lives, those seeking contracting positions will grow.
With more and more workers entering into contracting arrangements through staffing agencies, the success or failure of those contractors is critical to agency success. According to our research, less than half of all contractors stay on with an agency through multiple engagements. Pair that number with the estimated $10,000 to $20,000 it costs an agency to replace a contractor and the problem becomes obvious. The only way to effectively grow your agency and its client base is to lean heavily into making each contractor a success within your agency.
As noted above, the cost to replace one contractor who leaves your agency is between $10,000 and $20,000, but that figure is just the tip of the iceberg. When a contractor leaves, especially if it is before the end of an engagement, they take with them client goodwill, the risk of poor reviews, and a decrease in the number of potential referrals.
There are three areas which, over the last few years, have shown increases in revenue when applied to contractor success:
Want to learn more about contractor care? Sense will be hosting a live webinar on February 22 titled, “The ROI of Contractor Experience.” Learn more and register HERE.
Sense can help you take advantage of the success of each contractor. How? Make an appointment now to talk with one of our representatives.