57% of recruiters say that their top challenge is the competition for great talent. When it comes to contractor care, every recruiter and account manager knows that a good experience can make the difference between hiring great talent and scraping the bottom of the barrel.
Most CEOs and other executives are motivated by revenue, growth, and ultimately success. So we’re going to provide you with the facts and statistics that you need to show your CEO how a contractor care program will help your business grow and become more profitable over time.
In my experience, there are three main ways to convince your CEO to provide the funding and support you need to implement a successful contractor care program. Simply show them how a great contractor care program will…
- Increase contractor loyalty, which lowers attrition and increases redeployment rates
- Increase your contractor referrals
- Increase your client value
Now, let’s dive in and explore how each of these reasons will motivate your CEO to start a contractor care program today.
1. Lower contractor attrition rate
On average, the contractor turnover or attrition rate for staffing firms in 2016 was 352%. That’s an astounding number.
The turnover rate measures, on average, how many people fill a certain role in one year’s time. A higher number means you have a higher turnover rate. The higher your turnover rate, the higher your cost for recruiting and training. You can calculate your firm’s turnover rate with the calculator found on the American Staffing Association’s website.
A good contractor care program helps to lower your attrition rate by engaging contractors and making sure they’re happy with their jobs. When a contractor knows that you care about them and that you’re there to help solve any problems they have, they’re more likely to complete their placements and take new gigs, lowering your attrition or turnover rate.
A high attrition rate also correlates to unhappy contractors. Lowering your attrition rate likely means that you’ll have happier, more engaged contractors. When your contractors are engaged, they’re more likely to stick around. A contractor care program is what ensure that contractors are happy, feel supported, and are getting help to solve problems that they face.
Your contractor care program should include:
- A way to measure contractor satisfaction, which is often done through NPS surveys
- Automated and human check-ins with contractors
- Engagement events and techniques to make contractors feel like a part of your company’s team
- Training and growth opportunities
43% of employees leave their job because there’s a lack of career growth. Show them where they can grow and they’ll want to join your company. Throw all of those other elements into your contractor care program, and you’re going to see a rise in the satisfaction of your contractors.
With 52% of recruiters expecting that their budget will stay the same next year, the field for implementing a great contractor care program and attracting the best talent is wide open. Convince your CEO today to design and start a contractor care program and you might be surprised just how much growth you’ll see in your ability to lower attrition rates, attract better contractors, and raise contractor satisfaction.
2. Increase contractor referrals
A contractor care program helps to increase contractor referrals, which has a two-fold benefit for your company:
- It attracts better quality contractors
- Lowers recruiting costs
Both of these benefits can help to funnel money away from recruitment toward contractor care and increasing the company’s profit. Furthermore, it attracts contractors that might be passive with regards to their interest in a staffing company but will apply because their friends say so. This is a talent pool that none of your competitors can attract.
A contractor care program is a selling point that attracts better and more reliable contractors. It shows contractors that the company cares about them and has their best interests at heart. Presenting a high-quality brand to candidates helps your staffing firm to attract and recruit the best candidates and turn them into great contractors.
What grabs a candidate’s attention when they’re looking for a company to work for? According to a study completed by LinkedIn:
- Culture and values (66%)
- Perks and benefits (54%)
- Mission and vision (50%)
Given an unlimited budget, 53% of recruiters would spend money on employer branding, while another 30% would spend it on candidate experience. Unfortunately, in most staffing firms the majority of the recruitment budget goes towards job boards, advertising, and recruitment agency costs, while only 8% is spent on employer branding.
Increasing contractor referrals also means that you can lower your recruiting costs, because your contractors are recommending your business to their friends and on social media. When contractors find out about your contractor care program, you’ll be recruiting less. Contractors will begin to seek you out. As the amount of money spent on recruitment goes down, you can invest more in your contractor care program.
Adding a contractor care program helps your company to increase contractor referrals, which helps to attract better contractors and lower recruiting costs; both of which improve revenue. That should make it easier to convince your CEO that contractor care is an integral part of a successful staffing firm.
3. Increase client value
To a staffing firm, contractors are an asset. Have better contractors, land better clients or improve the value you’re giving to current clients. Your clients want to hire the best contractors. Are they going to come to you or your competitors?
Because a contractor care program allows your staffing firm to attract better contractors, it also allows the business to grow by attracting bigger and better clients for placing those contractors. This growth happens in three ways:
- Value of a current contract increases. For example, a current client likes your contractors and decides to hire more of them.
- New clients join your firm. These clients likely heard from your other clients that your staffing firm has great contractors.
- Your contractor engagement program is a differentiator. With a platform like Sense, you can now prove that you care about your contractors and actually proactively take care of issues that might arise during their assignment.
Word of mouth advertising can be very powerful. Having great contractors, which you attracted because you have an awesome contractor care program, also attract great clients.
The benefits of a contractor care program can be summarized into three categories: Lowering contractor attrition rates, increasing contractor referrals, and increasing client value. Each of these benefits that come from having a contractor care program will be able to help you convince your CEO that your staffing firm needs a contractor care program.
Are you interested in lowering your staffing firm’s attrition rates? Schedule a demo to check out Sense today.