We live in times where unemployment rates are low, especially compared to other countries in Europe. This means that highly skilled candidates are in demand, so there are many opportunities out there for contractors. Great for the candidate, not so good for employers. This is particularly the case for contractors in the IT industry, who are highly sought after. This creates a war for talent.
Contractors in the current climate can benefit from higher day rates, jobs closer to home and plenty of opportunities. With the current skills shortages which exist in the industry, contractors have peace of mind that they won’t have gaps between their assignments. This puts employers in a very difficult position.
They need to pay contractors more, they are faced with delays and an increased need to fill roles with candidates from overseas. There is much more employers can do to deal with the war for talent and to improve their business.
Market Cycles
It is important for employers to understand the skillset of their contractors. Large projects tend to act as hubs of such contractors. Very often, a large number of contractors will be released from the projects around the same time to coincide with a Go-Live, or abandonment, or an outsourcing decision. It is all about timing and understanding market cycles. If you are tuned in, you are likely to make the most of short term contractor supply spikes. The stronger the awareness of contractors and cycles, the easier it will be for employers to acquire and retain proven talent.
In our blog article, High Volume Recruitment for Digital Programmes – How to Get it Right, we explore 4 tips for getting high volume recruitment right.
Recruiting Teams
Let’s face it, the traditional systems are no longer working. It’s time for employers to take a new approach to recruitment and one of the ways to increase the chance of recruiting top talent is to focus on teams, rather than individuals. It is somewhat ironical that although IT contractors are sole entrepreneurs, they are mostly hired to work in a team. Contractors therefore find the prospect of working with previous colleagues more enticing. This means there can be shared understanding from Day one. As a result, contractors can spend less time in influencing decisions (which is hard work) but more on implementing them. Building a strong team with people who have already formed relationships is a win-win for the employer and the contractor.
Agency Selection
Employer’s need to consider where they get their candidates from. Intermediary (or agency) selection is vital when it comes to hiring contractors. If your intermediary does not take the time to build good relationships with contractors, they are unlikely to be able to recruit talented individuals. It is important to understand how your intermediary is treating contractors and make changes if need be. The best place to start is to ask the contractors directly, as this way you’ll be sure to get an honest answer. Usual reasons for contractor gripe include: too fat a margin, funny games during renewal, making exit difficult, lack of transparency.
Compensation Models
What incentive do contractors have to stay with you? If you pay on a day rate basis, they probably don’t have much incentive, so it might be time to change your compensation models. If you pay when the contractor has completed a project for instance, they are more likely to stay for longer. Of course, this may mean you need to raise the rate you pay contractors, but the ability to retain contractors will make it much more lucrative.
At Mindful Contract Solutions, we are here to help ensure you win the war for talent and we achieve this through our industry expertise, connections and ability to keep our IT contractors happy. Our value proposition is best in class for clients and subcontractors alike. We promise your contractors will thank you for appointing us as your sole intermediary. Get in touch today to find out how we can help.