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Locking your contractors in for a contract extension pre-Christmas is the smartest thing you can do as a company and, as a recruitment agency running a contract book.
Why?
December and January are typically the months when workers get itchy feet and reassess their goals for the new year. It is also common for contractors to be on agreements closing at the end of the year.
We know from our research that contractors start looking for their next opportunity 6 – 8 weeks from their contract end date. This means if you have any contractors due to end this side of 2024, they are already searching for their next role.
If you are a manager or hirer, you need to make sure you apply to extend their contract early and to confirm extensions with those signing off on budgets before the talent is lost in this competitive market.
Managing contract extensions – what is the process?
Usually, a contractor’s fee comes under a project budget or departmental budget rather than being part of the company headcount. Renewing their contract will usually require a few levels of approvals and it can take a few days or weeks to confirm an extension has been agreed to by all parties. = Does it require a brand new contract to be signed?
For any contract extension, there must be an agreement by letter or contract which the contractor signs and the end client. If this is managed through a recruiter, then the recruiter is likely to require a copy to be signed between them and the end client also, unless they have a master agreement in place.
If there is a change in the scope of work or contractor rates then a new or amended contract should be drafted and your usual process followed.
Having a speedy contract extension process is key to successfully retaining skills in your business.
Oncore supports our clients and recruitment partners by facilitating much of this process and can ensure updated information is uploaded to all relevant systems.
Please contact us if you need support or more information at 1300 654 484.
The market is still red hot for talent
While we continue to hear about tech layoffs and hiring freezes amid global recession fears it is clear that there is still a candidate shortage locally in key industries like technology and digital transformation. Australia and New Zealand are still facing the impact of the pandemic with the return of skilled migrants and travellers proving slower than expected.
It's no secret that we've been in a candidate and skills short market for some time, and the difficulties in finding suitable candidates are only likely to continue.
The shortage in required skills means that competition for talent remains fierce. Permanent hiring caps are creating bidding wars for contractors who are worth their weight in gold.
Retaining contractor talent
Businesses may be facing tougher economic uncertainty but they will need to continue to forge ahead with key projects to drive top-line growth. In these cases, they will need the skills to carry those important tasks through to completion.
While offering high day rates remains the most attractive benefit, contractors are increasingly valuing the opportunity to work in great environments with exciting projects, a focus on inclusivity and culture, as well as continued flexibility. See more from our contractor survey summary.
Recruiters are reminded to check in early with clients about how they are progressing with key projects and the performance of their contractors. It is a good opportunity to highlight the need for them to review and renew contracts now so as not to lose out on talent moving elsewhere.
If you need help managing your contractors through Oncore, please reach out to us on 1300 654 484 via our support line or complete an enquiry here.