As an employer, you know that high employee turnover in temporary jobs can be a major challenge. Frequent departures can disrupt productivity, work quality, and team stability. Moreover, according to a Forbes article, studies show that employee turnover carries a significant cost, even for part-time workers: replacing an employee costs 1.5 to 2 times their annual salary.

That’s why it’s essential to implement effective strategies to reduce turnover and create a work environment where temporary employees are motivated to stay for the entire contract duration.

In this article, we’ll explore the main causes of high turnover in temporary jobs and strategies to avoid these situations.

Why is Turnover Higher in Temporary Jobs?

High turnover among temporary employees can be influenced by several factors:

• Lack of stability: Temporary jobs are, by definition, fixed-term, which can lead to lower engagement from employees.
• Weaker benefits packages: Compared to permanent employees, temporary workers may have limited access to benefits like health insurance or bonuses
• Poor team integration: If temporary employees don’t feel integrated or supported, they may leave sooner.
• Lack of advancement opportunities: Temporary workers may feel they have no real chance for promotion or career development within the company.

To address these challenges, you need to implement strategies that make the work experience more attractive and motivating.

1. Proper Selection and Recruitment

The recruitment process plays a critical role in reducing turnover. Choosing the right candidates increases the likelihood that they’ll stay for the entire contract duration.

How to recruit effectively:

• Clarify expectations from the interview—explain the contract duration and job responsibilities clearly.
• Select candidates motivated by the flexibility of temporary work, not just the need for short-term income.
• Check cultural compatibility—temporary employees should integrate easily into the existing team.

1.1. Partner with a Staffing Agency

At Smartemp, we support you in identifying and attracting the right seasonal candidates, paying close attention to your company’s needs and the project you’re hiring for. With over 13 years of experience in staffing services, we handle the following tasks to make your work easier:

• Recruit temporary workers using our database and headhunting techniques. 
• Arrange meetings with temporary employees to discuss required documents, working conditions, and job descriptions.
• Prepare and sign necessary hiring documents, such as employment contracts, internal regulations, or declarations regarding additional income, dependents, or health insurance affiliations.
• Draft additional agreements and decisions, and submit the electronic employee registry to the relevant authorities.
• Create a timesheet model based on the temporary employer’s requirements.
• Calculate and pay salaries, vacation days, medical leave, and related tax obligations.
• Prepare and submit the 112 tax declaration.
• Manage meal vouchers.

2. Provide Effective Onboarding

Many temporary employees leave within the first few weeks because they don’t receive enough support during the adaptation period.

What you can do:

• Organize onboarding sessions that clearly outline expectations, procedures, and the organization’s culture.
• Assign a mentor or point of contact in the team to answer the employee’s questions.
• Ensure the temporary employee has access to all resources needed to perform their tasks efficiently.

3. Create a Motivating Work Environment

Even though temporary employees are with the company for a limited time, they need to feel valued and integrated into the team.

How to motivate temporary employees:

• Recognize their contributions and provide regular feedback.
• Involve them in relevant team meetings and discussions.
• Offer professional development opportunities, such as training or mentoring sessions.

A positive work environment can boost motivation and reduce the desire to leave before the contract ends.

4. Offer an Attractive Benefits Package

Temporary employees may be tempted to leave if they find a better offer elsewhere. While temporary jobs can’t always compete with the stability of permanent contracts, there are ways to improve retention.

Possible benefits for temporary employees:

• Performance or contract completion bonuses.
• Opportunities to take on more complex projects or greater responsibilities.
• Flexible work schedules for better work-life balance.

5. Ensure Effective and Transparent Communication

Gallup reports that 40% of employee turnover can be prevented, but is often overlooked. Most voluntary departures happen quickly, with 45% of employees who leave stating they had minimal interaction with managers in the three months prior to their exit. This highlights a key opportunity to reduce turnover through proactive communication.

How to improve communication:

• Provide clear information about the contract duration and potential extensions.
• Stay open to discussions and feedback—understand the employee’s expectations and how you can improve their experience.
• Establish a clear communication channel between employees and managers for any issues or questions.

6. Create Long-Term Opportunities

Many temporary employees are seeking stable employment. If a company offers a real chance to stay on the team, they may be more motivated to remain for the contract duration.

How to do this:

• Offer contract extensions to high-performing employees.
• Create a clear system for temporary employees to apply for permanent roles.
• Show them they’re valued and that there are opportunities for growth within the company.

High employee turnover in temporary jobs can be significantly reduced with well-thought-out strategies. Proper recruitment, effective onboarding, a motivating work environment, and transparent communication are essential factors for retaining employees throughout their contracts.

 

Sources:

Forbes: Part-Time Workers: Don’t Underestimate Their Impact

Indeed: 9 Causes of High Employee Turnover and How To Prevent It

Nesco Resource: How to Reduce Temporary Worker Turnover

NetSuite: 15 Tips to Reduce Employee Turnover and Improve Hiring and Retention in 2024

 

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