Human capital diagnostic tool

Although contractors make up around 30% of Australian businesses, many organisations have no centralised visibility and control of these arrangements, leading to significant risks. According to Ardent Partners:

32% of contractors are accounted for in business planning.
52% of contractors complete projects on time or on budget.
49% of contractors are rehired for future projects or initiatives.

When you don’t know how many contracts are in your business, what they’re paid, how long their contract is or whether they’re redeployed, these contractor programs usually perform poorly. The risks to businesses with these types of ungoverned programs include:

Inability to forecast – Businesses are not able to accurately plan for scaling up or down their workforce without knowing how many contractors are in their business, leading to inefficiencies in the recruitment process.
Cost blowouts – Without understanding market rates, you’re left wide open to relying on staffing providers for last minute contractor hires at exorbitant prices.
Variation between contractors – Managers are likely hiring contractors on wildly inconsistent pay rates for the same worker type or role.

We manage and payroll over 10,000 contingent workers per year for over 300 corporate clients, capturing data on a contractor’s engagement, payroll and management. This data allows us to assess our clients’ programs and provide recommendations to improve outcomes of the workforce and in turn improve business objectives.

To assist our clients and the wider market with gaining a greater understanding of their contingent workforce, CXC has put together a tool that allows organisations to quickly assess their own program against market benchmarks. In this human capital diagnostic tool, we ask key questions to collect data on your contingent workforce program, such as extension rates, tenure and redeployment, and benchmark your answers against the extensive information we have on our contractors.

Fill out our questionnaire to hear the answers to:

How many contractors should I be redeploying?
What is an acceptable level of turnover?
How do my rates of direct sourcing compare with the market?

And much more.

After further analysis? Check out our Contingent Workforce Risk Diagnostic Tool and Contingent Workforce Salary Benchmark Report.

What percentage of contractors are you redeploying within your business?*
- A low percentage of contractors (for example, 0–3%)
- A medium percentage of contractors (for example, 3–6%)
- A high percentage of contractors (for example, 6–12%+)
- I don’t know
In terms of redeployment, your program may be performing below average. You are missing out on opportunities to redeploy contractors, and introducing new workers without the existing institutional knowledge and networks of the worker just released. In many cases, skilled contractors, when onboarded, are not managed in a talent pool. In the weeks coming up to their end date, these workers are not considered for future engagements.

When a contingent worker reaches the end of their contract, are they let go, or do they take up a new assignment elsewhere in the company?

As a comparison, on average, our clients redeploy 12.4% of their contingent workers at the end of their contract.

Across our client base, organisations usually have lower levels of redeployment for a number of reasons:
- • When the company operates in silos. Often, some areas of the business have no understanding of available contractors elsewhere in the company.
- • A lack of systems, processes and people that:
  - - Manage end date processes to identify the skills leaving the organisation versus current and future needs.
  - - Create talent pools and the manage future requirements against future availability of the talent.
- • An immature program, often trailing the capability and performance of the permanent recruitment program.
Redeployment of workers remains a capability only a few companies have mastered, with most only able to consistently redeploy <5% of their contingent workers.

Companies engage contingent workers on a contract, usually for a limited period of time. Some organisations let this talent go at the end of their contract – especially during the COVID-19 pandemic, with many companies reducing headcount.

These organisations are finding it difficult to regain recruiting momentum as hiring requirements increase and candidates have multiple opportunities to consider. Those companies that have established redeployment processes are benefiting from their ability to minimise the effect of the increased volume requirements and recruitment difficulty.

Across our client base, we see high levels of redeployment for the following reasons:
- • Ensuring knowledge retention. A client has a large number of contractors working across IT projects, so they want to retain valuable intellectual property and knowledge.
- • As a cost saving initiative. They recognise that redeployed contractors are more cost effective and efficient that hiring new contractors. These contractors are known to be able to perform, are a fit for the company’s culture, have established relationships and have completed onboarding and system training.
- • An improved experience. A higher number of redeployed contractors provides a superior service to the worker and the manager.
- • Increased performance. Businesses are able to use a workforce with stronger knowledge of the broader business, including other projects, team capabilities and priorities.
- • Background checks and screening has already been performed, hence the onboarding process is more efficient.
After further reading? Check out our recent blog posts on the subject:
- • Known talent should be an essential part of your contractor hiring strategy
- • Finding and keeping the right talent in uncertain times
In terms of redeployment, your program may be performing below average. You are missing out on opportunities to redeploy contractors, and introducing new workers without the existing institutional knowledge and networks of the worker just released. In many cases, skilled contractors, when onboarded, are not managed in a talent pool. In the weeks coming up to their end date, these workers are not considered for future engagements.

When a contingent worker reaches the end of their contract, are they let go, or do they take up a new assignment elsewhere in the company?

As a comparison, on average, our clients redeploy 12.4% of their contingent workers at the end of their contract.

Across our client base, organisations usually have lower levels of redeployment for a number of reasons:
- • When the company operates in silos. Often, some areas of the business have no understanding of available contractors elsewhere in the company.
- • A lack of systems, processes and people that:
  - - Manage end date processes to identify the skills leaving the organisation versus current and future needs.
  - - Create talent pools and the manage future requirements against future availability of the talent.
- • An immature program, often trailing the capability and performance of the permanent recruitment program.
Redeployment of workers remains a capability only a few companies have mastered, with most only able to consistently redeploy <5% of their contingent workers.

Companies engage contingent workers on a contract, usually for a limited period of time. Some organisations let this talent go at the end of their contract – especially during the COVID-19 pandemic, with many companies reducing headcount.

These organisations are finding it difficult to regain recruiting momentum as hiring requirements increase and candidates have multiple opportunities to consider. Those companies that have established redeployment processes are benefiting from their ability to minimise the effect of the increased volume requirements and recruitment difficulty.

Across our client base, we see high levels of redeployment for the following reasons:
- • Ensuring knowledge retention. A client has a large number of contractors working across IT projects, so they want to retain valuable intellectual property and knowledge.
- • As a cost saving initiative. They recognise that redeployed contractors are more cost effective and efficient that hiring new contractors. These contractors are known to be able to perform, are a fit for the company’s culture, have established relationships and have completed onboarding and system training.
- • An improved experience. A higher number of redeployed contractors provides a superior service to the worker and the manager.
- • Increased performance. Businesses are able to use a workforce with stronger knowledge of the broader business, including other projects, team capabilities and priorities.
- • Background checks and screening has already been performed, hence the onboarding process is more efficient.
After further reading? Check out our recent blog posts on the subject:
- • Known talent should be an essential part of your contractor hiring strategy
- • Finding and keeping the right talent in uncertain times
You have a higher performing redeployment program, which is in the minority compared to the industry.

You have likely established processes and or systems to allow your organisation to re-engage workers at the end of the assignment or to bring them back to the organisation when there is a similar requirement in the future.

When a contingent worker reaches the end of their contract, are they let go, or do they take up a new assignment elsewhere in the company?

As a comparison, on average, our clients redeploy 12.4% of their contingent workers at the end of their contract.

Across our client base, organisations usually have lower levels of redeployment for a number of reasons:
- • When the company operates in silos. Often, some areas of the business have no understanding of available contractors elsewhere in the company.
- • A lack of systems, processes and people that:
  - - Manage end date processes to identify the skills leaving the organisation versus current and future needs.
  - - Create talent pools and the manage future requirements against future availability of the talent.
- • An immature program, often trailing the capability and performance of the permanent recruitment program.
Redeployment of workers remains a capability only a few companies have mastered, with most only able to consistently redeploy <5% of their contingent workers.

Companies engage contingent workers on a contract, usually for a limited period of time. Some organisations let this talent go at the end of their contract – especially during the COVID-19 pandemic, with many companies reducing headcount.

These organisations are finding it difficult to regain recruiting momentum as hiring requirements increase and candidates have multiple opportunities to consider. Those companies that have established redeployment processes are benefiting from their ability to minimise the effect of the increased volume requirements and recruitment difficulty.

Across our client base, we see high levels of redeployment for the following reasons:
- • Ensuring knowledge retention. A client has a large number of contractors working across IT projects, so they want to retain valuable intellectual property and knowledge.
- • As a cost saving initiative. They recognise that redeployed contractors are more cost effective and efficient that hiring new contractors. These contractors are known to be able to perform, are a fit for the company’s culture, have established relationships and have completed onboarding and system training.
- • An improved experience. A higher number of redeployed contractors provides a superior service to the worker and the manager.
- • Increased performance. Businesses are able to use a workforce with stronger knowledge of the broader business, including other projects, team capabilities and priorities.
- • Background checks and screening has already been performed, hence the onboarding process is more efficient.
After further reading? Check out our recent blog posts on the subject:
- • Known talent should be an essential part of your contractor hiring strategy
- • Finding and keeping the right talent in uncertain times
Unfortunately, organisations often lack the people, processes and technology to re-engage known, performing talent. They lack the infrastructure to manage contractor end dates, and the processes to measure worker performance and talent pooling for future needs.

We typically find that companies pay recruitment firms and SOW providers for resources that they engaged through an employee referral in the past.

When a contingent worker reaches the end of their contract, are they let go, or do they take up a new assignment elsewhere in the company?

As a comparison, on average, our clients redeploy 12.4% of their contingent workers at the end of their contract.

Across our client base, organisations usually have lower levels of redeployment for a number of reasons:
- • When the company operates in silos. Often, some areas of the business have no understanding of available contractors elsewhere in the company.
- • A lack of systems, processes and people that:
  - - Manage end date processes to identify the skills leaving the organisation versus current and future needs.
  - - Create talent pools and the manage future requirements against future availability of the talent.
- • An immature program, often trailing the capability and performance of the permanent recruitment program.
Redeployment of workers remains a capability only a few companies have mastered, with most only able to consistently redeploy <5% of their contingent workers.

Companies engage contingent workers on a contract, usually for a limited period of time. Some organisations let this talent go at the end of their contract – especially during the COVID-19 pandemic, with many companies reducing headcount.

These organisations are finding it difficult to regain recruiting momentum as hiring requirements increase and candidates have multiple opportunities to consider. Those companies that have established redeployment processes are benefiting from their ability to minimise the effect of the increased volume requirements and recruitment difficulty.

Across our client base, we see high levels of redeployment for the following reasons:
- • Ensuring knowledge retention. A client has a large number of contractors working across IT projects, so they want to retain valuable intellectual property and knowledge.
- • As a cost saving initiative. They recognise that redeployed contractors are more cost effective and efficient that hiring new contractors. These contractors are known to be able to perform, are a fit for the company’s culture, have established relationships and have completed onboarding and system training.
- • An improved experience. A higher number of redeployed contractors provides a superior service to the worker and the manager.
- • Increased performance. Businesses are able to use a workforce with stronger knowledge of the broader business, including other projects, team capabilities and priorities.
- • Background checks and screening has already been performed, hence the onboarding process is more efficient.
After further reading? Check out our recent blog posts on the subject:
- • Known talent should be an essential part of your contractor hiring strategy
- • Finding and keeping the right talent in uncertain times
How many contractors are you directly sourcing?*
- A low level (for example, 0–25%)
- A medium level (for example, 25–75%)
- A high level (for example, 75–100%)
- I don’t know.
In terms of direct sourcing, your program is performing below average. You are not taking advantage of your organisation's networks and likely to be paying recruitment supplier fees for talent that your hiring managers introduce to the supplier.

Often, organisations find it hard to achieve a minimum of 25% direct sourcing when they don’t have a dedicated supplier that payrolls these workers.

Direct sourcing is generally cheaper, faster and more effective than relying on a panel of recruitment suppliers.

Direct sourcing is where companies engage talent directly, instead of having to go through a third-party recruitment agency or SOW provider. What proportion of new hires are through referrals and talent pools, as opposed to recruitment suppliers?

As a comparison, for the contractors we manage, 87% are directly sourced. These contractors are sourced through a wide variety of channels, such as:
- • Workers that have been previously employed by the company.
- • Candidates who went through the hiring process but were not selected.
- • Candidates within the organisation’s applicant tracking system (ATS).
- • Referrals from other managers, employees or contractors within the business.
Across our client base, organisations usually have lower levels of direct sourcing for a number of reasons:
- • Some clients are needing to rapidly onboard contractors for projects (such as nurses to staff a COVID-19 hotline). To fill these roles quickly, they often need to go to their agency panel.
- • When the client’s talent acquisition team has a focus on permanent recruitment, rather than contingent.
- • In some instances, a higher level of redeployment leads to lower levels of direct sourcing. With most contractors being retained in the business, any additional talent needs are sourced through agencies.
What we have found, even in our clients that have no centralised direct sourcing program, is that the majority of their contractors come from direct sourcing. In fact, a recent white paper on direct sourcing from Procom found that ‘direct sourcing makes up 50% of total contingent labour, even without any supporting initiatives’. The very lowest level of direct sourcing we found in one of our enterprise clients was at around 22.5%, due to their requirements of rapidly onboarding large tranches of contractors.

However, there are a number of compelling reasons to boost this percentage and minimise the reliance on third-party recruitment agencies. Typically, staffing firms mark up talent costs by around 20–40%. Additionally, direct sourcing can give you:
- • The ability to quickly find the talent you need through stronger workforce planning.
- • Improved company branding and value proposition.
- • More consistent contractor experience.
- • Higher quality talent retention.
- • Reduced administrative duties in the hiring process.
Direct sourcing and contingent workers both contribute towards an organisation’s agility and flexibility. By their very nature, contractors can allow companies to rapidly scale up and down as needs require; by the same token, direct sourcing allows you to have a firmer grasp on your hiring practices and cut out the middleman.

How can you improve your ability to directly source? CXC’s clients with the highest level of direct sourcing achieve it through the following ways:
- • A strong employer brand. Many clients that have high levels of direct sourcing have built a reputation as an employer of choice.
- • A dedicated function focused on direct sourcing. We work with Recruitment Process Outsourcing (RPO) providers, such as Korn Ferry, that are focusing entirely on direct sourcing.
- • A desire from the client to reduce inflated agency margins associated with recruitment suppliers.
Many organisations believe they don’t have the expertise or relationships to find quality talent; however, modern talent marketplaces are serving to remove the barriers for entering direct sourcing. This talent pooling capability provides organisations with the ability to track and maintain candidates, reducing time to onboard and recruitment costs.

CXC’s talent marketplace, Workforce Exchange, is an example of how our clients build their direct sourcing capability. With a pool of over 5,000 proven and prequalified contingent workers, CXC can provide talent to our clients within 48 hours of submitting a request.

After further reading? Check out our recent blog posts on the subject:
- • Most prevalent myths and surprising truths on direct sourcing contractors
- • A successful program for direct sourcing contractors using best practice
- • A valuable checklist that supports implementing a Direct Sourcing Program
- • Direct Talent Sourcing – more valuable insights for your organisation
It looks like you’ve started to establish some direct sourcing programs, which are generating some success.

Organisations that are getting direct sourcing levels over 50% are starting to realise the benefits. In this range, organisations are making a strategic effort to improve their direct sourcing, and are dedicating people, process and technology behind it.

If you’re in the lower percentage of direct sourcing, it’s likely that your organisation is in the early days of your direct sourcing strategy, and you may not have the headcount required to achieve success.

Regardless, your program is achieving better than the majority of companies in the market. However, there’s still room for improvement, and further benefits to be gained by driving direct sourcing levels higher.

Direct sourcing is where companies engage talent directly, instead of having to go through a third-party recruitment agency or SOW provider. What proportion of new hires are through referrals and talent pools, as opposed to recruitment suppliers?

As a comparison, for the contractors we manage, 87% are directly sourced. These contractors are sourced through a wide variety of channels, such as:
- • Workers that have been previously employed by the company.
- • Candidates who went through the hiring process but were not selected.
- • Candidates within the organisation’s applicant tracking system (ATS).
- • Referrals from other managers, employees or contractors within the business.
Across our client base, organisations usually have lower levels of direct sourcing for a number of reasons:
- • Some clients are needing to rapidly onboard contractors for projects (such as nurses to staff a COVID-19 hotline). To fill these roles quickly, they often need to go to their agency panel.
- • When the client’s talent acquisition team has a focus on permanent recruitment, rather than contingent.
- • In some instances, a higher level of redeployment leads to lower levels of direct sourcing. With most contractors being retained in the business, any additional talent needs are sourced through agencies.
What we have found, even in our clients that have no centralised direct sourcing program, is that the majority of their contractors come from direct sourcing. In fact, a recent white paper on direct sourcing from Procom found that ‘direct sourcing makes up 50% of total contingent labour, even without any supporting initiatives’. The very lowest level of direct sourcing we found in one of our enterprise clients was at around 22.5%, due to their requirements of rapidly onboarding large tranches of contractors.

However, there are a number of compelling reasons to boost this percentage and minimise the reliance on third-party recruitment agencies. Typically, staffing firms mark up talent costs by around 20–40%. Additionally, direct sourcing can give you:
- • The ability to quickly find the talent you need through stronger workforce planning.
- • Improved company branding and value proposition.
- • More consistent contractor experience.
- • Higher quality talent retention.
- • Reduced administrative duties in the hiring process.
Direct sourcing and contingent workers both contribute towards an organisation’s agility and flexibility. By their very nature, contractors can allow companies to rapidly scale up and down as needs require; by the same token, direct sourcing allows you to have a firmer grasp on your hiring practices and cut out the middleman.

How can you improve your ability to directly source? CXC’s clients with the highest level of direct sourcing achieve it through the following ways:
- • A strong employer brand. Many clients that have high levels of direct sourcing have built a reputation as an employer of choice.
- • A dedicated function focused on direct sourcing. We work with Recruitment Process Outsourcing (RPO) providers, such as Korn Ferry, that are focusing entirely on direct sourcing.
- • A desire from the client to reduce inflated agency margins associated with recruitment suppliers.
Many organisations believe they don’t have the expertise or relationships to find quality talent; however, modern talent marketplaces are serving to remove the barriers for entering direct sourcing. This talent pooling capability provides organisations with the ability to track and maintain candidates, reducing time to onboard and recruitment costs.

CXC’s talent marketplace, Workforce Exchange, is an example of how our clients build their direct sourcing capability. With a pool of over 5,000 proven and prequalified contingent workers, CXC can provide talent to our clients within 48 hours of submitting a request.

After further reading? Check out our recent blog posts on the subject:
- • Most prevalent myths and surprising truths on direct sourcing contractors
- • A successful program for direct sourcing contractors using best practice
- • A valuable checklist that supports implementing a Direct Sourcing Program
- • Direct Talent Sourcing – more valuable insights for your organisation
You’re in the elite space of direct sourcing, and already understand the significant cost, efficient and quality benefits that direct sourcing provides.

With these levels, you’re matching the capability of your permanent recruitment, and are closely measuring your direct sourcing performance . As an organisation, you may be looking at ways of improving this percentage on an ongoing basis, introducing initiatives such as referrals, advertising and redeployment.

Direct sourcing is where companies engage talent directly, instead of having to go through a third-party recruitment agency or SOW provider. What proportion of new hires are through referrals and talent pools, as opposed to recruitment suppliers?

As a comparison, for the contractors we manage, 87% are directly sourced. These contractors are sourced through a wide variety of channels, such as:
- • Workers that have been previously employed by the company.
- • Candidates who went through the hiring process but were not selected.
- • Candidates within the organisation’s applicant tracking system (ATS).
- • Referrals from other managers, employees or contractors within the business.
Across our client base, organisations usually have lower levels of direct sourcing for a number of reasons:
- • Some clients are needing to rapidly onboard contractors for projects (such as nurses to staff a COVID-19 hotline). To fill these roles quickly, they often need to go to their agency panel.
- • When the client’s talent acquisition team has a focus on permanent recruitment, rather than contingent.
- • In some instances, a higher level of redeployment leads to lower levels of direct sourcing. With most contractors being retained in the business, any additional talent needs are sourced through agencies.
What we have found, even in our clients that have no centralised direct sourcing program, is that the majority of their contractors come from direct sourcing. In fact, a recent white paper on direct sourcing from Procom found that ‘direct sourcing makes up 50% of total contingent labour, even without any supporting initiatives’. The very lowest level of direct sourcing we found in one of our enterprise clients was at around 22.5%, due to their requirements of rapidly onboarding large tranches of contractors.

However, there are a number of compelling reasons to boost this percentage and minimise the reliance on third-party recruitment agencies. Typically, staffing firms mark up talent costs by around 20–40%. Additionally, direct sourcing can give you:
- • The ability to quickly find the talent you need through stronger workforce planning.
- • Improved company branding and value proposition.
- • More consistent contractor experience.
- • Higher quality talent retention.
- • Reduced administrative duties in the hiring process.
Direct sourcing and contingent workers both contribute towards an organisation’s agility and flexibility. By their very nature, contractors can allow companies to rapidly scale up and down as needs require; by the same token, direct sourcing allows you to have a firmer grasp on your hiring practices and cut out the middleman.

How can you improve your ability to directly source? CXC’s clients with the highest level of direct sourcing achieve it through the following ways:
- • A strong employer brand. Many clients that have high levels of direct sourcing have built a reputation as an employer of choice.
- • A dedicated function focused on direct sourcing. We work with Recruitment Process Outsourcing (RPO) providers, such as Korn Ferry, that are focusing entirely on direct sourcing.
- • A desire from the client to reduce inflated agency margins associated with recruitment suppliers.
Many organisations believe they don’t have the expertise or relationships to find quality talent; however, modern talent marketplaces are serving to remove the barriers for entering direct sourcing. This talent pooling capability provides organisations with the ability to track and maintain candidates, reducing time to onboard and recruitment costs.

CXC’s talent marketplace, Workforce Exchange, is an example of how our clients build their direct sourcing capability. With a pool of over 5,000 proven and prequalified contingent workers, CXC can provide talent to our clients within 48 hours of submitting a request.

After further reading? Check out our recent blog posts on the subject:
- • Most prevalent myths and surprising truths on direct sourcing contractors
- • A successful program for direct sourcing contractors using best practice
- • A valuable checklist that supports implementing a Direct Sourcing Program
- • Direct Talent Sourcing – more valuable insights for your organisation
Many organisations don’t have a firm grasp of the number of contractors that come through agencies, as opposed to those that are directly sourced. This is usually because of an obscured recruitment and talent acquisition process, with an overreliance on a decentralised supply chain model.

Direct sourcing is where companies engage talent directly, instead of having to go through a third-party recruitment agency or SOW provider. What proportion of new hires are through referrals and talent pools, as opposed to recruitment suppliers?

As a comparison, for the contractors we manage, 87% are directly sourced. These contractors are sourced through a wide variety of channels, such as:
- • Workers that have been previously employed by the company.
- • Candidates who went through the hiring process but were not selected.
- • Candidates within the organisation’s applicant tracking system (ATS).
- • Referrals from other managers, employees or contractors within the business.
Across our client base, organisations usually have lower levels of direct sourcing for a number of reasons:
- • Some clients are needing to rapidly onboard contractors for projects (such as nurses to staff a COVID-19 hotline). To fill these roles quickly, they often need to go to their agency panel.
- • When the client’s talent acquisition team has a focus on permanent recruitment, rather than contingent.
- • In some instances, a higher level of redeployment leads to lower levels of direct sourcing. With most contractors being retained in the business, any additional talent needs are sourced through agencies.
What we have found, even in our clients that have no centralised direct sourcing program, is that the majority of their contractors come from direct sourcing. In fact, a recent white paper on direct sourcing from Procom found that ‘direct sourcing makes up 50% of total contingent labour, even without any supporting initiatives’. The very lowest level of direct sourcing we found in one of our enterprise clients was at around 22.5%, due to their requirements of rapidly onboarding large tranches of contractors.

However, there are a number of compelling reasons to boost this percentage and minimise the reliance on third-party recruitment agencies. Typically, staffing firms mark up talent costs by around 20–40%. Additionally, direct sourcing can give you:
- • The ability to quickly find the talent you need through stronger workforce planning.
- • Improved company branding and value proposition.
- • More consistent contractor experience.
- • Higher quality talent retention.
- • Reduced administrative duties in the hiring process.
Direct sourcing and contingent workers both contribute towards an organisation’s agility and flexibility. By their very nature, contractors can allow companies to rapidly scale up and down as needs require; by the same token, direct sourcing allows you to have a firmer grasp on your hiring practices and cut out the middleman.

How can you improve your ability to directly source? CXC’s clients with the highest level of direct sourcing achieve it through the following ways:
- • A strong employer brand. Many clients that have high levels of direct sourcing have built a reputation as an employer of choice.
- • A dedicated function focused on direct sourcing. We work with Recruitment Process Outsourcing (RPO) providers, such as Korn Ferry, that are focusing entirely on direct sourcing.
- • A desire from the client to reduce inflated agency margins associated with recruitment suppliers.
Many organisations believe they don’t have the expertise or relationships to find quality talent; however, modern talent marketplaces are serving to remove the barriers for entering direct sourcing. This talent pooling capability provides organisations with the ability to track and maintain candidates, reducing time to onboard and recruitment costs.

CXC’s talent marketplace, Workforce Exchange, is an example of how our clients build their direct sourcing capability. With a pool of over 5,000 proven and prequalified contingent workers, CXC can provide talent to our clients within 48 hours of submitting a request.

After further reading? Check out our recent blog posts on the subject:
- • Most prevalent myths and surprising truths on direct sourcing contractors
- • A successful program for direct sourcing contractors using best practice
- • A valuable checklist that supports implementing a Direct Sourcing Program
- • Direct Talent Sourcing – more valuable insights for your organisation
How many contractors are you extending at the end of their contract?*
- We have a low number of extensions (for example, 0–0.5)
- We have a regular number of extensions (for example, 0.5–1.3)
- We have a lot of extensions (for example, 1.3–1.8+)
- I don’t know
It looks like you’re extending a low number of contractors at the end of their contract. While this may not be detrimental in of itself, it could point towards a number of issues in your business, including a lack of retention of contractors or poor contractor experience.

Currently, CXC’s extension rate is sitting at 1.2. This means that, on average, every contractor is extended just over one time. When we got feedback from our clients, the majority feel that one extension per contractor is the ideal level.

Across our client base, organisations usually have lower levels of extensions for a number of reasons:
- • Conversion to other engagement types. Some clients tend to convert contractors to permanent workers at the end of their contract. Others are putting contractors on a max term contract, where they are providing a worker with full-time employment benefits while still having a contract end date.
- • Shorter contracts. Some of our clients are putting these workers on very short-term contracts before converting them to permanent, which leads to low levels of extensions.
- • Longer contracts. Sometimes, clients will put contractors on longer contracts, often greater than a year. This also means that they’re not getting extended as often. One of our clients has a .4 extension rate, meaning the majority of contractors aren’t getting extended. Compare this with the average tenure of their contractors – a whopping 25.8 months.
- • Poor employee brand. The business may be offering extensions, but the contractors are turning them down due to poor experience.
As you can see, some of our clients are accepting a lower extension rate because of the nature of their business. However, without a clear strategy in place, having low levels of extensions could mean you’re losing valuable talent. Just like low levels of redeployment, a small number of extensions could be an indication that contractors are leaving the business forever.

Let’s look at the other end of the spectrum – the clients that are extending a significant amount of contractors. We see this happening for a number of different reasons:
- • Tenure policies. Some clients have a strict two-year tenure policy, meaning they either convert contractors to permanent or offboard them at the end of two years. For them, this means that the first contract they get put on is shorter, then extended.
- • Shorter contracts. When the work is primarily project driven, we often see month to month extensions. In certain cases, we’ve seen contractors turn down longer contracts because they want the flexibility to move from project to project.
- • Just-in-case contractors. Some of our clients keep a number of contractors on the books, but don’t engage them to do work. These contractors are extended just to ensure the client has talent there when they need it.
One of the bigger issues with high levels of extensions is the significant amount of administration it creates. If you have 10 contractors on six month contracts, that’s 20 instances of confirming extensions with managers, rate negotiation, contract creation and singing. These contractors may be better suited to a longer or max term contract.

That’s why we recommend clients have an understanding of what both too few and too many extensions looks like, as well as knowing how this intersects with tenure, redeployment and contractor satisfaction. We also recommend clients view extensions holistically when developing workforce strategy. If a contractor is extended for six months five times over, what’s going on? Why are contractors resigning at the end of their contract if they are offered a contract extension under six months?

To help our clients get complete visibility over the contractors coming up for extension, CXC sends hiring managers a reminder email six, four and two weeks out from the assignment end date to determine if the contractor will complete assignment on the contracted end date.

If the client doesn’t want to extend the worker, our system automatically notifies relevant business units. This is to restrict building and system access, organise the return of assets and close purchase orders. These offboarding processes ensure all contractors are proactively managed to mitigate all data security risks.

After further reading? Check out our recent blog posts on the subject:
- • Managing end date processes and solutions for contingent workers
- • Supporting hiring managers through disengagement & performance management
- • Mirror your HR policies, processes and procedures to your contingent workers
It looks like you’re extending a good number of contractors at the end of their contract.

Currently, CXC’s extension rate is sitting at 1.2. This means that, on average, every contractor is extended just over one time. When we got feedback from our clients, the majority feel that one extension per contractor is the ideal level.

Across our client base, organisations usually have lower levels of extensions for a number of reasons:
- • Conversion to other engagement types. Some clients tend to convert contractors to permanent workers at the end of their contract. Others are putting contractors on a max term contract, where they are providing a worker with full-time employment benefits while still having a contract end date.
- • Shorter contracts. Some of our clients are putting these workers on very short-term contracts before converting them to permanent, which leads to low levels of extensions.
- • Longer contracts. Sometimes, clients will put contractors on longer contracts, often greater than a year. This also means that they’re not getting extended as often. One of our clients has a .4 extension rate, meaning the majority of contractors aren’t getting extended. Compare this with the average tenure of their contractors – a whopping 25.8 months.
- • Poor employee brand. The business may be offering extensions, but the contractors are turning them down due to poor experience.
As you can see, some of our clients are accepting a lower extension rate because of the nature of their business. However, without a clear strategy in place, having low levels of extensions could mean you’re losing valuable talent. Just like low levels of redeployment, a small number of extensions could be an indication that contractors are leaving the business forever.

Let’s look at the other end of the spectrum – the clients that are extending a significant amount of contractors. We see this happening for a number of different reasons:
- • Tenure policies. Some clients have a strict two-year tenure policy, meaning they either convert contractors to permanent or offboard them at the end of two years. For them, this means that the first contract they get put on is shorter, then extended.
- • Shorter contracts. When the work is primarily project driven, we often see month to month extensions. In certain cases, we’ve seen contractors turn down longer contracts because they want the flexibility to move from project to project.
- • Just-in-case contractors. Some of our clients keep a number of contractors on the books, but don’t engage them to do work. These contractors are extended just to ensure the client has talent there when they need it.
One of the bigger issues with high levels of extensions is the significant amount of administration it creates. If you have 10 contractors on six month contracts, that’s 20 instances of confirming extensions with managers, rate negotiation, contract creation and singing. These contractors may be better suited to a longer or max term contract.

That’s why we recommend clients have an understanding of what both too few and too many extensions looks like, as well as knowing how this intersects with tenure, redeployment and contractor satisfaction. We also recommend clients view extensions holistically when developing workforce strategy. If a contractor is extended for six months five times over, what’s going on? Why are contractors resigning at the end of their contract if they are offered a contract extension under six months?

To help our clients get complete visibility over the contractors coming up for extension, CXC sends hiring managers a reminder email six, four and two weeks out from the assignment end date to determine if the contractor will complete assignment on the contracted end date.

If the client doesn’t want to extend the worker, our system automatically notifies relevant business units. This is to restrict building and system access, organise the return of assets and close purchase orders. These offboarding processes ensure all contractors are proactively managed to mitigate all data security risks.

After further reading? Check out our recent blog posts on the subject:
- • Managing end date processes and solutions for contingent workers
- • Supporting hiring managers through disengagement & performance management
- • Mirror your HR policies, processes and procedures to your contingent workers
It looks like you’re extending a high number of contractors at the end of their contract. Extending contractors is the ideal way to retain talent at the end of their contract; however, if you’re giving your contractors short contracts and continually extending them, you’re creating a huge administrative burden.

Currently, CXC’s extension rate is sitting at 1.2. This means that, on average, every contractor is extended just over one time. When we got feedback from our clients, the majority feel that one extension per contractor is the ideal level.

Across our client base, organisations usually have lower levels of extensions for a number of reasons:
- • Conversion to other engagement types. Some clients tend to convert contractors to permanent workers at the end of their contract. Others are putting contractors on a max term contract, where they are providing a worker with full-time employment benefits while still having a contract end date.
- • Shorter contracts. Some of our clients are putting these workers on very short-term contracts before converting them to permanent, which leads to low levels of extensions.
- • Longer contracts. Sometimes, clients will put contractors on longer contracts, often greater than a year. This also means that they’re not getting extended as often. One of our clients has a .4 extension rate, meaning the majority of contractors aren’t getting extended. Compare this with the average tenure of their contractors – a whopping 25.8 months.
- • Poor employee brand. The business may be offering extensions, but the contractors are turning them down due to poor experience.
As you can see, some of our clients are accepting a lower extension rate because of the nature of their business. However, without a clear strategy in place, having low levels of extensions could mean you’re losing valuable talent. Just like low levels of redeployment, a small number of extensions could be an indication that contractors are leaving the business forever.

Let’s look at the other end of the spectrum – the clients that are extending a significant amount of contractors. We see this happening for a number of different reasons:
- • Tenure policies. Some clients have a strict two-year tenure policy, meaning they either convert contractors to permanent or offboard them at the end of two years. For them, this means that the first contract they get put on is shorter, then extended.
- • Shorter contracts. When the work is primarily project driven, we often see month to month extensions. In certain cases, we’ve seen contractors turn down longer contracts because they want the flexibility to move from project to project.
- • Just-in-case contractors. Some of our clients keep a number of contractors on the books, but don’t engage them to do work. These contractors are extended just to ensure the client has talent there when they need it.
One of the bigger issues with high levels of extensions is the significant amount of administration it creates. If you have 10 contractors on six month contracts, that’s 20 instances of confirming extensions with managers, rate negotiation, contract creation and singing. These contractors may be better suited to a longer or max term contract.

That’s why we recommend clients have an understanding of what both too few and too many extensions looks like, as well as knowing how this intersects with tenure, redeployment and contractor satisfaction. We also recommend clients view extensions holistically when developing workforce strategy. If a contractor is extended for six months five times over, what’s going on? Why are contractors resigning at the end of their contract if they are offered a contract extension under six months?

To help our clients get complete visibility over the contractors coming up for extension, CXC sends hiring managers a reminder email six, four and two weeks out from the assignment end date to determine if the contractor will complete assignment on the contracted end date.

If the client doesn’t want to extend the worker, our system automatically notifies relevant business units. This is to restrict building and system access, organise the return of assets and close purchase orders. These offboarding processes ensure all contractors are proactively managed to mitigate all data security risks.

After further reading? Check out our recent blog posts on the subject:
- • Managing end date processes and solutions for contingent workers
- • Supporting hiring managers through disengagement & performance management
- • Mirror your HR policies, processes and procedures to your contingent workers
Not knowing how many contractors you are extending has the same dangers as not knowing how many contractors you’re redeploying. You may be losing talent, you many have cost leakage, you may have high tenure, you may be providing contractors with a poor experience – it’s hard to know.

Currently, CXC’s extension rate is sitting at 1.2. This means that, on average, every contractor is extended just over one time. When we got feedback from our clients, the majority feel that one extension per contractor is the ideal level.

Across our client base, organisations usually have lower levels of extensions for a number of reasons:
- • Conversion to other engagement types. Some clients tend to convert contractors to permanent workers at the end of their contract. Others are putting contractors on a max term contract, where they are providing a worker with full-time employment benefits while still having a contract end date.
- • Shorter contracts. Some of our clients are putting these workers on very short-term contracts before converting them to permanent, which leads to low levels of extensions.
- • Longer contracts. Sometimes, clients will put contractors on longer contracts, often greater than a year. This also means that they’re not getting extended as often. One of our clients has a .4 extension rate, meaning the majority of contractors aren’t getting extended. Compare this with the average tenure of their contractors – a whopping 25.8 months.
- • Poor employee brand. The business may be offering extensions, but the contractors are turning them down due to poor experience.
As you can see, some of our clients are accepting a lower extension rate because of the nature of their business. However, without a clear strategy in place, having low levels of extensions could mean you’re losing valuable talent. Just like low levels of redeployment, a small number of extensions could be an indication that contractors are leaving the business forever.

Let’s look at the other end of the spectrum – the clients that are extending a significant amount of contractors. We see this happening for a number of different reasons:
- • Tenure policies. Some clients have a strict two-year tenure policy, meaning they either convert contractors to permanent or offboard them at the end of two years. For them, this means that the first contract they get put on is shorter, then extended.
- • Shorter contracts. When the work is primarily project driven, we often see month to month extensions. In certain cases, we’ve seen contractors turn down longer contracts because they want the flexibility to move from project to project.
- • Just-in-case contractors. Some of our clients keep a number of contractors on the books, but don’t engage them to do work. These contractors are extended just to ensure the client has talent there when they need it.
One of the bigger issues with high levels of extensions is the significant amount of administration it creates. If you have 10 contractors on six month contracts, that’s 20 instances of confirming extensions with managers, rate negotiation, contract creation and singing. These contractors may be better suited to a longer or max term contract.

That’s why we recommend clients have an understanding of what both too few and too many extensions looks like, as well as knowing how this intersects with tenure, redeployment and contractor satisfaction. We also recommend clients view extensions holistically when developing workforce strategy. If a contractor is extended for six months five times over, what’s going on? Why are contractors resigning at the end of their contract if they are offered a contract extension under six months?

To help our clients get complete visibility over the contractors coming up for extension, CXC sends hiring managers a reminder email six, four and two weeks out from the assignment end date to determine if the contractor will complete assignment on the contracted end date.

If the client doesn’t want to extend the worker, our system automatically notifies relevant business units. This is to restrict building and system access, organise the return of assets and close purchase orders. These offboarding processes ensure all contractors are proactively managed to mitigate all data security risks.

After further reading? Check out our recent blog posts on the subject:
- • Managing end date processes and solutions for contingent workers
- • Supporting hiring managers through disengagement & performance management
- • Mirror your HR policies, processes and procedures to your contingent workers
What’s the average tenure of your contractors?*
- A short number of months (for example, 0–10 months)
- A regular number of months (for example, 10–17 months)
- Many months (for example, 17– 22 months+)
- I don’t know.
It looks like the contractors in your organisation have a relatively low tenure. Are you losing valuable intellectual property when contractors reach the end of their assignment? Are you having to replace these workers on a frequent basis, and train new ones?

Currently, the average tenure for CXC clients is 13.3 months.

CXC has recently provided further analysis of our client’s tenure in the recent Contingent Workforce Salary Benchmark Report. We found that, for most job families across our contingent workforce, the longer a contractor is engaged, the higher they’re paid. The more experience a contractor has, and the longer they work with a client, the more they can negotiate their pay.

Regardless of what their tenure is, we see a significant gender pay gap when comparing the female average day rates with males. However, female IT contractors that have been working 3–5 years with the same client are paid 12.72% more than male contractors with the same tenure.

Across our client base, organisations usually have low tenure duration for a number of reasons:
- • Strict tenure policies. Hiring managers need executive approval for any contractors extended past 12 months. To support our clients with these policies, we provide regular and detailed tenure metrics across their entire workforce.
- • The nature of work. Often, low tenure can be indicative of the type of work and industry the contractors are in. For project-based IT roles, or ones that have large campaigns, contractors are brought in for a short period of time, and then let go.
- • Conversion strategy. When the company has a mandated strategy to convert contractors to permanent.
- • Expected churn. When the contractors are on a lower salary, and the client expects a higher level of turnover.
When organisations employ contractors for less than a year, this can make it harder to maintain business momentum due to needing to find replacement talent, train them on company policies and ensure they’re engaged in the business.

A low tenure number is not always indicative of contractors leaving early or having a bad experience. The majority of clients with tenure under a year have contractors complete the entirety of their contract. However, we do see a correlation between low levels of tenure and low levels of redeployment, indicating that this talent is being lost to the business.

We consider prolonged levels of tenure to be another area concern. Our clients have higher levels of tenure for a number of reasons:
- • For the same reasons as higher numbers of extensions, some clients keep workers on their books just in case they’re needed. We’ve had instances of some contractors working a few days in the last 10 years.
- • When there are headcount restrictions for permanent roles, but the client still needs to engage the resource as a contractor.
- • An easier approval process, meaning contractors are retained for a long period of time.
- • Many organisations are experiencing a talent shortage and finding it difficult to get new starters in. They’re instead extending and retaining contractors for an extended period of time.
We see two key risks associated with lengthy tenure:
- • Co-employment as a result of lengthy contract engagements, exposing organisations to claims on payroll tax, superannuation, workers' compensation and more.
- • Inflated supplier fees from recruitment agencies. In decentralised programs, sourcing fees often continue indefinitely, with more costs the longer the contractor is engaged.
We consider tenure management to be a critical component of implementation and ongoing contingent workers management. Once engaged, contingent workers are tracked to ensure that they comply with the agreed legislative rules regarding tenure. These rules form part of the commercial terms and stipulate maximum assignment length, break in service and the re-hire policy.

Contingent workers who reach the established tenure benchmark are be transitioned through an appropriate process. We work with hiring managers to understand if the skills of the contingent worker are required by the business on an ongoing basis, therefore creating an opportunity to convert the contingent workers to a permanent role.

Additionally, for all workers who are engaged through a supplier, the supplier fee is dropped after a specified period of time, and only CXC’s fees and on costs are charged for the remaining period of their assignment. Transference of tenure contingent workers can reduce cost by up to as much as 10% of total spend.

CXC manages compliance to corporate policies and works with hiring managers and other stakeholders to minimise risks relating to contingent workers that have been appropriately approved to be engaged outside corporate policies.

After further reading? Check out our recent blog posts on the subject:
- • Contingent Workforce Salary Benchmark Report
- • Supplier and Worker Cost Savings Plan
It looks like your workers have an acceptable level of tenure – not too short and not too long.

Currently, the average tenure for CXC clients is 13.3 months.

CXC has recently provided further analysis of our client’s tenure in the recent Contingent Workforce Salary Benchmark Report. We found that, for most job families across our contingent workforce, the longer a contractor is engaged, the higher they’re paid. The more experience a contractor has, and the longer they work with a client, the more they can negotiate their pay.

Regardless of what their tenure is, we see a significant gender pay gap when comparing the female average day rates with males. However, female IT contractors that have been working 3–5 years with the same client are paid 12.72% more than male contractors with the same tenure.

Across our client base, organisations usually have low tenure duration for a number of reasons:
- • Strict tenure policies. Hiring managers need executive approval for any contractors extended past 12 months. To support our clients with these policies, we provide regular and detailed tenure metrics across their entire workforce.
- • The nature of work. Often, low tenure can be indicative of the type of work and industry the contractors are in. For project-based IT roles, or ones that have large campaigns, contractors are brought in for a short period of time, and then let go.
- • Conversion strategy. When the company has a mandated strategy to convert contractors to permanent.
- • Expected churn. When the contractors are on a lower salary, and the client expects a higher level of turnover.
When organisations employ contractors for less than a year, this can make it harder to maintain business momentum due to needing to find replacement talent, train them on company policies and ensure they’re engaged in the business.

A low tenure number is not always indicative of contractors leaving early or having a bad experience. The majority of clients with tenure under a year have contractors complete the entirety of their contract. However, we do see a correlation between low levels of tenure and low levels of redeployment, indicating that this talent is being lost to the business.

We consider prolonged levels of tenure to be another area concern. Our clients have higher levels of tenure for a number of reasons:
- • For the same reasons as higher numbers of extensions, some clients keep workers on their books just in case they’re needed. We’ve had instances of some contractors working a few days in the last 10 years.
- • When there are headcount restrictions for permanent roles, but the client still needs to engage the resource as a contractor.
- • An easier approval process, meaning contractors are retained for a long period of time.
- • Many organisations are experiencing a talent shortage and finding it difficult to get new starters in. They’re instead extending and retaining contractors for an extended period of time.
We see two key risks associated with lengthy tenure:
- • Co-employment as a result of lengthy contract engagements, exposing organisations to claims on payroll tax, superannuation, workers' compensation and more.
- • Inflated supplier fees from recruitment agencies. In decentralised programs, sourcing fees often continue indefinitely, with more costs the longer the contractor is engaged.
We consider tenure management to be a critical component of implementation and ongoing contingent workers management. Once engaged, contingent workers are tracked to ensure that they comply with the agreed legislative rules regarding tenure. These rules form part of the commercial terms and stipulate maximum assignment length, break in service and the re-hire policy.

Contingent workers who reach the established tenure benchmark are be transitioned through an appropriate process. We work with hiring managers to understand if the skills of the contingent worker are required by the business on an ongoing basis, therefore creating an opportunity to convert the contingent workers to a permanent role.

Additionally, for all workers who are engaged through a supplier, the supplier fee is dropped after a specified period of time, and only CXC’s fees and on costs are charged for the remaining period of their assignment. Transference of tenure contingent workers can reduce cost by up to as much as 10% of total spend.

CXC manages compliance to corporate policies and works with hiring managers and other stakeholders to minimise risks relating to contingent workers that have been appropriately approved to be engaged outside corporate policies.

After further reading? Check out our recent blog posts on the subject:
- • Contingent Workforce Salary Benchmark Report
- • Supplier and Worker Cost Savings Plan
It looks like the contractors in your organisation have a relatively high tenure. While it may be beneficial to hold onto performing talent, many contractors may not want to be on indefinite insecure work. Your contractors may benefit from conversion to permanent or maximum term roles.

Currently, the average tenure for CXC clients is 13.3 months.

CXC has recently provided further analysis of our client’s tenure in the recent Contingent Workforce Salary Benchmark Report. We found that, for most job families across our contingent workforce, the longer a contractor is engaged, the higher they’re paid. The more experience a contractor has, and the longer they work with a client, the more they can negotiate their pay.

Regardless of what their tenure is, we see a significant gender pay gap when comparing the female average day rates with males. However, female IT contractors that have been working 3–5 years with the same client are paid 12.72% more than male contractors with the same tenure.

Across our client base, organisations usually have low tenure duration for a number of reasons:
- • Strict tenure policies. Hiring managers need executive approval for any contractors extended past 12 months. To support our clients with these policies, we provide regular and detailed tenure metrics across their entire workforce.
- • The nature of work. Often, low tenure can be indicative of the type of work and industry the contractors are in. For project-based IT roles, or ones that have large campaigns, contractors are brought in for a short period of time, and then let go.
- • Conversion strategy. When the company has a mandated strategy to convert contractors to permanent.
- • Expected churn. When the contractors are on a lower salary, and the client expects a higher level of turnover.
When organisations employ contractors for less than a year, this can make it harder to maintain business momentum due to needing to find replacement talent, train them on company policies and ensure they’re engaged in the business.

A low tenure number is not always indicative of contractors leaving early or having a bad experience. The majority of clients with tenure under a year have contractors complete the entirety of their contract. However, we do see a correlation between low levels of tenure and low levels of redeployment, indicating that this talent is being lost to the business.

We consider prolonged levels of tenure to be another area concern. Our clients have higher levels of tenure for a number of reasons:
- • For the same reasons as higher numbers of extensions, some clients keep workers on their books just in case they’re needed. We’ve had instances of some contractors working a few days in the last 10 years.
- • When there are headcount restrictions for permanent roles, but the client still needs to engage the resource as a contractor.
- • An easier approval process, meaning contractors are retained for a long period of time.
- • Many organisations are experiencing a talent shortage and finding it difficult to get new starters in. They’re instead extending and retaining contractors for an extended period of time.
We see two key risks associated with lengthy tenure:
- • Co-employment as a result of lengthy contract engagements, exposing organisations to claims on payroll tax, superannuation, workers' compensation and more.
- • Inflated supplier fees from recruitment agencies. In decentralised programs, sourcing fees often continue indefinitely, with more costs the longer the contractor is engaged.
We consider tenure management to be a critical component of implementation and ongoing contingent workers management. Once engaged, contingent workers are tracked to ensure that they comply with the agreed legislative rules regarding tenure. These rules form part of the commercial terms and stipulate maximum assignment length, break in service and the re-hire policy.

Contingent workers who reach the established tenure benchmark are be transitioned through an appropriate process. We work with hiring managers to understand if the skills of the contingent worker are required by the business on an ongoing basis, therefore creating an opportunity to convert the contingent workers to a permanent role.

Additionally, for all workers who are engaged through a supplier, the supplier fee is dropped after a specified period of time, and only CXC’s fees and on costs are charged for the remaining period of their assignment. Transference of tenure contingent workers can reduce cost by up to as much as 10% of total spend.

CXC manages compliance to corporate policies and works with hiring managers and other stakeholders to minimise risks relating to contingent workers that have been appropriately approved to be engaged outside corporate policies.

After further reading? Check out our recent blog posts on the subject:
- • Contingent Workforce Salary Benchmark Report
- • Supplier and Worker Cost Savings Plan
It’s important for an organisation to know how long their contractors are working. Your contractors may have low tenure, because the contracts they’re on are too short. Or, they could have high tenure, which may expose your business to legislative risk and costs.

Currently, the average tenure for CXC clients is 13.3 months.

CXC has recently provided further analysis of our client’s tenure in the recent Contingent Workforce Salary Benchmark Report. We found that, for most job families across our contingent workforce, the longer a contractor is engaged, the higher they’re paid. The more experience a contractor has, and the longer they work with a client, the more they can negotiate their pay.

Regardless of what their tenure is, we see a significant gender pay gap when comparing the female average day rates with males. However, female IT contractors that have been working 3–5 years with the same client are paid 12.72% more than male contractors with the same tenure.

Across our client base, organisations usually have low tenure duration for a number of reasons:
- • Strict tenure policies. Hiring managers need executive approval for any contractors extended past 12 months. To support our clients with these policies, we provide regular and detailed tenure metrics across their entire workforce.
- • The nature of work. Often, low tenure can be indicative of the type of work and industry the contractors are in. For project-based IT roles, or ones that have large campaigns, contractors are brought in for a short period of time, and then let go.
- • Conversion strategy. When the company has a mandated strategy to convert contractors to permanent.
- • Expected churn. When the contractors are on a lower salary, and the client expects a higher level of turnover.
When organisations employ contractors for less than a year, this can make it harder to maintain business momentum due to needing to find replacement talent, train them on company policies and ensure they’re engaged in the business.

A low tenure number is not always indicative of contractors leaving early or having a bad experience. The majority of clients with tenure under a year have contractors complete the entirety of their contract. However, we do see a correlation between low levels of tenure and low levels of redeployment, indicating that this talent is being lost to the business.

We consider prolonged levels of tenure to be another area concern. Our clients have higher levels of tenure for a number of reasons:
- • For the same reasons as higher numbers of extensions, some clients keep workers on their books just in case they’re needed. We’ve had instances of some contractors working a few days in the last 10 years.
- • When there are headcount restrictions for permanent roles, but the client still needs to engage the resource as a contractor.
- • An easier approval process, meaning contractors are retained for a long period of time.
- • Many organisations are experiencing a talent shortage and finding it difficult to get new starters in. They’re instead extending and retaining contractors for an extended period of time.
We see two key risks associated with lengthy tenure:
- • Co-employment as a result of lengthy contract engagements, exposing organisations to claims on payroll tax, superannuation, workers' compensation and more.
- • Inflated supplier fees from recruitment agencies. In decentralised programs, sourcing fees often continue indefinitely, with more costs the longer the contractor is engaged.
We consider tenure management to be a critical component of implementation and ongoing contingent workers management. Once engaged, contingent workers are tracked to ensure that they comply with the agreed legislative rules regarding tenure. These rules form part of the commercial terms and stipulate maximum assignment length, break in service and the re-hire policy.

Contingent workers who reach the established tenure benchmark are be transitioned through an appropriate process. We work with hiring managers to understand if the skills of the contingent worker are required by the business on an ongoing basis, therefore creating an opportunity to convert the contingent workers to a permanent role.

Additionally, for all workers who are engaged through a supplier, the supplier fee is dropped after a specified period of time, and only CXC’s fees and on costs are charged for the remaining period of their assignment. Transference of tenure contingent workers can reduce cost by up to as much as 10% of total spend.

CXC manages compliance to corporate policies and works with hiring managers and other stakeholders to minimise risks relating to contingent workers that have been appropriately approved to be engaged outside corporate policies.

After further reading? Check out our recent blog posts on the subject:
- • Contingent Workforce Salary Benchmark Report
- • Supplier and Worker Cost Savings Plan
What percentage of contractors work from home at least some of the time?*
- A low amount (for example, 0–30%)
- A regular amount (for example, 30–70%)
- A high amount (for example, 70%+)
- I don’t know
Working from home or working a mix of days at home and in the office has become the new normal. If your contractors don’t need to perform their duties at their work location, you have not kept up with other company’s work trends or opportunities.

Currently, 50.1% of our contractors work from home at least some of the time. We measure this by the number of contractors that have signed a work from home declaration. Across CXC’s contractor workforce, in Australia and internationally, we have seen a 77% increase in contingent workers working remotely over the last two years.

We’ve seen a huge shift to remote working. This is especially true for IT contractors that could do their job from any location. In a recent survey across our entire contractor base, we found the following job roles to have the highest levels of working from home to some degree (that is, working from home all the time or working a blended week at home and in the office):
- • Data/Information/Solution Architect – 100% working from home to some degree.
- • Business/Data Analyst – 100% working from home to some degree.
- • Tester/Test Analyst/Engineer – 100% working from home to some degree.
- • Software Engineer/Developer/Designer – 96.03% working from home to some degree.
We found the following job roles to have the lowest levels of working from home:
- • Engineer/Civil Engineer – 50% working from home to some degree.
- • Customer Service – 52.63 working from home to some degree.
- • Administration Officer/Executive Assistant – 66.67 working from home to some degree.
We usually see low levels of contractors working from home for the following reasons:
- • A total talent perspective. When organisations have large numbers of permanent workers working from home, it makes sense to extend this opportunity to their contractor base. One of our clients goes above and beyond for their contractors by providing equipment and support for performing their role remotely.
- • Using working from home as a talent attraction strategy. More and more contractors are valuing flexibility from their employer.
- • Decommissioning of certain sites, and a number of projects wrapping up. Rather than offboarding these workers, clients have opted to engage them in other work that they can do remotely.
- Reducing overheads through hot desking. Some clients have transitioned to a hot desk or activity based arrangement, where they can only have an 80% capacity in the office at any one time.
- • A rethinking of recruitment. Some clients are engaging workers from anywhere in Australia, and even overseas.
Due to COVID-19, employers are experiencing a talent shortage for critical niche rolls across all industries, brought about by the difficulty to source supplementary workers from overseas. With border closures, flight cancellations and issues with obtaining visas, it’s harder than ever to fly supplementary workers into Australia to perform work.

Some companies are opting to engage workers offshore, if they can complete tasks remotely. While this is solving the talent shortage, it introduces additional complexity including management of assets, foreign exchange, country-specific levy requirements, taxation and data security to name a few.

CXC ensures contingent workers have access to their systems, issuing required work permits and increasing activities to support their mental health. For one of our clients, many contractors were uncertain when they could enter the country. Rather than offboard them, potentially losing valuable talent, CXC ensured they could work remotely until they could enter Australia.

After further reading? Check out our recent blog posts on the subject:
- • Tax deductions for working from home?
- • Remote working in Australia – another fad or an overall trend?
- • Remote Work Trends 2021: What Is the Future Of Remote Work?
- • Managing workforce risk during COVID-19: The risks of remote working
- • CHECKLIST! Managing Remote Workers During COVID-19
In the aftermath of the COVID-19 pandemic, working from home or working a mix of days at home and in the office has become the new normal. If your contractors don’t need to perform their duties at their work location, you have not kept up with other company’s work trends or opportunities.

Currently, 50.1% of our contractors work from home at least some of the time. We measure this by the number of contractors that have signed a work from home declaration. Across CXC’s contractor workforce, in Australia and internationally, we have seen a 77% increase in contingent workers working remotely over the last two years.

We’ve seen a huge shift to remote working. This is especially true for IT contractors that could do their job from any location. In a recent survey across our entire contractor base, we found the following job roles to have the highest levels of working from home to some degree (that is, working from home all the time or working a blended week at home and in the office):
- • Data/Information/Solution Architect – 100% working from home to some degree.
- • Business/Data Analyst – 100% working from home to some degree.
- • Tester/Test Analyst/Engineer – 100% working from home to some degree.
- • Software Engineer/Developer/Designer – 96.03% working from home to some degree.
We found the following job roles to have the lowest levels of working from home:
- • Engineer/Civil Engineer – 50% working from home to some degree.
- • Customer Service – 52.63 working from home to some degree.
- • Administration Officer/Executive Assistant – 66.67 working from home to some degree.
We usually see low levels of contractors working from home for the following reasons:
- • A total talent perspective. When organisations have large numbers of permanent workers working from home, it makes sense to extend this opportunity to their contractor base. One of our clients goes above and beyond for their contractors by providing equipment and support for performing their role remotely.
- • Using working from home as a talent attraction strategy. More and more contractors are valuing flexibility from their employer.
- • Decommissioning of certain sites, and a number of projects wrapping up. Rather than offboarding these workers, clients have opted to engage them in other work that they can do remotely.
- • Reducing overheads through hot desking. Some clients have transitioned to a hot desk or activity based arrangement, where they can only have an 80% capacity in the office at any one time.
- • A rethinking of recruitment. Some clients are engaging workers from anywhere in Australia, and even overseas.
Due to COVID-19, employers are experiencing a talent shortage for critical niche rolls across all industries, brought about by the difficulty to source supplementary workers from overseas. With border closures, flight cancellations and issues with obtaining visas, it’s harder than ever to fly supplementary workers into Australia to perform work.

Some companies are opting to engage workers offshore, if they can complete tasks remotely. While this is solving the talent shortage, it introduces additional complexity including management of assets, foreign exchange, country-specific levy requirements, taxation and data security to name a few.

CXC ensures contingent workers have access to their systems, issuing required work permits and increasing activities to support their mental health. For one of our clients, many contractors were uncertain when they could enter the country. Rather than offboard them, potentially losing valuable talent, CXC ensured they could work remotely until they could enter Australia.

After further reading? Check out our recent blog posts on the subject:
- • Tax deductions for working from home?
- • Remote working in Australia – another fad or an overall trend?
- • Remote Work Trends 2021: What Is the Future Of Remote Work?
- • Managing workforce risk during COVID-19: The risks of remote working
- • CHECKLIST! Managing Remote Workers During COVID-19
It looks like a good number of your contractors work from home. The opportunity to work from home is highly desirable for workers. If implemented with sourcing on a location-agnostic basis, your company should benefit from a larger talent pool of candidates.

Currently, 50.1% of our contractors work from home at least some of the time. We measure this by the number of contractors that have signed a work from home declaration. Across CXC’s contractor workforce, in Australia and internationally, we have seen a 77% increase in contingent workers working remotely over the last two years.

We’ve seen a huge shift to remote working. This is especially true for IT contractors that could do their job from any location. In a recent survey across our entire contractor base, we found the following job roles to have the highest levels of working from home to some degree (that is, working from home all the time or working a blended week at home and in the office):
- • Data/Information/Solution Architect – 100% working from home to some degree.
- • Business/Data Analyst – 100% working from home to some degree.
- • Tester/Test Analyst/Engineer – 100% working from home to some degree.
- • Software Engineer/Developer/Designer – 96.03% working from home to some degree.
We found the following job roles to have the lowest levels of working from home:
- • Engineer/Civil Engineer – 50% working from home to some degree.
- • Customer Service – 52.63 working from home to some degree.
- • Administration Officer/Executive Assistant – 66.67 working from home to some degree.
We usually see low levels of contractors working from home for the following reasons:
- • A total talent perspective. When organisations have large numbers of permanent workers working from home, it makes sense to extend this opportunity to their contractor base. One of our clients goes above and beyond for their contractors by providing equipment and support for performing their role remotely.
- • Using working from home as a talent attraction strategy. More and more contractors are valuing flexibility from their employer.
- • Decommissioning of certain sites, and a number of projects wrapping up. Rather than offboarding these workers, clients have opted to engage them in other work that they can do remotely.
- • Reducing overheads through hot desking. Some clients have transitioned to a hot desk or activity based arrangement, where they can only have an 80% capacity in the office at any one time.
- • A rethinking of recruitment. Some clients are engaging workers from anywhere in Australia, and even overseas.
Due to COVID-19, employers are experiencing a talent shortage for critical niche rolls across all industries, brought about by the difficulty to source supplementary workers from overseas. With border closures, flight cancellations and issues with obtaining visas, it’s harder than ever to fly supplementary workers into Australia to perform work.

Some companies are opting to engage workers offshore, if they can complete tasks remotely. While this is solving the talent shortage, it introduces additional complexity including management of assets, foreign exchange, country-specific levy requirements, taxation and data security to name a few.

CXC ensures contingent workers have access to their systems, issuing required work permits and increasing activities to support their mental health. For one of our clients, many contractors were uncertain when they could enter the country. Rather than offboard them, potentially losing valuable talent, CXC ensured they could work remotely until they could enter Australia.

After further reading? Check out our recent blog posts on the subject:
- • Tax deductions for working from home?
- • Remote working in Australia – another fad or an overall trend?
- • Remote Work Trends 2021: What Is the Future Of Remote Work?
- • Managing workforce risk during COVID-19: The risks of remote working
- • CHECKLIST! Managing Remote Workers During COVID-19
Without knowing whether your contractors are working in the office or working from home, you may be neglecting your duty of care. This lack of knowledge can affect provisioning for office space, IT assets as well as ability to account for people if there is a requirement to do so.

Currently, 50.1% of our contractors work from home at least some of the time. We measure this by the number of contractors that have signed a work from home declaration. Across CXC’s contractor workforce, in Australia and internationally, we have seen a 77% increase in contingent workers working remotely over the last two years.

We’ve seen a huge shift to remote working. This is especially true for IT contractors that could do their job from any location. In a recent survey across our entire contractor base, we found the following job roles to have the highest levels of working from home to some degree (that is, working from home all the time or working a blended week at home and in the office):
- • Data/Information/Solution Architect – 100% working from home to some degree.
- • Business/Data Analyst – 100% working from home to some degree.
- • Tester/Test Analyst/Engineer – 100% working from home to some degree.
- • Software Engineer/Developer/Designer – 96.03% working from home to some degree.
We found the following job roles to have the lowest levels of working from home:
- • Engineer/Civil Engineer – 50% working from home to some degree.
- • Customer Service – 52.63 working from home to some degree.
- • Administration Officer/Executive Assistant – 66.67 working from home to some degree.
We usually see low levels of contractors working from home for the following reasons:
- • A total talent perspective. When organisations have large numbers of permanent workers working from home, it makes sense to extend this opportunity to their contractor base. One of our clients goes above and beyond for their contractors by providing equipment and support for performing their role remotely.
- • Using working from home as a talent attraction strategy. More and more contractors are valuing flexibility from their employer.
- • Decommissioning of certain sites, and a number of projects wrapping up. Rather than offboarding these workers, clients have opted to engage them in other work that they can do remotely.
- • Reducing overheads through hot desking. Some clients have transitioned to a hot desk or activity based arrangement, where they can only have an 80% capacity in the office at any one time.
- • A rethinking of recruitment. Some clients are engaging workers from anywhere in Australia, and even overseas.
Due to COVID-19, employers are experiencing a talent shortage for critical niche rolls across all industries, brought about by the difficulty to source supplementary workers from overseas. With border closures, flight cancellations and issues with obtaining visas, it’s harder than ever to fly supplementary workers into Australia to perform work.

Some companies are opting to engage workers offshore, if they can complete tasks remotely. While this is solving the talent shortage, it introduces additional complexity including management of assets, foreign exchange, country-specific levy requirements, taxation and data security to name a few.

CXC ensures contingent workers have access to their systems, issuing required work permits and increasing activities to support their mental health. For one of our clients, many contractors were uncertain when they could enter the country. Rather than offboard them, potentially losing valuable talent, CXC ensured they could work remotely until they could enter Australia.

After further reading? Check out our recent blog posts on the subject:
- • Tax deductions for working from home?
- • Remote working in Australia – another fad or an overall trend?
- • Remote Work Trends 2021: What Is the Future Of Remote Work?
- • Managing workforce risk during COVID-19: The risks of remote working
- • CHECKLIST! Managing Remote Workers During COVID-19
How many contractors are leaving before their contract finishes?*
- A low percentage of contractors (for example, 0–15%)
- A medium percentage of contractors (for example, 15–17.5%)
- A high percentage of contractors (for example, 20–25%+)
- I don’t know
It looks like you have low levels of contractor turnover. This means contactors are being retained for the length of their contract. In the long run, this will save you sourcing and retraining costs; it also points to low levels of contractor dissatisfaction.

Across our contractor base, 11.5% of our contractors have left before the end of their contract in the last 12 months. Additionally:
- • 8.3% of contractors leave within the first three months of their contract.
- • 5% of contractors leave after the first three months of their contract.
- • 10.5% of contractors leave in their extended contract.
When we see high levels of turnover among our client base due to a number of reasons:
- • Mergers and acquisitions, where the business is experiencing a dramatic restructuring. This usually ends up with regular drop offs during the course of the project.
- • Work that traditionally sees high turnover, such as customer service, technical support and sales, which often sees contractors finding a permanent job elsewhere.
- • When the client provides the contractor with almost too much notice period. We’ve seen examples of clients letting contractors know their contract will not be renewed six months out from the date. This leads to contractors seeking work elsewhere and dropping out.
We also see a correlation between contractor sentiment and higher amounts of turnover. We provide regular pulse surveys across our contractor base, where we judge how satisfied contractors are with their assignment.

Currently, 86.65% of contractors from the four clients with the lowest levels of turnover are satisfied or very satisfied with their assignment. Conversely, 76.9% of contractors from the four clients with the highest levels of turnover are satisfied or very satisfied with their assignment. It’s a small difference, but sentiment may be a component for why contractors leave their assignments early.

When clients have low levels of turnover, this is usually attributed to:
- • Contractor sentiment. The client has a good reputation in the marketplace, and high net promotor scores among the contractor population. They often have very few workplace complaints.
- • Contract length. Sometimes, this is because the contractors are on short contracts, so clients will let the contract run its course rather than terminating. Like we’ve highlighted before, this is prevalent in project-based work, where clients would prefer to keep contractors on the books just in case.
- • The COVID-19 pandemic. We’ve seen a number of clients have lower turnover during the pandemic, presumably because contractors aren’t confident enough to find another job.
To help reduce turnover, CXC has implemented a number of support systems to ensure contingent workers are set up for success.

In addition to providing our clients with visibility over tenure and turnover, CXC has implemented a number of support systems to improve the retention of contingent workers, including:
- • Pulse checks to get an understanding of any challenges.
- • Working with hiring managers to intervene if they are performing below expectations.
- • Contingent worker care and wellbeing initiatives.
- • Giving contingent workers earlier access to their pay.
After further reading? Check out our recent blog posts on the subject:
- • 3 ways HR Managers can harness HR data in 2021
- • Why You Should Apply Analytics To Your People Strategy…
- • 3 Factors to Improve and Measure Contingent Workforce Quality
It looks like you have high levels of contractor turnover. This can have significant consequences for your ability to retain business momentum and complete projects. Replacing a resource can cost businesses as much as 60% of a worker’s yearly salary, and the total costs can reach 200%.

Across our contractor base, 11.5% of our contractors have left before the end of their contract in the last 12 months. Additionally:
- • 8.3% of contractors leave within the first three months of their contract.
- • 5% of contractors leave after the first three months of their contract.
- • 10.5% of contractors leave in their extended contract.
When we see high levels of turnover among our client base due to a number of reasons:
- • Mergers and acquisitions, where the business is experiencing a dramatic restructuring. This usually ends up with regular drop offs during the course of the project.
- • Work that traditionally sees high turnover, such as customer service, technical support and sales, which often sees contractors finding a permanent job elsewhere.
- • When the client provides the contractor with almost too much notice period. We’ve seen examples of clients letting contractors know their contract will not be renewed six months out from the date. This leads to contractors seeking work elsewhere and dropping out.
We also see a correlation between contractor sentiment and higher amounts of turnover. We provide regular pulse surveys across our contractor base, where we judge how satisfied contractors are with their assignment.

Currently, 86.65% of contractors from the four clients with the lowest levels of turnover are satisfied or very satisfied with their assignment. Conversely, 76.9% of contractors from the four clients with the highest levels of turnover are satisfied or very satisfied with their assignment. It’s a small difference, but sentiment may be a component for why contractors leave their assignments early.

When clients have low levels of turnover, this is usually attributed to:
- • Contractor sentiment. The client has a good reputation in the marketplace, and high net promotor scores among the contractor population. They often have very few workplace complaints.
- • Contract length. Sometimes, this is because the contractors are on short contracts, so clients will let the contract run its course rather than terminating. Like we’ve highlighted before, this is prevalent in project-based work, where clients would prefer to keep contractors on the books just in case.
- • The COVID-19 pandemic. We’ve seen a number of clients have lower turnover during the pandemic, presumably because contractors aren’t confident enough to find another job.
To help reduce turnover, CXC has implemented a number of support systems to ensure contingent workers are set up for success.

In addition to providing our clients with visibility over tenure and turnover, CXC has implemented a number of support systems to improve the retention of contingent workers, including:
- • Pulse checks to get an understanding of any challenges.
- • Working with hiring managers to intervene if they are performing below expectations.
- • Contingent worker care and wellbeing initiatives.
- • Giving contingent workers earlier access to their pay.
After further reading? Check out our recent blog posts on the subject:
- • 3 ways HR Managers can harness HR data in 2021
- • Why You Should Apply Analytics To Your People Strategy…
- • 3 Factors to Improve and Measure Contingent Workforce Quality
It looks like you have high levels of contractor turnover. This can have significant consequences for your ability to retain business momentum and complete projects. Replacing a resource can cost businesses as much as 60% of a worker’s yearly salary, and the total costs can reach 200%.

Across our contractor base, 11.5% of our contractors have left before the end of their contract in the last 12 months. Additionally:
- • 8.3% of contractors leave within the first three months of their contract.
- • 5% of contractors leave after the first three months of their contract.
- • 10.5% of contractors leave in their extended contract.
When we see high levels of turnover among our client base due to a number of reasons:
- • Mergers and acquisitions, where the business is experiencing a dramatic restructuring. This usually ends up with regular drop offs during the course of the project.
- • Work that traditionally sees high turnover, such as customer service, technical support and sales, which often sees contractors finding a permanent job elsewhere.
- • When the client provides the contractor with almost too much notice period. We’ve seen examples of clients letting contractors know their contract will not be renewed six months out from the date. This leads to contractors seeking work elsewhere and dropping out.
We also see a correlation between contractor sentiment and higher amounts of turnover. We provide regular pulse surveys across our contractor base, where we judge how satisfied contractors are with their assignment.

Currently, 86.65% of contractors from the four clients with the lowest levels of turnover are satisfied or very satisfied with their assignment. Conversely, 76.9% of contractors from the four clients with the highest levels of turnover are satisfied or very satisfied with their assignment. It’s a small difference, but sentiment may be a component for why contractors leave their assignments early.

When clients have low levels of turnover, this is usually attributed to:
- • Contractor sentiment. The client has a good reputation in the marketplace, and high net promotor scores among the contractor population. They often have very few workplace complaints.
- • Contract length. Sometimes, this is because the contractors are on short contracts, so clients will let the contract run its course rather than terminating. Like we’ve highlighted before, this is prevalent in project-based work, where clients would prefer to keep contractors on the books just in case.
- • The COVID-19 pandemic. We’ve seen a number of clients have lower turnover during the pandemic, presumably because contractors aren’t confident enough to find another job.
To help reduce turnover, CXC has implemented a number of support systems to ensure contingent workers are set up for success.

In addition to providing our clients with visibility over tenure and turnover, CXC has implemented a number of support systems to improve the retention of contingent workers, including:
- • Pulse checks to get an understanding of any challenges.
- • Working with hiring managers to intervene if they are performing below expectations.
- • Contingent worker care and wellbeing initiatives.
- • Giving contingent workers earlier access to their pay.
After further reading? Check out our recent blog posts on the subject:
- • 3 ways HR Managers can harness HR data in 2021
- • Why You Should Apply Analytics To Your People Strategy…
- • 3 Factors to Improve and Measure Contingent Workforce Quality
It’s important to have a clear idea of how many contractors are leaving your business before the end of their contract. This might point to wider issues around the nature of their work, their level of satisfaction and inefficient processes that are creating a barrier. Additionally, this lack of visibility means inaccurate budgeting and forecasting for contingent labour.

Across our contractor base, 11.5% of our contractors have left before the end of their contract in the last 12 months. Additionally:
- • 8.3% of contractors leave within the first three months of their contract.
- • 5% of contractors leave after the first three months of their contract.
- • 10.5% of contractors leave in their extended contract.
When we see high levels of turnover among our client base due to a number of reasons:
- • Mergers and acquisitions, where the business is experiencing a dramatic restructuring. This usually ends up with regular drop offs during the course of the project.
- • Work that traditionally sees high turnover, such as customer service, technical support and sales, which often sees contractors finding a permanent job elsewhere.
- • When the client provides the contractor with almost too much notice period. We’ve seen examples of clients letting contractors know their contract will not be renewed six months out from the date. This leads to contractors seeking work elsewhere and dropping out.
We also see a correlation between contractor sentiment and higher amounts of turnover. We provide regular pulse surveys across our contractor base, where we judge how satisfied contractors are with their assignment.

Currently, 86.65% of contractors from the four clients with the lowest levels of turnover are satisfied or very satisfied with their assignment. Conversely, 76.9% of contractors from the four clients with the highest levels of turnover are satisfied or very satisfied with their assignment. It’s a small difference, but sentiment may be a component for why contractors leave their assignments early.

When clients have low levels of turnover, this is usually attributed to:
- • Contractor sentiment. The client has a good reputation in the marketplace, and high net promotor scores among the contractor population. They often have very few workplace complaints.
- • Contract length. Sometimes, this is because the contractors are on short contracts, so clients will let the contract run its course rather than terminating. Like we’ve highlighted before, this is prevalent in project-based work, where clients would prefer to keep contractors on the books just in case.
- • The COVID-19 pandemic. We’ve seen a number of clients have lower turnover during the pandemic, presumably because contractors aren’t confident enough to find another job.
To help reduce turnover, CXC has implemented a number of support systems to ensure contingent workers are set up for success.

In addition to providing our clients with visibility over tenure and turnover, CXC has implemented a number of support systems to improve the retention of contingent workers, including:
- • Pulse checks to get an understanding of any challenges.
- • Working with hiring managers to intervene if they are performing below expectations.
- • Contingent worker care and wellbeing initiatives.
- • Giving contingent workers earlier access to their pay.
After further reading? Check out our recent blog posts on the subject:
- • 3 ways HR Managers can harness HR data in 2021
- • Why You Should Apply Analytics To Your People Strategy…
- • 3 Factors to Improve and Measure Contingent Workforce Quality

Human capital diagnostic tool

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