Hiring temporary, or contingent, workers has become an essential strategy for managing a successful workforce in many industries. Temporary workers typically work for a specified amount of time, or contract length.
These workers can support a specific project, address seasonal shifts in demand, or even join your company for a long-term assignment that turns into a full-time position. Ultimately, the goal is to retain them for their entire shift or project, which isn’t always that simple.
At the end of the day, your bottom line depends on your employees. It is notoriously more expensive to replace someone than it is to retain one, even if they are a contingent worker.
In this article, we’ll discuss how to reduce employee turnover. We’ll cover:
- Common reasons why temporary workers leave assignments early
- Seven proven strategies for reducing employee turnover
- How to partner with staffing agencies to minimize turnover
- Best practices for creating a retention-focused workplace culture
- Real-world tactics that keep temporary workers engaged throughout their assignments
But first let’s discuss the causes of employee turnover among temp workers.
Why do temporary workers leave early?
Understanding the root causes of employee turnover is the first step in learning how to reduce employee turnover effectively. Temporary workers face unique challenges that can lead them to abandon assignments before completion.
Lack of integration and belonging
The most common reason temporary workers leave early is feeling like outsiders. When contingent workers aren't properly introduced to teams or included in workplace culture, they quickly become disengaged. This isolation creates a psychological barrier that makes it easier for them to walk away when better opportunities arise.
Inadequate compensation
Many companies mistakenly believe temporary workers will accept below-market wages simply because their positions are temporary. This outdated thinking is a primary driver of employee turnover. Today's contingent workers know their worth and won't hesitate to leave for better-paying opportunities.
Poor communication and unclear expectations
When temporary workers don't understand their role, performance metrics, or how their work contributes to larger goals, frustration builds quickly. Ambiguous job descriptions and inconsistent feedback create uncertainty that often leads workers to seek clearer opportunities elsewhere.
Inadequate onboarding and support
A rushed or nonexistent onboarding process sets temporary workers up for failure. Without proper training, introductions, and ongoing support, even the most qualified workers may struggle to succeed, leading to voluntary turnover or performance-related dismissals.
7 strategies to reduce employee turnover
How do you get high-quality temporary workers to stick around?
The key is to build that sense of attachment or belonging in the workplace. Help the temporary workers realize they’re part of the team and recognize them for their work.
What steps should you take to do that? Here are some ideas for reducing employee turnover.
1. Pay enough
Don’t assume temporary workers expect less because their position is temporary. If you do, then you shouldn’t be surprised when they leave early. To keep a temporary worker for the entire project, you need to pay market-level wages, or even more.
Since July 2021, there’s been a seismic shift in which hourly employees are commanding significant wage increases. A workforce solution partner may have access to business intelligence tools that can inform you of the appropriate pay rate for your region, the desired skills, and length of previous experience.
The point of contingent labor is not to save money on wages. The point is to switch some labor costs from fixed to variable. This way, you can easily adjust your headcount when production demands increase without increasing your full-time employees (FTEs).
2. Start on the right foot
Day one is crucial in setting the tone for the work environment. First impressions are lasting impressions. Therefore, you should thank your temporary worker for showing up and let them know where they fit into the bigger picture.
Introduce them to their coworkers. Give them a first-day tour of the office or facility. Explain the value their skill set brings to the overall goals of the job.
3. Set clear expectations
Just like with full-time workers, contingent employees benefit from understanding exactly what is expected of them. Take the time to review their job description, explain any performance or quota requirements, and go over workplace policies (breaks, call-offs, safety requirements, etc.).
Provide written documentation of key expectations and deadlines. Schedule regular check-ins during their first week to ensure they understand their responsibilities and address any confusion early. Clear communication about performance standards, reporting structures, and project timelines helps prevent the frustration that often leads to employee turnover.
Don't forget to explain company-specific processes, software systems, and procedures they'll need to navigate successfully. The more comprehensive your expectation-setting, the better equipped they'll be to succeed.
4. Update your terminology
One of the simplest things you can do to improve the employee experience is by updating how you refer to temp workers. According to a survey conducted by Staffing Industry Analysts, the most popular preferences are to be called “consultant” (30%), “contractor” (30%), or “associate” (14%).
This small change in language signals respect and professionalism. It contributes to a positive workplace culture that naturally supports reducing employee turnover.
5. Create a mentor program
Try connecting each temporary employee with a full-time employee as a mentor. Your full-time employee will have their workload to complete already, so this shouldn’t be onerous.
Encourage the mentor to extend a warm welcome and offer their assistance with any questions that arise to provide a positive impact and experience for the associate. Effective mentorship programs have been shown to significantly improve retention rates and create stronger workplace relationships.
Provide mentors with basic guidelines about their role and time commitment. Even 15-20 minutes of weekly check-in time can make a substantial difference in how connected temporary workers feel to your organization.
6. Create an incentive program
You can let the employee know at the outset that they’ll earn a monetary reward if they complete the assigned project or stay on the job for a minimum amount of time. When thinking about how to reduce employee turnover, consider other successful programs such as refer-a-friend and attendance bonuses.
Structure incentives to reward milestone achievements, perhaps a bonus at 30 days, 60 days, and project completion. These programs give workers tangible goals to work toward and demonstrate your commitment to their success.
7. Provide regular feedback and recognition
Temporary workers often feel invisible in workplace recognition programs, yet they crave acknowledgment just as much as permanent employees. Implement regular feedback sessions not just when problems arise, but to celebrate successes and progress.
Create opportunities for public recognition, whether through team meetings, company newsletters, or informal shout-outs. When temporary workers feel valued and appreciated, they're much more likely to complete their assignments successfully. This strategy is particularly effective for reducing employee turnover in longer-term temporary assignments.
Where do staffing agencies fit into the equation of reducing employee turnover?
Nearly all temporary workers get hired through a staffing agency, so how do you decide which agency is the best choice? You want to choose an agency that’ll provide quality workers who will stay for the complete assignment or project.
No problem, right? All the agencies are pretty much the same.
Not true.
Most staffing companies have specific sectors or industries that they tend to serve more than others. Make sure to choose a partner with a breadth of experience in your vertical.
You should also evaluate their core values and approach. You want a partner who will put your relationship above the transaction, one who will provide value-added advice, data, and services.
When vetting options, ask detailed questions about their past experience with the roles you’re looking to fill. Once you’ve determined an agency has experience filling the exact type of positions you’re looking for and a good service mentality, here are some questions to ask them about reducing employee turnover:
- How have you worked with other companies to manage employee turnover? What you don’t want in response is something like, “We’ve never thought of that before.” They don’t necessarily need a fancy program, but they should show they’ve worked with other companies to address the issue of employee turnover.
- Tell me how your screening process surfaces the best applicants in the shortest amount of time. The best employees are going to be selected fast, so screening should be adequate and timely.
- Tell me about a time you resolved a worker problem. This question is known as behavioral interviewing. The answer should provide verifiable and concrete evidence for solving the problem of employee turnover.
- How do you stay in contact with active associates? A successful agency doesn’t stop working with a candidate once they begin their contract. The best ones will continually be in contact with workers to find out how the assignment is going, answer questions, and even congratulate them on certain milestones. These small touches go a long way in reducing employee turnover.
Remember, you’re not looking for a vendor. You’re looking for a partner that knows how to reduce employee turnover.
How can you work with a staffing agency to reduce turnover?
Make sure you’re on the same page in how you view contingent labor — and make sure the workers understand as well: temporary workers are just as important as permanent employees.
Each one brings specific talents to the task. It’s an easy trap to fall into to think that churn is just the nature of the temporary staffing business.
When you choose Nesco Resource, you’re choosing a staffing partner that will help keep associates at your company for their complete assignment. We have deep experience filling engineering, IT, clerical, light industrial, accounting, and financial jobs.
We know these verticals. Not only that, but we’re passionate about our approach: we make the personnel process personal. You’re not just a number or a means to an end, you’re a true partner for