8 Keys to Retaining Independent Talent
Today’s workforce is undergoing a significant transformation. According to recent Gallup research, more than 50% of workers are actively job hunting, while a global PwC survey found that one in four employees plan to leave their jobs within the next 12 months.
But where are these workers going? Many are shifting away from traditional employment toward contingent work. In fact, 86% of global business leaders say effectively managing on-demand talent is now critical to company performance.
For talent suppliers and end clients alike, understanding how to attract and retain independent workers is essential for building a stable, high-performing flexible workforce. Here are eight key factors influencing contingent worker retention, along with actionable strategies to strengthen your relationships with independent talent.
1. Work Flexibility and Autonomy
Contingent workers often choose non-permanent arrangements specifically for the flexibility they provide. Unlike traditional employees seeking better work-life balance within their roles, independent contractors and freelancers value the autonomy to control their own schedules and work environments.
To attract and retain top contingent talent:
- Offer -based work with flexible deadlines when possible
- Allow remote work options to accommodate varying lifestyles and locations
- Minimize unnecessary meetings and respect their time boundaries
- Create clear project expectations about deliverables while allowing freedom in execution
While research on traditional employment shows that workers with high levels of autonomy report lower burnout rates, this principle is even more applicable to independent workers, who often choose contingent arrangements specifically for this autonomy.
2. Fair Workload and Scope Management
Scope creep is a major concern for contingent workers. When projects expand beyond initial agreements without corresponding compensation adjustments, contractors become frustrated and may decline future opportunities. While burnout is well-documented in traditional employment settings, independent workers face similar challenges when managing multiple clients and projects simultaneously.
To maintain positive relationships with your contingent workforce:
- Document clear project scopes and deliverables at the outset
- Implement change management processes for when requirements shift
- Compensate fairly for additional work requests
- Build in buffer time for contingencies in project timelines
Scope management is a critical factor in contractor satisfaction and their willingness to accept future projects.
3. Growth and Skill Development Opportunities
Contrary to common assumptions, contingent workers value professional development just as much as permanent employees. The key difference lies in how they pursue growth—through diverse project experiences rather than climbing traditional career ladders.
To support their development and increase retention:
- Offer increasingly complex or challenging projects to trusted contractors
- Provide access to training resources or industry certifications
- Create opportunities to learn new technologies or methodologies
- Facilitate mentorship connections within your organization
Independent professionals who see tangible skill advancement through your projects are much more likely to prioritize your organization when selecting future opportunities. Without this growth trajectory, even your most reliable contractors will eventually seek more fulfilling work elsewhere.
4. Clear Communication and Expectations
Change is inevitable in today’s business environment, but poorly managed change is a major driver of disengagement. For contingent workers who lack the security of traditional employment, unclear expectations and communication gaps can be even more disruptive than for permanent employees.
Effective communication is even more critical in contingent relationships than in traditional employment. Without daily office interactions, miscommunications can quickly derail projects and relationships.
Improve retention through better communication by:
- Establishing preferred communication channels and response times upfront
- Creating detailed briefs with clear objectives and success criteria
- Scheduling regular check-ins to address questions and provide feedback
- Being transparent about future project opportunities and timelines
When contingent workers understand exactly what’s expected and how their work contributes to broader goals, engagement and retention improve meaningfully.
5. Quality of Management Relationships
The relationship between contingent workers and their direct contacts at talent suppliers or end clients dramatically influences retention. While they don’t need the same type of management as permanent employees, they do require responsive, respectful partnership.
To strengthen these relationships:
- Train internal teams on effectively managing contingent talent
- Designate specific points of contact who understand contractor needs
- Implement feedback systems to identify and address relationship issues
- Recognize that management approaches differ between employees and contractors
Remember that independent workers often have multiple client options—they’ll continue working with organizations that treat them as valued partners rather than commodities.
6. Inclusive and Respectful Treatment
Although contingent workers aren’t employees, they still want to feel respected and included. Organizations that create a divide between permanent and contingent staff often struggle with independent talent retention. While research on workplace culture typically focuses on traditional employment, contingent workers are similarly affected by disrespectful treatment, exclusion, and toxic environments.
Foster inclusion by:
- Inviting contractors to relevant team meetings and discussions
- Providing necessary context and background information for projects
- Acknowledging contingent workers’ contributions in team settings
- Avoiding language that emphasizes “outsider” status
When contingent workers feel like valued team members rather than outside vendors, they develop stronger connections to your organization and are more likely to prioritize future opportunities with your team.
7. Recognition and Appreciation
Independent workers value recognition just as much as traditional employees. However, their needs differ slightly—they seek acknowledgment of their expertise and impact rather than corporate reward programs. Studies on employee retention consistently show that recognition significantly reduces turnover, and this principle applies to contingent workers as well.
Effective recognition strategies include:
- Providing specific, meaningful feedback about their contributions
- Sharing how their work positively impacted business outcomes
- Offering testimonials or references for their professional portfolios
- Creating preferred contractor programs for top performers
Public recognition can be particularly valuable, as it helps contingent workers build their professional reputations and secure future opportunities.
8. Competitive Compensation and Prompt Payment
Perhaps the most fundamental aspect of retaining contingent talent is reliable, competitive compensation. Independent workers face more financial uncertainty than traditional employees, making payment reliability crucial.
To meet these needs:
- Research current market rates to ensure competitive compensation
- Implement efficient invoicing and payment systems
- Adhere strictly to payment terms and deadlines
- Consider early payment options for long-term contractors
- If employing contingent workers, provide region-specific benefits aligned with local workforce expectations
Studies show that payment delays are among the top reasons contingent workers decline repeat engagements, with many saying they’ve turned down work from clients with poor payment practices.
Building a Sustainable Contingent Talent Strategy
By addressing these eight factors, talent suppliers and end clients can measurably improve retention rates among their contingent workforce. A comprehensive approach combines understanding independent workers’ unique needs, establishing clear communication channels, and creating systems that support positive long-term relationships.
At People2.0, we understand the complexities of workforce management across staffing, search and recruiting, mass talent procurement, and professional services. Our solutions help talent suppliers and end clients navigate these challenges while creating win-win relationships between all parties in the talent ecosystem, especially during talent shortages.
Looking to optimize your contingent workforce management and improve retention? Contact us to learn more about how our EOR and AOR services can support your talent strategy.
