In today's dynamic engineering landscape, contractors play a pivotal role in delivering critical projects and bringing specialist expertise to organisations.
However, the way many businesses treat their contractors can often create unnecessary barriers and potentially damage their ability to attract top talent in an already limited pool. At JAM, we've seen firsthand how the right approach to contractor management can make the difference between project success and failure.
We asked contractors about their biggest pain points, and here’s what they said:
🔹 Delayed, late, or no payment (36%) – The most significant frustration by far! Contractors rely on timely payments, and when companies delay, it can create serious financial strain. Businesses that depend on contract workers need to ensure a smooth and reliable payroll process to build trust and long-term relationships.
🔹 Short-term rolling contracts (24%) – While some enjoy the flexibility, uncertainty around contract renewals can make it difficult to plan ahead. Contractors thrive when they have clear visibility on their future workload and aren’t left in limbo.
🔹 Last-minute contract extensions (20%) – It might seem like a positive that a contract is extended, but without notice, it can disrupt planning, other job opportunities, or even personal commitments. Clear communication from employers is key here.
🔹 Excluded from workplace perks (19%) – Contractors may not expect the full benefits of permanent employees, but being excluded from basic perks like team events or professional development opportunities can make them feel disconnected from the company culture. A little inclusivity can go a long way!
The Hidden Costs of Contractor Discrimination
Despite commanding higher day rates, contractors often face subtle yet impactful forms of workplace discrimination. From different coloured lanyards and restricted car park access to exclusion from office facilities like canteens, these seemingly small distinctions can create a toxic "us versus them" culture. What many organisations fail to realise is that these practices can have far-reaching consequences in the tight-knit contractor community.
"The engineering contractor network in the UK, particularly within cleared environments, is remarkably close-knit," explains JAM's senior engineering recruiter, Tom McGuire. "When contractors have negative experiences, word spreads quickly, especially among those with specific clearances or niche skill sets."
Contract Extensions: The Importance of Clear Communication
One of the most significant pain points for contractors is the uncertainty around contract extensions. Consider this scenario: A contractor is approaching the end of their current engagement, and with just days to go, they're finally informed about a potential extension. By this point, they may have already committed to another contract, forcing the organisation to start the hiring process again.
Best practices for contract extensions include:
Providing clear timelines for extension decisions at least a month in advance
Offering longer-term contracts when possible (12 months versus rolling monthly)
Being transparent about project durations, especially for long-term initiatives
Maintaining regular communication about project progress and future needs
The Business Case for Contractor Integration
While contractors may command higher rates, they often miss out on the benefits permanent employees receive, such as salary reviews, bonuses, and career development opportunities. Progressive organisations are recognising that investing in contractor wellbeing and integration pays dividends in terms of productivity and loyalty.
Consider the cyclical nature of contracting. Today's contractor might be tomorrow's critical emergency cover when a permanent staff member takes extended leave. Building positive relationships with your contractor workforce creates a reliable talent pool you can call upon when needed – and in the current talent drought, that’s more crucial than ever.
Streamlining the Onboarding Process
The onboarding process can be particularly challenging for contractors, especially in sectors that require security clearance. At JAM, we've invested in automated referencing software to expedite this process, understanding that every week spent in onboarding is a week without income for the contractor.
Key considerations for efficient onboarding:
Streamlined reference checking that acknowledges the nature of contract work
Proactive security clearance management
First-day readiness with all IT systems and access cards prepared
Clear communication of project objectives and expectations
The Impact on Your Talent Pool
If you need security-cleared contractors or specific technical expertise, your candidate pool is already limited. In these situations, maintaining a positive reputation within the contractor community becomes even more crucial. One negative experience can ripple through the network, making it increasingly difficult to attract top talent for future projects.
Building a Contractor-Friendly Culture
Creating a positive contractor experience doesn't require a complete organisational overhaul. Simple changes can make a significant difference:
Treating contractors as valued team members regardless of employment status
Providing clear project scope and expectations
Ensuring timely payment processing
Including contractors in relevant team communications and meetings
Offering equal access to workplace facilities
Educating staff about the critical role contractors play in project delivery
The Long-Term Benefits
Organisations that treat contractors well often find they benefit from:
Increased contractor loyalty and availability for future projects
Positive word-of-mouth referrals leading to easier talent acquisition
Higher quality deliverables due to better engagement and integration
Reduced time and costs associated with contractor turnover
Access to a broader network of specialist skills through contractor recommendations
Conclusion
In the competitive UK engineering sector, your treatment of contractors can be a key differentiator in attracting and retaining top talent. While contractors may not be permanent employees, their impact on your business success is significant and lasting. By creating a more inclusive and respectful environment for contractors, organisations can build a reliable network of skilled professionals ready to contribute to their success.
Remember, in the interconnected world of engineering contracting, your reputation as an employer can precede you. Make sure it's one that attracts rather than repels the talent you need.
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