How to extend the contractor lifecycle and cut acquisition costs.

This is a guest blog by Lynne Gowers Senior Marketing Executive at  REC business partner Liquid Link.

In a volatile economy, recruitment agencies are under increasing pressure to fill roles quickly amidst rising resourcing costs and a shrinking talent pool. As competition for skilled contractors intensifies, many agencies are rethinking their approach to worker placements.

One strategy that is often overlooked, yet offers substantial cost-saving potential, is redeployment. By extending the contractor lifecycle, agencies can significantly reduce acquisition costs while satisfying client demand.

The financial impact of redeployment

Let’s get down to it; acquiring new contractors is expensive. From advertising and resourcing to compliance checks and screening, the outlay at the start of a contractor’s lifecycle can soon mount up. In contrast, redeployment, the practice of re-engaging contractors for new assignments as their current ones end, can help agencies reduce these costs. In fact, research suggests that agencies that double their redeployment rate can increase gross revenue by up to 20%.

Extending the contractor lifecycle through repeat assignment redeployment lowers the need for expensive candidate searches, compliance verification and onboarding processes, thus improving cost efficiency. Agencies can maintain a skilled workforce without the need to constantly source new talent, ultimately conserving profitability.

The challenge of tracking redeployment

Yet despite clear financial benefits, many agencies don’t measure redeployment rate. According to industry data, less than 6% of agencies actively monitor how often contractors are re-engaged after their initial assignment. This is a crucial metric for agency efficiency, but as Liquid Friday’s CEO, Colin Gunnell, highlights, it can be difficult to track:

“Agencies are often focused on filling positions immediately, meaning they may not be aware of when a contractor’s assignment ends. Without structured communication or standardised reporting, agencies can struggle to redeploy workers effectively.”

Why contractors value redeployment

A commonly held view is that contractors are indifferent to redeployment opportunities. However, research shows that nearly half (45%) of contractors actively seek new roles while still on assignment. Contractors value seamless transitions between jobs and are more likely to remain loyal to agencies that make this happen and lessen any non-earning downtime between assignments.

For agencies then, extending the contractor lifecycle is a win-win. Every additional assignment actively cuts acquisition costs. Agencies that put energy into redeploying contractors not only increase talent retention, but also benefit from reduced cost-per-placement and a more sustainable business model.

How technology can help - enter Liquid Stride! 

First and foremost, agencies need real-time visibility into contractor availability. Traditional methods, such as waiting for contractors to reach out or manually tracking assignment end dates, are inefficient and can lead to missed opportunities. 

Liquid Friday’s Stride technology offers a solution. Stride provides real-time contractor status updates, enabling agencies to redeploy workers more effectively and extend their lifecycle with their agency, rather than looking elsewhere for their next gig. 

●    Stride forecasts when a contractor’s assignment is likely to end, helping agencies plan ahead.
●    Agencies get a live view of contractors’ availability, making it easier to redeploy them where needed.
●    Stride modifies agencies when contractors are ready for their next assignment, eliminating delays.
●    Sride also simplifies onboarding, compliance and referrals, saving recruiters time and money.

For some real-life examples of how Stride is helping agencies cut costs and boost efficiency, explore our case studies here. 

Extending the contractor lifecycle isn’t just about retention and engagement - it’s a cost-saving strategy that directly impacts a recruitment agency’s bottom line. The technology is out there (Liquid Stride!) to help recruiters increase the numbers of contractors they place on repeat assignments. In so doing, agencies reduce acquisition costs and improve efficiency, all while maintaining a skilled, loyal contractor pool. 

Learn more about Liquid Link