New Research Finds Business Leaders Spend Nearly Half of Their Time Every Day Coping with Employee Turnover
Survey also reveals a growing disconnect between employers and employees on a wide range of issues including benefits and professional development
IRVINE, Calif. and LONDON – AUGUST 3, 2022 – Kantata, the leading global supplier of purpose-built technology for professional services, today released new research that illuminates senior executives at professional services organizations spend 40% of their time each day dealing with employee turnover and over half (53%) have a problem hiring full-time employees. This issue will not slow down as 43% of full-time employees surveyed have one foot out the door because they envy the freedoms they perceive independent contractors enjoy.
Kantata’s upcoming report, “The Changing Dynamics of the Modern Workforce,” paints a picture of frustrated team managers and senior executives regularly pulled away from their work to deal with churn yet remain unable to build and manage their workforces effectively. The report is based on a survey of more than 1,500 services professionals.
The findings confirm that the Great Resignation is not just a trend, but a radical and permanent transformation of global workforces.
- 76% of the independent contractors surveyed were full-time employees just one year ago.
- 43% of FTEs are considering leaving their jobs to become independent contractors. That number is higher (52%) among younger workers who represent both Gen Z and Millennials.
“Considering the number of full-time employees that made the jump over the past year to freelancers, and how many others are tempted to, business leaders should consider expanding their talent pool of independent contractors and investing in the technology needed to effectively integrate them into the business,” said Kantata CEO Michael Speranza. “Building the best team with the skillset to successfully deliver results is the utmost priority for all companies in professional services.”
Business leaders identified a number of contributors to high turnover rates. Surprisingly, compensation ranks low on list behind a number of factors including:
- Healthcare benefits are not competitive (42%)
- PTO and vacation days are too difficult to accumulate (42%)
- 401k benefits are not competitive (39%)
- Lack of a continuing education benefit to support employees’ professional growth (35%)
The report also identifies steps companies can take to reduce churn, build networks of independent contractors to create competitive advantages, and spend more of their time on growing their businesses.
92% of FTEs said they would feel more loyal to companies that invested in their professional development goals. Similarly, 76% of independent contractors indicated they would like the companies they work with to provide perks such as paying for certifications, continuing education and masterclasses.
“This finding is important because it sheds light on how companies can build long-lasting relationships with freelancers instead of scrambling to find people who have requisite skill sets on a project-by-project basis,” said Speranza. “Independent contractors want to work for companies that let them perform work that they find engaging, develop new skills, and build their expertise – and they have plenty of options to choose from.”
For recommendations on what organizations can do to spend less time battling churn, please attend Kantata’s upcoming webinar with TSIA, “Staying Ahead of the Changing Dynamics of the Modern Services Workforce.”
Additional findings from the survey will be released in the coming weeks and the full report “The Changing Dynamics of the Modern Workforce,” will be released in the fall.
Conducted in June 2022 by Atomik Research, the survey queried 1,502 full-time employees and independent contractors in the professional services industry.
Kantata takes professional services automation to a new level, giving people-powered businesses the clarity, control, and confidence they need to optimize resource planning and elevate operational performance. Our purpose-built cloud software is helping over 2,000 professional services organizations in more than 100 countries focus and optimize their most important asset: their people. By leveraging the Kantata Industry Cloud for Professional ServicesTM, professionals gain access to the information and tools they need to win more business, ensure the right people are always available at the right time, and delight clients with project delivery and outcomes.