I once worked with a manufacturing firm that relied heavily on a temporary-to-hire model for its hourly workforce. Despite offering market-competitive wages, comfortable working conditions, and a clear opportunity for full-time employment within a few months, the organization struggled with persistent temporary employee turnover.

A closer look at the data revealed a clear and consistent pattern: most turnover occurred within the first 30 days of employment. Temporary employees who made it past that initial window were highly likely to stay long enough to convert to full-time roles. With that insight, our focus shifted from questioning compensation or working conditions to understanding what was happening during those critical first weeks — and how those early experiences influenced long-term retention.

To better understand the issue, we analyzed turnover data and convened a focus group representing multiple perspectives, including senior operational leadership, frontline supervisors, full-time employees who had entered through the temporary-to-hire process, newer contingent workers, and representatives from our staffing agency partners.

Several consistent themes emerged. New hires often felt they “fell through the cracks” and were viewed as disposable. Many reported being rushed through training, overlooked by full-time peers and leadership, unclear about performance expectations, and uncertain whether longer-term opportunities truly existed within the organization. In short, they lacked connection, clarity, and feedback during the period when those elements mattered most.

Working in partnership with our staffing agencies, corrective measures were implemented to address these gaps. The result was a meaningful and sustained improvement in temporary employee retention.

While this example comes from a manufacturing environment, the implications extend well beyond the plant floor. Whether in hands-on production roles or professional positions such as engineering or administrative support, turnover among contingent workers carries real costs. Retraining expenses, lost productivity, diminished morale, and supervisor frustration affect organizations regardless of employment classification.

At the same time, many employers intentionally treat contingent workers differently in certain areas — such as benefits, perks, or formal performance counseling — as a risk-management practice designed to avoid claims of “co-employment.” This legal concept gained prominence in cases such as Vizcaino v. Microsoft, where long-term contract workers successfully argued they were treated as employees in nearly every respect except pay and benefits, leading to significant liability related to worker classification and benefit eligibility.

Co-employment remains a gray area for many employers, particularly those that rely heavily on temporary labor. However, with thoughtful practices and guidance from legal counsel, organizations can support contingent workers in ways that foster engagement and retention without crossing legal boundaries.

Research consistently shows that contingent workers tend to feel lower levels of organizational commitment than their full-time counterparts. Much of this gap can be traced to onboarding quality, communication, and the degree to which workers feel supported in their roles. Importantly, studies also show that commitment increases when contingent workers operate in well-structured, supportive environments.

Employers seeking to improve contingent worker satisfaction and retention should consider the following practices:

• Develop intentional guidelines for how contingent workers will be managed and supported, with retention goals, performance expectations, and co-employment considerations clearly addressed. Supervisors should be trained accordingly. 
• Treat day one as a meaningful experience. First impressions matter for all workers. Ensure workspaces are welcoming, equipment and system access are ready, and training is well-coordinated.
• Engage the leadership chain in early check-ins. When appropriate, leaders beyond the immediate supervisor-such as department managers or operations leaders-should intentionally check in with new hires during the first few weeks. These interactions can reinforce expectations, demonstrate organizational interest, and ensure the worker feels visible rather than overlooked. Even brief, informal touchpoints can significantly influence early commitment.
• Assign a “buddy” to help new workers navigate day-to-day logistics — such as break locations, lunch options, and informal workplace norms while avoiding performance feedback or employment-related guidance.
• Provide intentional communication and follow-up. Create space for questions, ensure expectations are clearly understood, and reinforce where workers should go for support.
• Highlight development and future opportunities. While contingent workers may not be eligible for internal promotions, visibility into full-time openings or career pathways can reinforce longer-term commitment. Posting open roles in shared spaces accessible to all workers is a simple and effective practice.
• Involve the staffing firm in all HR-related matters, including performance conversations, attendance issues, and termination decisions. Clear role alignment between client and staffing partner is critical to both retention and risk mitigation.

Retaining contingent workers does not require treating them as employees. It requires treating them as people – with clarity, respect, and consistency – while maintaining appropriate legal and operational boundaries. When employers focus on improving the work experience, they can reduce turnover and build a more stable, productive workforce – regardless of classification.  

Note: this article is not intended to provide legal advice. Legal counsel should be sought regarding matters related to employee classification, co-employment, and employment law.

Sources
Davis, E., & Liam-Johnson, E. (2025). Permanent vs. contingent workers: Organizational commitment in diverse employment frameworks.
Mosquera, P., & Soares, M. (2025). Onboarding: A key to employee retention and workplace well-being. Review of Managerial Science.

Interested in learning about how ASE can support your temporary hiring needs?

Contact Dan Van Slambrook, Staffing Director