
This blog explores actionable strategies to boost worker loyalty and reduce churn in the labour-hire sector. Prioritising labour hire retention is not only beneficial; it's essential in today's skills-short market in Australia.
Top 5 retention strategies for temp workers in labour hire:
- Start redeployment conversations early
- Use check-ins to build trust
- Offer loyalty rewards
- Collect and act on feedback
- Stay connected post-assignment
The Retention Problem in Labour Hire
High turnover is a persistent challenge in the labour hire industry. According to the Australian HR Institute (AHRI), the 12-month average employee turnover to the end of December 2024 was 16%, a 1% increase from the previous year.
According to Jobs and Skills Australia's December 2024 Occupation Shortage Report, the national job vacancy fill rate rose by 0.8 percentage points to 68.9%, suggesting a slight easing in occupation shortages. However, nearly one-third of positions remain unfilled, underscoring persistent challenges in meeting labour demands.
The financial implications are substantial. A study highlighted by HRD Australia found that the average cost to hire an employee in Australia has surged to $23,000 per candidate, up from around $10,000 the previous year.
What Today’s Temp Workers Actually Want
While competitive pay is important, today's temp workers seek more from their employers:
- Respectful Communication: clear and consistent communication fosters trust and engagement.
- Regular Work Opportunities (Redeployment): knowing a subsequent assignment lined up enhances job security.
- Career Pathways (Upskilling): opportunities for training and development signal investment in workers' futures.
- Recognition and Feeling Valued: acknowledgement of hard work boosts morale and loyalty.
Based on responses from over 14,000 candidates, SEEK's Laws of Attraction research underscores these preferences, highlighting the importance of purpose, respect, and continuity in employment.
5 Retention Strategies Labour Hire Agencies Can Implement Today
✅1. Start Redeployment Conversations Early
Don’t wait until the end of an assignment to discuss what’s next. Proactively initiating redeployment conversations during onboarding, or even during the first week, can dramatically change how workers perceive your agency. When a casual or temp worker knows you’re already thinking about their future, it signals long-term intent and builds trust.
This doesn’t need to be a formal process. A quick mention, “We’ll be looking for your next role before this wraps up,” can lay the groundwork. Then, use your recruitment CRM or recruitment software to track end dates and trigger reminders for recruiters to follow up.
By normalising the expectation of continuity, you’re not just filling roles, you’re building careers. And when workers feel that sense of trajectory, they’re far more likely to stick with your agency over the competition.
✅ 2. Use Check-ins to Strengthen Relationships
Mid-assignment check-ins are one of the most underutilised retention tools in labour hire. A short call, text, or automated survey asking “How’s it going on-site?” shows workers they’re not forgotten once the contract starts. It also allows recruiters to catch small issues, like a toxic supervisor or unsafe conditions, before they snowball into resignations or no-shows.
Regular check-ins foster stronger relationships between your agency and your workers. They increase the likelihood that workers will report problems instead of silently disengaging. And in industries like aged care or construction, where burnout and site friction are common, this can be the difference between completing an assignment and walking off mid-shift.
With automation, these touchpoints can be scheduled at key milestones (e.g. 3 days in, halfway through, and a week before the assignment ends), freeing recruiters to act only when follow-up is required.
✅ 3. Build a Loyalty Program (Beyond Pay)
Pay is only part of the equation. Smart agencies recognise and reward loyalty through programs beyond the payslip. These might include:
- Bonuses for reaching X number of completed shifts or months on assignment
- Points-based rewards for punctuality, upskilling, or referrals
- Priority access to upcoming roles for high-performing temps
- Public recognition through “Worker of the Month” spotlights or gift cards
Such programs create a sense of belonging and appreciation for casuals who may not otherwise feel “seen.” They also help reinforce the behaviours and outcomes you want to encourage, like repeat assignments, training completion, or positive client feedback.
The goal is to make workers feel like part of a team, not just transactional labour.
✅ 4. Ask for Feedback and Act On It
Feedback shouldn’t just be for full-time staff. Temporary workers often face unique challenges on the job, ranging from clunky onboarding to feeling excluded at client sites. If you’re not capturing their experiences post-assignment, you’re missing a goldmine of retention insight.
A short survey sent immediately after an assignment ends can help surface:
- On-site issues that need escalating
- Gaps in your internal process (e.g. pay accuracy, communication delays)
- General satisfaction and intent to return
But here’s the catch: collecting feedback without acting on it erodes trust. If a worker tells you they didn’t feel safe or supported- and nothing changes- they’re unlikely to return.
When you respond (even just with a “Thanks, we’re working on that”), you show accountability and care. Over time, you’ll build a reputation as an agency that listens, and that’s a powerful currency in today’s talent market.
✅ 5. Treat Exit as the Start of the Next Relationship
Just because a worker finishes an assignment doesn’t mean they’re gone for good. In fact, some of your best placements are often past temps who are open to returning if you stay top-of-mind.
Use your CRM or SMS marketing tools to keep ex-workers in your orbit. Schedule regular “talent pool” updates, send targeted job alerts based on previous experience, or check in during seasonal demand spikes (e.g. Christmas for retail, flu season for aged care).
You can even run reactivation campaigns: “We’ve got work for you. Ready to jump back in?”
Re-engaging former temps is typically faster and cheaper than sourcing new ones. They already know your process, your expectations, and the clients. By staying in touch and making return-to-work frictionless, you’re turning your database into a high-performing redeployment engine.
Quick Wins with Recruitment Tech
Retention doesn’t have to mean more manual work. With the right software and recruitment automation tools, you can build a high-touch candidate experience at scale, without burning out your recruiters.
Here’s how tech can deliver immediate retention wins:
💬 Automated Check-ins
Consistency is key when it comes to casual and temp worker engagement. But with dozens (or hundreds) of active workers at any one time, it’s nearly impossible for recruiters to check in with everyone manually.
That’s where automation shines.
Modern recruitment CRMs and recruitment automation tools allow you to schedule check-ins via SMS, email, or app notifications at key milestones in the worker journey:
- First day on assignment
- Midway through
- One week before the assignment ends
- Post-placement follow-up
These touchpoints build trust and allow workers to raise issues before they churn. Best of all, your recruiters only need to step in when someone flags a concern, freeing them up to focus on high-value conversations.
🎯 Worker Loyalty Milestone Triggers
Retention isn’t just about solving problems, it’s about recognising good behaviour. Tech can help you automatically reward workers who:
- Complete a set number of shifts
- Earn consistently good feedback
- Refer a friend who stays on the job
- Finish a safety or training course
With milestone triggers built into your system, you can send rewards, thank-you messages, or bonus eligibility alerts without lifting a finger. This proactive recognition helps casual workers feel seen and appreciated, even if they’re spread across multiple sites and clients.
🧠 Skills Tagging for Redeployment
One of the most powerful uses of technology in labour hire is building intelligent talent pools.
You can quickly redeploy them into the right roles by tagging workers in your CRM with specific skills, tickets, certifications, location preferences, and client history. There is no need to search through spreadsheets or memory—just filter and shortlist.
Better redeployment = less sourcing = stronger retention.
Advanced platforms recommend candidates automatically when a new job is created based on skills match and availability. This reduces time to fill and ensures your best workers keep getting placed.
📊 Worker Feedback Collection Tools
Every assignment is a chance to learn. With built-in feedback tools, you can send short post-assignment surveys to temp workers and clients. Collect data on:
- Site conditions
- Supervisor treatment
- Pay and shift accuracy
- Overall satisfaction
Bonus: you can use positive feedback in testimonials or worker spotlights, boosting your recruitment brand and internal morale.
Loyalty is a Business Strategy
Focusing on temp worker retention and casual worker loyalty is not just beneficial, it's essential for sustaining a competitive edge in the labour hire industry. By implementing the abovementioned strategies, agencies can reduce turnover, lower hiring costs, and build a more resilient workforce.