The Complexities of Employee Retention when Three Parties are Involved

by Kaikai Jing, Longjiao Li, Fanni Vigh, & Corine Boon

Employee retention is a top priority for Operations, HR and Project leaders, and for good reason. Turnover is costly, with Gartner estimating an average expense of $18,591 per employee, potentially reaching up to $1.7 billion for larger companies. Beyond financial losses, turnover drains vital organizational knowledge and skills, especially among contract workers, where frequent departures drive up costs through ongoing onboarding and retraining.

The unique retention dynamics

While employee retention is a complex issue to tackle for any organisation, it is even more complex for solution providers of workforce and projects due to the unique structure of their employment relationships. For traditional employment, the connection is straightforward between an employer and employee. However, solution providers introduce a third party into the equation—the Solution Provider itself. This creates a triangular relationship involving three distinct entities: the solution provider, the client company, and the specialist.

• Solution Provider: The solutions provider specialises in the flexible placement of specialists within companies and projects, managing not only recruiting, hiring and payrolling but also offers comprehensive project and consulting solutions, workforce solutions and global mobility services. Their role extends far beyond traditional staffing, providing end-to-end workforce management and support.

• Client company: The client company is where the specialists perform their duties. They rely on the solution provider to supply skilled labor for specific projects or temporary roles, overseeing the worker's day-to-day activities without directly employing them.
• Specialist: The specialist is an individual placed by the solution provider at the client company, often for temporary or project-based assignments.

Having three parties involved also means that there are different types of retention:

1. Retention of specialists with the client company: This retention ensures continuity, reduces turnover costs, and fosters a positive work environment, benefiting both the client company and the solution provider.
2. Retention of specialists with the client company’s parent account: The parent account represents a large organisation with different branches or divisions, where a Specialist might stay with the organisation but not with the specific branch or division. This not only opens more opportunities for the specialist but also ensures the client company retains valuable talent across the entire organization, while the solution provider strengthens its long-term partnership by delivering adaptable solutions
3. Retention of specialists with the solution provider: This retention ensures that specialists are likely to stay for multiple assignments and is key to maintaining a stable, loyal, and experienced talent pool for the solution provider.

Each retention type is important to examine because they have distinct characteristics and drivers, serving different purposes. For example, retention data with the client company and their parent account can provide valuable insights for clients to enhance project outcomes, while retention data with the solution provider is primarily useful for internal evaluation on processes and efficiency.

These three retention types are also interconnected. Poor retention in one area can create a ripple effect, causing dissatisfaction and turnover in other areas. However, if specialists have positive experiences with both the client company and the solution provider, they are more likely to stay engaged and loyal across multiple assignments. By gaining deeper insights into all three retention types, both solution providers and client companies can foster stronger, more sustainable relationships, benefiting everyone involved.

Insights from collaborative research

In a collaborative research project between APAC and Brunel International N.V., a global workforce and project solution provider, we examined three distinct types of retention by analysing a substantial dataset of specialists worldwide. We used data on demographics, placement details, contract specifics, and reasons for leaving (voluntary, involuntary, or completion of contract).

In the first phase of this research project, our goal was to discover the different types of retention and identifying their characteristics and drivers. We found that voluntary departures of specialists are the primary reason for leaving client companies, whereas involuntary exits are more common when leaving the Solution Provider. Also, voluntary departures, particularly during long placements of specialists, are the greatest challenge to retention efforts. Next, we found that the probability for retention with the solution provider varies per continent, business unit, business service, recruitment source, and education level.

A comparison between the top 5% most loyal specialists and the broader group revealed notable differences in geographical distribution and recruitment channels. These insights suggest that a more comprehensive analysis could further uncover patterns to inform targeted retention strategies.

Implications and next steps

Overall, the data showed that retention with the client company, with the client company’s parent account, and with the solution provider indeed have different characteristics and drivers. So, to maximise retention, it’s essential to develop customised strategies that address the unique factors driving each type of attrition. A one-size-fits-all approach won't work.

Our analysis shows that client companies should prioritise reducing voluntary turnover, particularly among specialists on long placements. Understanding the characteristics of the most loyal employees enables more targeted retention strategies. For instance, specific recruitment channels tend to attract more loyal workers, so emphasising those channels in recruitment efforts can boost retention.

The first phase of this project was mostly focused on mapping retention and some of its drivers. Moving forward, our research could dive deeper into reasons why specialists might leave, focus on analysing specific segments of specialists, such as high performers or those in critical roles, to provide practical insights that can reduce voluntary turnover and strengthen workforce stability across organisations.

About the authors

Kaikai Jing is a Manager of Market & Business Intelligence at Brunel International N.V., and a strategic partner to senior leadership, driving data-centric strategies that fuel growth. She excels at turning complex data into clear, actionable insights, empowering fast, informed decisions. Passionate about data, Kaikai focuses on aligning business strategies with organisational goals. For comments or questions, reach out to k.jing@brunel.net.

Longjiao Li is a PhD candidate at the Rotterdam School of Management, Erasmus University. Her research focuses on workplace team dynamics and the role of social networks in organisational processes. Reach out with comments and questions to l.li@rsm.nl.

Fanni Vigh is a Data Analyst within Brunel's Market & Business Intelligence Team. She specializes in advancing business insights by enhancing operational reporting systems with innovative, experimental analytics. Her work drives the development of actionable insights and strategies, shaping new sales narratives to support data-driven decision-making.

Corine Boon is Professor of HRM and People Analytics at the University of Amsterdam Business School and is the Director of the Amsterdam People Analytics Centre (APAC). Her work focuses on strategic HRM, people analytics, and how AI and the future of work impacts organizations and employees. If you want to learn more about our work, reach out to c.t.boon@uva.nl.