Replacing a high performing contractor mid-project is one of the most avoidable risks in IT delivery.

With contractors having more choice and contract roles continuing to make up a significant share of the workforce (around 28% of IT roles, per SEEK), retention has become critical to project delivery.

Over the past 18–24 months, many organisations have relied heavily on short-term contracts to manage uncertainty. In today’s market, that approach is increasingly misaligned with delivery realities. Short, reactive engagements introduce avoidable risk- loss of knowledge, reduced momentum and disruption mid-project.

Practical steps we are seeing hiring managers take to address this include:

1. Offering longer initial contract terms
Align contracts to the true phase of delivery. Longer initial engagements reduce churn and improve productivity.

2. Communicating the project status early
Transparency around timelines, funding and direction supports continuity and retention.

3. Reviewing and confirming extensions earlier
High performing contractors often have options well before end dates. Early confirmation of contract extensions materially improves retention.

4. Treating contract roles as core to delivery
Teams that plan contract resourcing with intent rather than as a stop term solution experience stronger continuity and fewer resourcing gaps.

Organisations getting this right are seeing greater stability, stronger delivery outcomes and lower delivery risk, without increasing overall headcount.

If you’re reviewing contract structures or extension practices this year, we’re seeing what’s working across the market and would be happy to share insights. Please reach to Alana Hallett at ahallett@genesisit.com.au.