I heard from a contractor (Solution Architect) last week that after 12 months with a large Telecoms operator he was leaving as he could not get his contract extension organised in time. He had given them plenty of warning but within the last 7 days of his contract he was approached by another agency about a contract role and decided to take it.
He was worried his existing contract might not get extended in time; was frustrated by the delay and he needed security as he had his own bills to pay. The manager at the current company was bemused by why he wouldn’t be staying but if someone had managed to sort it out even a few weeks before, the outcome would have been different.
There are usually a few reasons why contracts aren’t extended until the last moment and it’s usually due to pressure on the managers to submit a business case for the extension and then subsequently have to chase approval. If that gets delayed (given the other tasks a manager has to do) then it can have a knock on effect to the extension. For the “in demand” contractor (who will never be out of work) they will have multiple options generally and recruiters might be tempting them away from their current contract either for money; interesting project; location or better security (perhaps a 12 month contract instead of 3 months rolling for example).
A good agency or onsite contingent work force team should ensure that an extension is discussed 6-8 weeks before the end of the contract prompting the line manager or procurement into action to ensure the contract paperwork is in place way before the end of the contract to avoid last minute problems. There’s nothing worse than losing a great contractor who has built up tacit knowledge of the business just because somewhere along the line the paperwork has not been done in time.
Source: Vine 16