The strategy known as “direct sourcing” has become synonymous with the continued evolution of talent. Businesses that desire true organizational and workforce agility are actively harnessing the power of talent pools (and injecting those candidates into enterprise recruitment streams) as a viable means of reducing talent acquisition costs, ensuring top-tier skillsets and expertise, and structuring a truly dynamic workforce. Today, we continue the discussion around this critical, talent-led strategy (check out last week’s article for additional insights).
This month, Ardent Partners will unveil its highly-anticipated Direct Sourcing Toolkit research study, a progressive guidebook designed for organizations that want to understand the elements of direct sourcing, how to overcome barriers to implementing a direct sourcing initiative, the proper tools and technologies for supporting such a program, and an effective “blueprint” that can be leveraged by businesses of all sizes (and verticals). From the new research study:
There are many reasons why direct sourcing is going to accelerate its growth and overall impact, but the superior alignment between an organization’s needs and the available, top-tier talent to address them sits at the top of the list. We are living in a talent-led economy that promotes skillsets and expertise above all else; however, the worldwide pandemic has caused procurement, HR, and talent acquisition leaders to refocus on more traditional metrics that can drive short-term value in conjunction with the talent quality boost. This has deepened the overall value of direct sourcing strategies.
I once again spoke with various contingent workforce, staffing, and HR technology leaders and gathered their insights into the current and future impact of direct sourcing:
Phil Cooper, Vice President, Global Client Strategy, TalentNet
“To have direct access to talent that knows your brand and is interested to work for your organization will be critical in getting ahead of the talent shortage which will once again be upon us.
Quality predictors of talent occur when you know the specific output of your hires. Redeployment of great resources enables this and having the ability to engage these resources directly will guarantee this and also save you time and money.”
Tim Proehm, Vice President of Digital Product Development, KellyOCG
“Direct sourcing allows organizations to use their employer brand to attract contingent talent reducing their dependency on external agencies. In today’s large talent market, contingent workers can choose their employers and they want to understand what benefits – in addition to pay – they can expect from the collaboration. In the past, many corporations viewed these workers as “a commodity.” That mindset is outdated. Every organization needs to develop strategies that allow them to attract this highly qualified talent directly – and that´s the sweet spot of direct sourcing.”
Catherine Candland, CEO, nextSource
“As a result of the pandemic, we are seeing a rapid increase in demand for direct sourcing and talent pools. Clients forced to furlough talented employees are seeking ways to stay in touch. Companies seek to take advantage of the “remote work” phenomenon, expanding their search for talent beyond traditional geographic limitations. And all of our clients are seeking ways to retain workers at reduced rates while not compromising on talent quality. With that, clients are also exploring alternative pricing schemes that generate greater transparency and increased ROI.”
Bradley Pierson, Managing Director, Americas, Hays Talent Solutions
“Despite record unemployment globally, there still remains a highly-competitive market for certain workers and skillsets. For example, the industry transformations COVID-19 has driven has bought sharply into focus the fact that digital skills, such as those in cyber security, are not just “nice to have” but essential for business continuity and new growth. For those considering a new approach to their contingent workforce management, the pandemic has further strengthened the business case for improving access to a flexible workforce, and as organizations rebound and skills requirements change, direct sourcing is the fastest, most cost-effective means of engaging talent.
Often times people focus on technology when thinking of direct sourcing and miss the point that it is a service first and foremost, which is enabled by technology. As the role of the external workforce becomes paramount, those who fail to drive the recruiting and engagement strategies too won’t realize the true benefits, efficiencies, and cost benefits.”
Fang Chang, VP of Product Management, Coupa Software
“Key to successful direct sourcing from external workforce talent communities is the end-to-end lifecycle. Sourcing of talent is simply the start of the relationship. Companies seeking to form long-term relationships with top talent will need to deliver a synergistic experience of all touch points from initial onboarding and risk assessments to instant, digital payments.”
Chris Benson, Head of Contingent Workforce Operations, AlexanderMann Solutions
“Organizations that want to be competitive in the talent market must shift away from sole reliance on vendor neutrality and should be betting on their brand, not their supplier list. Contractor engagement must align with newly heightened expectations as candidate and consumer experiences converge at an accelerated pace.
Often times people focus on technology when thinking of direct sourcing and miss the point that it is a service first and foremost, which is enabled by technology. As the role of the external workforce becomes paramount, those who fail to drive the recruiting and engagement strategies too won’t realize the true benefits, efficiencies, and cost benefits.”
Bernard Caputo, President of Workforce Solutions, Atrium
“Direct sourcing will amplify employer brands hungry for contract talent, while the recruitment vendor will become an extension of traditional talent acquisition teams leveraging the benefits of utilizing company name on job postings, referrals from company career website, and access to the company’s ATS — all for the purpose of pipelining contract workers. Combine these advantages with an enterprise opportunity for the direct sourcing curation vendor, the volume drives pricing down, increases speed to fill and quality of matches due to AI, while the proactive curation of candidates within job categories will be nurtured by recruitment marketing, drip brand content, and job alerts to stay in touch with candidates. Additionally, direct sourcing can serve as the conduit between a company’s temporary workforce and an overall inclusive workforce.”
Marlon Rosenzweig, CEO and Co-Founder, WorkGenius
“When speed is of the essence, you don’t ask the concierge to order the taxi, but you hail one directly on the street. Less back-and-forth, and you probably save some money, as well.”
RELATED RESEARCH
The Impact of Direct Sourcing in 2020 (and Beyond), Part I
The Value of Total Talent Intelligence
Why 2020 is a Catalyst for Transformation in the World of Talent and Work
Why Direct Sourcing is Your Key to Better Talent…Even Today
