Switching to Direct Sourcing: the Workforce Shift

With continuous changes to the modern workforce, direct sourcing is becoming a foundational talent acquisition strategy that also helps to retain top talent for longer periods of time. Direct sourcing is a strategy that makes it easier to hire new talent through the use of a private talent community of capable contingent workers. It’s a productive way to find the right candidates for temporary contract roles without the need to use reactive, inbound applications or outdated applicant tracking databases. Companies can instead identify and connect with the talents that have a high level of interest and awareness of their employment brand because these candidates have already received meaningful communications from the company based on their career interest and a curated talent pool to form a connection with the company’s brand. Many believe direct sourcing is showing great value as an important aspect in the workforce management landscape of tomorrow. 

The power of direct sourcing is evident in how it helps prepare for the challenges many companies are coming to face. For one, talent shortages are one of the toughest challenges causing problems for companies today. If the problem is not addressed properly, more than $8 trillion will accumulate into unrealized revenue by 2030. Another issue direct sourcing can address is the rising cost of hiring new employees with new hire pay currently being almost 10% higher than usual. Cost-effective recruitment can help businesses suffering from this dilemma save a significant amount of money. 

Today’s labor market has required talent hiring to be faster and more accessible. Besides cost savings, direct sourcing can help companies find better-suited talent and candidates, quicken the hiring process, “humanize” the candidate experience, increase the diversity of the candidate pool, and build stronger relationships with candidates while improving their employer brand. Attracting and keeping top-quality candidates through direct sourcing efforts can lead to higher return on investment (ROI) as well. Direct sourcing can improve the population in certain labor categories where there are more needs, resulting in a higher conversion rate of temporary to permanent employees. 

Direct sourcing can be a really useful talent acquisition strategy that companies can use to become more competitive in today’s workforce. Being open to making a private talent community of qualified contingent workers and staying in contact with known populations who are invested in your company can help you find the right talent faster and at a more affordable cost.