Sometimes referred to as “self-sourcing” in the staffing industry, direct sourcing is the process by which a company develops and leverages its own candidate pool to engage as contract workers instead of relying solely on staffing providers. The company typically then turns to Employer of Record, Agent of Record, or Managed Service Provider firms to administer the candidate’s credentials, onboarding, and payment. There are significant benefits to be derived from implementing a direct sourcing function within your operation. Here are the top five most significant of these benefits.

5) Direct Sourcing Yields Cost Savings
Cost savings are always among the top benefits of any successful strategy. Direct Sourcing is no exception. The flexibility Direct Sourcing enables in the talent acquisition process makes it easier for a hiring organization to bring recruitment functions in house. In house recruitment also makes compliance processes easier and more effective. All of which deliver increased savings.

4) Direct Sourcing Helps Organizations Develop Proprietary Talent Pools
Developing pools of talent that has already been engaged with your organization delivers a dependable pipeline of pre-vetted, skilled, and proven workers which can be easily queried and re-engaged. This convenience supports the next benefit of Direct Sourcing…

3) Direct Sourcing Decreases Fill Times and Increases Efficiency
Relying on the aforementioned private talent pools, independent talent can be engaged on an as-needed basis with relative ease and in very short order. This helps organizations attain better output, higher satisfaction and increased productivity.

2) Direct Sourcing Reduces Non-Compliance Risks
Direct sourcing often leverages talent with whom the organization has had a prior relationship. In those instances, the worker classification and other compliance requirements have already been met. Established relationships with EORs, AORs, and MSPs only increases the attention given to ensuring all regulatory and legal strictures are being observed.  

1) Direct Sourcing Makes Re-Engagement Quick and Easy
Especially in the time of pandemic when uncertain conditions require the ability to nimbly react to rapid changes in market environment and staffing levels, organizations that can scale quickly and easily can attain a competitive advantage over their competition. Direct sourcing makes it easy to quickly re-engage previously engaged independent talent.

These benefits and more are derived via a well-devised direct sourcing strategy. Yet, it is important to take the time necessary to devise and deploy an effective solution. Building and maintaining an internal pool of independent talent requires experienced guidance. The workforce management industry does appear to be shifting away from traditional hiring models and toward more flexible solutions such as direct sourcing of an increasingly independent workforce. Need some expert guidance in devising a direct sourcing strategy for your workforce management operation? Ask nextSource for help today.