To correspond with the evolving world, companies need to revisit and evaluate their talent acquisition strategies periodically. Companies depending on knowledge workers and thinkers retain vital team members by keeping up with the pace. And the ones who don’t, are counting backwards.
Direct sourcing, or self-sourcing, is the process of leveraging the company candidate pool to hire and engage temporary workers. The TA and HR team reach out to the current and former contractors, employees and freelancers instead of using a third-party recruitment agency and software. Companies at all levels worship documentation to its core and it’s times like this when they can tap into their data. Not only does it save a lot of time but also valuable resources. Organised can generate active talent communities in specific locations, job functions and roles. Additionally, with the help of Artificial Intelligence (AI), Direct sources improved pipelining.
Improved Candidate Quality
Direct sourcing gives organisations complete control over the type of candidates who qualify for the interview. The organisation’s in-house hiring managers manage and address the queries from the candidates before and after the interview. Statistically, over 90% of professionals around the globe are open to hearing about new job opportunities. Organisations can draw benefits from this trend weighting in their favour.
A third-party recruitment firm limits the understanding of both the role and the company. With the data shared by the organisation acting as their source, their knowledge is limited to the highlights of the job role. When inquired by the candidate, their response is rather restraining and unpromising. Organisations can forge deeper relationships with candidates. Not only would this process help in getting a valuable candidate on board, but it will also contribute to their existing pipeline.
Faster Hiring Cycles
The pre-screen pool enables the possibility of a faster hiring cycle. When assessing the pool of specialised talents, the HR team can seek strategic advantages of quality control, low competition and existing networks. Each candidate in the pool is already interested in working with them. Direct sourcing also enables companies to increase their loyalty and strengthen these networks.
Keeping the right talent in mind, future position openings can be filled faster without complications and uncertainties. The contracts and connections can prove to be a vital part of the business model. However, there are a few legal and compliance issues related to re-engaging with top talents. Organisations cannot make direct contact with talents sourced by an external agency. Direct hiring empowers organisations and frees them from all such bounds.
Background on Talent Scarcity
Talent scarcity is exponentially revolting. Skilled and knowledgeable workers are highly in demand. On the other hand, the quantity available in the job market is simply not satisfying. More and more workers are leveraging the control and flexibility driven by an independent workforce. In times like this, even the training system cannot produce enough to match the qualities needed. Having a pool of candidates available at your disposal is a treasure. Organisations can utilise their sources in attracting and retaining candidates already inclined towards them. To support the need for independence and flexibility, organisations are also breaking barriers by promoting recruitment to overcome their hiring challenges.
Cost Saving
As a positive outcome of direct sourcing, companies can save their funds and resources. The cost involved in consulting a third-party recruitment agency, markup and so on grows with the scale of the firm. Whereas, companies could use online marketplaces to acquire talent with the same flexibility. However, they must invest in a strong HR department. By giving the team the resources and flexibility to self-select and analyse the right candidates, organisations can build trust among the department. With good recruitment strategies, they can save up to 10% on recruitment costs.
The number of contingent workers brought in by third-party agencies is remarkable. But when you look at it, third-party recruitment agencies are an eliminable intermediary. On the plus side, you can always get an external agency on board when requirements are not met in-house. The free-up resources can be utilised for the betterment of the channel, or on the existing employees.
Contingent Labour
Along with the workers, companies too are seeking flexibility. Regardless of the size and location of the company, labour is one of the largest and most indispensable spending categories. Contingent labour not only harmonises with that flexibility but is also significant access to specialised skills. Instead of hiring a single high-paid full-time employee whose assistance isn’t consistently required, companies can break down their roles and outsource tasks to contingent labour. These include consulting firms, freelancers, independent contractors, online staffing and more. In fact, it is a highly growing narrative in the job market.
However, the process lacks centralisation under the current practices to draw a positive financial impact. With a tailored strategy, organisations can ensure a flow of more consistent and quality recruits.
Positive Cultural Impact
Developing long-term relationships with the candidate pool has an underrated impact on company culture. With culture comes recognition and that leads to loyalty. Direct sourcing can build the company’s name in the job market. This not only improves the external image of the brand but also correlates with the internal team. As a result, employees grow more invested and deliver optimum performance.
Conclusion
Direct sourcing strategies enable strategic approaches for market trends and shifts. With their traditional staffing solutions coupled with transformed hiring techniques, organisations can meet the demand of 2024. When the opportunity arises, they can grasp them well before their competitors. And with that, they are ready to reap benefits.
