Top Five Benefits of Direct Sourcing for Contingent Workforce

Direct sourcing is the process by which an organization develops and leverages its own candidate pool to engage contract workers instead of relying solely on staffing providers. When the solution is created and managed solely using the organization’s internal resources, it is sometimes referred to as “self-sourcing”.  Alternatively, talent consultants may be engaged directly or through a Managed Services Program to establish a direct sourcing solution. In either case, the organization 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. 

1. Direct Sourcing Extends Your Reach to Top Talent – Direct Sourcing delivers a dependable pipeline of pre-vetted, skilled, motivated and proven workers which can be easily queried, engaged and re-engaged. This convenience supports the next benefit of Direct Sourcing. 
2. Direct Sourcing Decreases Fill Times and Increases Efficiency – Needed 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. 
3. 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 to source and engage talent, usually at rates significantly lower than those charged by staffing agencies. 
4. 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 screening, 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.   
5. 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 conditions, 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 talent. 

These benefits and more are derived via a well-devised direct sourcing strategy. Yet, to devise and deploy an effective solution requires experience and deep knowledge of sourcing methods and contingent workforce nuances. Need some expert guidance in devising a direct sourcing strategy for your workforce management operation? Ask nextSource for help today.