Direct Sourcing
News and information on the impact of Direct Sourcing
What is Direct Sourcing?
Direct Sourcing describes the activity of harvesting the talent pool formed by their internal recruiting activities and brand reach to source gig workers. This talent pool might include individuals who’ve approached an organization through its social media presence, former employees, retirees or applications within the company’s own applicant tracking system.
Why use Direct Sourcing?
It’s in every company’s best interest to fully leverage talent within their reach. Social media platforms like LinkedIn and Facebook, have had unprecedented impact on the recruitment industry. With these platforms, millions of companies can promote their interest in good talent on their own pages. These platforms are ALWAYS ON.
The challenge to find highly skilled talent to suit workforce demands has become increasingly difficult:
2019 research from Korn Ferry Institute finds that the global talent shortage could reach over 85 million people, costing companies trillions of dollars in lost opportunity. The USA is predicted to be hit the hardest by talent deficit, which will cost the country $435.7 billion in lost revenue, or 1.5% of the whole US economy.
Direct Sourcing cuts agency fees by sourcing talent direct through job boards and social media.
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Please note: The insights provided in this section are commonly republished from third-party sources. Articles are the exclusive opinions of the authors. Simplify Workforce accepts no liability for their accuracy or for any consequential impacts of any actions resulting from the use of this information.
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10 facts about Direct Sourcing
1. 40 percent of employers are finding it difficult to fill open positions. (Innovativeemployeesolutions)
2. Direct sourcing is very much a one–size–fits–one, bespoke solution that varies from organisation to organisation. How candidates are sourced, hired and onboarded depends on factors such as company size, the HR budget, and the organisation’s unique talent needs. (Guidantglobal)
3. Direct sourcing can cut down transaction costs, shorten the time it takes to fill skill gaps and ensure that your company hires the exact worker it needs at any given time. (Hcmworks)
4. 56% of companies are shifting more of their roles to contingent work this year. (Randstadsourcelight)
5. 39% of large companies use direct sourcing to find their own contingent workers. Further 23% of companies plan to use direct sourcing in the near future. (Staffingindustry)
6. By implementing direct sourcing you are negating the need to use recruitment agencies, saving you a significant sum of money in fees (these can be up to 30%). (Harver)
7. 70% of businesses cited direct sourcing and talent pool curation as their top priorities for 2020. (Cporising)
8. Because direct sourcing is more efficient and scalable than multi–agency staffing, companies can save up to 50% on contractor markups compared to typical staffing agency rates. (Talenttechlabs)
9. Research by Ardent Partners has found direct sourcing and talent pool curation are the top 2 priorities for contractor workforce Procurement, HR, and Talent Acquisition leaders. (Livehire)
10. Less than 10% of the Fortune 1000 companies advertise contractor roles on their careers pages. (Livehire)