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.

recruitment manager choosing which employee to hire illustration

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.

Latest articles 

Direct Sourcing facts

1. 40 percent of employers are finding it difficult to fill open positions. (Innovativeemployeesolutions)

2. How candidates are sourced, hired and onboarded depends on factors such as company size, HR budget, and the company’s unique talent needs. (Guidantglobal)

3. Direct sourcing can cut down transaction costs, reduce Time to Fill, and ensure you hire the exact worker you 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 firms use direct sourcing to find their own contingent workers. (Staffingindustry

6. Implementing direct sourcing negates the need of recruitment agencies, with potential savings of up to 30% in fees. (Harver)

8. Companies can save up to 50%  on contractor markups compared to typical staffing agency rates. (Talenttechlabs)

9. Direct sourcing and talent pool curation are the top 2 priorities for contractor workforce Procurement, HR, and Talent Acquisition leaders. (Livehire

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