Exploring Direct Sourcing: Discover how to implement it

5 min | Robert Moffat | Article | General

A woman wearing a blue shirt and a ponytail looks into a tablet with a white building in the background.

Over 90% of companies are experiencing shortages in skilled workers. These gaps in expertise have emerged as a critical issue for businesses in most sectors. 

The process of hiring the right individuals, whether permanently or on a contingent basis, is proving to be time-consuming and expensive. This is especially noticeable in industries such as Engineering, Life Sciences or Banking and Finance industries, for example. 

So, what exactly is Direct Sourcing? And how can it address common challenges in the hiring process?

Direct Sourcing is a strategic approach to talent acquisition that assists companies in developing a strong pool of suitable candidates by actively enhancing their employer brand. This method is particularly beneficial for companies aiming to recruit large numbers of employees but can also be effective for niche roles in specific locations. 

Our success stories demonstrate the effectiveness of direct sourcing. Recently, we collaborated with a client on their direct sourcing strategy, resulting in a faster hiring process. As a result, they successfully onboarded over 1,000 new hires. This led to a 5% reduction in talent acquisition costs, and more importantly, a 25% decrease in time to productivity – the time taken not only to identify, select, and hire an employee but also the additional time required for that person to become fully productive in their role. 

In this article, we will explore what Direct Sourcing is and how it can benefit your business

What is Direct Sourcing in recruiting?

Direct Sourcing involves leveraging your company's reputation, utilizing new technologies, and implementing a marketing strategy focused on engagement to cultivate a network of skilled individuals aligned with your future needs. While direct sourcing is often integrated into a Managed Service Program (MSP), it can also be applied effectively in permanent hiring scenarios.

By leveraging your brand's appeal, direct sourcing positions you as a preferred choice for potential employees, eliminating the reliance on third-party suppliers. This strategy involves actively seeking and engaging with talent communities using your brand, processes, and technology to attract top talent. Essentially, you become a 'Destination of Choice' for candidates.

What are the benefits of direct sourcing?

The benefits that direct sourcing offers to companies that incorporate it into their hiring processes include: 

Streamlined Talent Acquisition

The speed at which you attract talent is crucial. Direct Sourcing offers a quicker, more streamlined access to talent. Direct Sourcing employs advanced demand forecasting to anticipate future skill needs, ensuring you remain ahead of the curve and ready to meet critical talent demands when they manifest. 

Direct Engagement with Top Talent

Direct Sourcing transforms how companies interact with candidates. It allows your organization to directly engage with talent instead of going through a cluster of third parties. By harnessing your brand's power, this approach ensures your recruitment teams are better equipped to showcase your job opportunities, leading to higher-quality matches and focused attention on your vacancies. 

Upholding Your Employer Brand

A strong employer brand is vital for attracting top talent. Direct Sourcing encompasses the entire recruitment process, from initial contact to onboarding, all conducted under your brand's umbrella. This consistency guarantees a consistently high-quality experience for both candidates and hiring managers, strengthening your brand's reputation. 

Cost-Effective Talent Sourcing

Implementing Direct Sourcing often results in significant cost savings compared to traditional staffing methods. This approach reduces immediate expenses and optimizes your long-term recruitment investment, providing a cost-effective solution for talent acquisition.

Determining the right time for Direct Sourcing

Choosing when to implement a Direct Sourcing strategy is crucial for revolutionizing your recruitment approach. It's important to note that this strategy isn't universally applicable. Instead, it excels in specific scenarios where it can have a significant impact on your talent acquisition and management efforts, such as: 

  • High-volume recruitment: Direct Sourcing is ideal for organizations frequently filling high-volume roles and aiming to expand their talent networks, particularly in sectors or regions with high demand for niche skills. 
  • Enhancing employer brand: Do you prioritize protecting and enhancing your employer brand during recruitment? By conducting all recruitment activities under your brand and adhering to your brand guidelines, you maintain control over the candidate experience. 
  • Efficiency and cost-effectiveness: Companies looking to reduce time-to-hire and achieve cost savings in recruitment could find Direct Sourcing a valuable workforce strategy compared to traditional methods. 

Considerations for Direct Sourcing

While Direct Sourcing offers advantages in certain contexts, there are also considerations to bear in mind. 

  • Unique role requirements: Traditional recruitment approaches may still excel in filling niche roles or those with specific challenges. 
  • Brand strength: Without a robust employer brand, attracting top talent might be more challenging initially. 
  • Long-term viability: Rushing implementation can lead to suboptimal results. We generally recommend a phased approach, starting with Direct Sourcing for the most suitable roles before scaling up. 
  • Process efficiency: A smooth onboarding process significantly enhances the effectiveness of Direct Sourcing – there's nothing worse than an excellent talent attraction strategy hampered by perceived bottlenecks in onboarding new hires!

Launching Your Direct Sourcing Program

Our Direct Sourcing approach is tailored for companies with a strong brand presence and significant talent demands. Leveraging innovative sourcing techniques, data analytics, and modern insights, we create dynamic talent networks rich in skilled professionals to tackle your challenges. 

With every aspect of sourcing, screening, and internal management aligned with your brand, we provide a seamless experience for your team and prospective hires. 

Learn more about our direct sourcing services today.

About this author

Robert Moffat
Global and Americas Head of Solutions, Enterprise Solutions at Hays

As Global and Americas Head of Solutions Robert is part of the global leadership team responsible for innovation and product development. Having lived and worked for Hays in Europe, Asia Pacific, and the Americas he has been instrumental in a number of Hays’ global projects including the roll out of a Global Operating Method, Supplier Engagement Strategy, the evolution of our direct sourcing approach and a quick deploy RPO service for start-up and high growth companies.

articleId- 69177426, groupId- 20151