{"id":10017,"date":"2020-10-01T00:00:00","date_gmt":"2020-10-01T00:00:00","guid":{"rendered":"https:\/\/procomservices.com\/what-is-direct-sourcing\/"},"modified":"2025-11-19T18:21:54","modified_gmt":"2025-11-19T18:21:54","slug":"what-is-direct-sourcing","status":"publish","type":"post","link":"https:\/\/procomservices.com\/en-us\/insights\/what-is-direct-sourcing\/","title":{"rendered":"What is Direct Sourcing?"},"content":{"rendered":"\n

Direct sourcing happens when an organization recruits its own workforce directly rather than engaging the services of a third party vendor like a Managed Services Provider (MSP) or a staffing agency. Direct sourcing allows the organization to establish its own talent pool and control its employer brand.<\/p>\n\n\n\n

It\u2019s a new work world in an uncertain labor market, yet hiring is happening, and businesses are moving forward. Many, however, are also planning on moving away<\/a> from traditional employment models. As employers attempt to drive business forward by leveraging more flexible workforce models, it\u2019s critical that recruitment professionals are aware of the sourcing strategies used for these types of non-traditional worker engagements.<\/p>\n\n\n\n

Moving away from the traditional workforce model<\/h3>\n\n\n\n

A popular sourcing strategy for many organizations is launching a Direct Sourcing program in combination with, or instead of, engaging third party staffing vendors for the acquisition of skilled workers and contingent workers. (Because a Direct Sourcing program has many benefits<\/a>).<\/p>\n\n\n\n

If your organization is exploring ways in which to augment your current workforce with a more nimble approach to employment, the information below will help your organization make an informed decision as to whether a Direct Sourcing Program is right for you \u2013 and how you can get started.<\/p>\n\n\n\n

What is Direct Sourcing or Direct Sourcing Recruitment?<\/h2>\n\n\n\n

Direct sourcing occurs when an organization identifies candidates for a position using their own resources, choosing to perform recruiting and onboarding functions internally. During the talent acquisition process, Direct Sourcing is a recruitment strategy that ensures direct communication with candidates, allowing recruiters to build relationships with top talent over time.<\/p>\n\n\n\n

A Direct Sourcing strategy, however, isn\u2019t always the best approach for every business model when sourcing talent. <\/p>\n\n\n\n

Is Direct sourcing right for you?<\/a> Below is an actionable approach to identifying whether or not direct sourcing is right for your organization and how to start designing a program that works for you.<\/p>\n\n\n\n

Is your organization prepared for direct sourcing?<\/strong><\/h2>\n\n\n\n

Depending on your organization\u2019s needs and current hiring structures, it\u2019s important to recognize that direct sourcing isn\u2019t always the best option in every situation. First, it\u2019s critical to assess whether your organization is prepared for a direct sourcing program. Here\u2019s how you can identify whether you\u2019re ready:<\/p>\n\n\n\n

\u2022 Your organization already has forecasting and workforce planning in place.<\/p>\n\n\n\n

\u2022 You\u2019re planning to recruit large numbers of contingent workers with similar skill sets.<\/p>\n\n\n\n

\u2022 You require cost-effective supplier efficiency.<\/p>\n\n\n\n

\u2022 You\u2019re looking to control and capitalize on your employer brand.<\/p>\n\n\n\n

\u2022 You suspect you\u2019re spending too much on recruitment costs and require visibility into where dollars are being spent.<\/p>\n\n\n\n

How can your organization benefit from Direct Sourcing?<\/strong><\/h3>\n\n\n\n

A well-designed Direct Sourcing program can provide many cost savings benefits, but the opposite can also prove true if employers don\u2019t have the proper resources in place or a formal program to manage the process. Below are the main benefits of a program:<\/p>\n\n\n\n

\u2022 Control over employer branding
\u2022 Reduced costs and time to hire
\u2022 Decrease in risk
\u2022 Increased efficiency
\u2022 Higher retention rates and worker loyalty
\u2022 Increased ability to engage niche talent
\u2022 Flexibility to hire on a project-by-project basis<\/p>\n\n\n\n

Once you\u2019re ready to move forward with direct sourcing, here\u2019s how to launch an effective program:<\/strong><\/h3>\n\n\n\n

Before it\u2019s time to source and screen candidates, it\u2019s important to take into consideration what steps are involved in launching an effective Direct Sourcing program.<\/p>\n\n\n\n

Step 1.<\/strong><\/h4>\n\n\n\n

Set organizational goals (and resourcing)<\/strong><\/h3>\n\n\n\n

Great contingent workforce or blended workforce programs start with a set of clear and achievable goals, supported by a resourcing plan that provides all of the people and technology required to achieve success. When setting program goals within your Direct Sourcing strategy, an organization should pick two or three of the ones below as the principal focus of their program. <\/p>\n\n\n\n

Which goals are most important to you?<\/strong><\/p>\n\n\n\n

\u2022 Better access to talent
\u2022 Save money
\u2022 Increase transparency & control
\u2022 Improve contractor experience
\u2022 Independence from vendors
\u2022 Maintain control of employer brand
\u2022 Manage risk <\/p>\n\n\n\n

Step 2.<\/h4>\n\n\n\n

Experience Design: The source of participation<\/h3>\n\n\n\n

Building a community of engaged contractors and future employees during talent acquisition isn\u2019t easy \u2013 it requires very intentional thinking from the talent\u2019s perspective about the experience and benefits of participation. Poor experience design and inconsistent participation incentives will mean your program is unlikely to resonate with contractors, and those that do join, will tend to fall off quickly.<\/p>\n\n\n\n

Employers can off-set this by leveraging a process based on experience design. This includes analyzing your organization\u2019s current needs and environment, followed by development of participant personas and crafting relevant value propositions at each phase of the relationship lifecycle. <\/p>\n\n\n\n

Step 3.<\/h4>\n\n\n\n

Fundamental Program architecture<\/h3>\n\n\n\n

In tandem with the experience design process, every program needs to define its fundamental structure and policy decisions that will govern day to day operations. We define this as the people, process, policy and technology elements of your direct sourcing program.  Identifying and addressing these components is fundamental to its success, however; many organizations approach these decisions in an ad-hoc way, as opposed to part of a larger design and outcome driven initiative.<\/p>\n\n\n\n

Step 4<\/h4>\n\n\n\n

A successful program will take into consideration these five major decisions:<\/h3>\n\n\n\n

1. Payroll management model
2. Sourcing format
3. Rate management card
4. Onboarding requirements
5. Governance\/KPIs<\/p>\n\n\n\n

Once your organization has taken the time to complete the necessary workforce planning, you may have decided direct sourcing isn\u2019t the best strategy for this time. However, insights gleaned from your research can still help improve your current program, so it\u2019s important to reconnect with your MSP to review their objectives and metrics of success and how they align with your organization\u2019s current and future goals.<\/p>\n\n\n\n

Are you interested in gaining deeper insights into Direct Sourcing? <\/p>\n\n\n\n

Watch Procom\u2019s Direct Sourcing webinar and listen in as our experts discuss:<\/p>\n\n\n\n

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  • What is Direct Sourcing?<\/li>\n\n\n\n
  • Why organizations are using Direct Sourcing to acquire contingent talent. \u2013 What you need to consider when planning and launching a Direct Sourcing program.<\/li>\n<\/ul>\n\n\n\n