Talent has long been an organization’s greatest asset; however, many businesses have only recently come to appreciate the real value of their workers. In light of ongoing talent shortages, more than a few companies have found themselves with bad hires and the consequences that come with them. Loss of productivity is just the first. Loss of time, loss of money, and a negative impact on morale are all harsh realities of misjudging the talent brought into the organization.

Making the right hiring decision from the very beginning is key to success, even more so when it comes to contractors. An increasing number of companies rely on contingent workers due, in no small part, to their specialized talent, quality of work, and fresh perspective. Plus, having a roster of go-to workers with the right skills can provide a competitive advantage. The problem that arises, however, is whether you’re taking the right approach to sourcing talent.

It’s for this reason, among many others, that direct sourcing contingent labor should top the list of approaches for your talent acquisition efforts.

What Is Direct Sourcing Exactly?

While many HR professionals can already answer the question, “What is direct sourcing?” it still pays to arrive at a definitive definition. It’s the practice of leveraging a company’s employer brand to fill a candidate pool, often with known talent (such as alumni, referrals, retirees, etc.), to fill various types of roles within the organization, including contingent roles. Managed service providers (known as MSPs) or other third-party solution providers are sometimes used for various elements of a direct sourcing solution, but most of the sourcing process will be kept within the four walls of an organization—and that’s largely due to the benefits of direct sourcing when it involves contingent workforce hiring.

For one, direct sourcing contingent labor adds a multichannel approach to talent sourcing, cutting down on recruitment costs. Engaging with known candidates also reduces the time it takes to hire and onboard. They’re generally familiar with the organization, so training takes very little time. Then, there’s the simple fact that previously engaged candidates bring already-tested skills to the role, which can improve the quality of hire. You wouldn’t bring them back if they couldn’t deliver.

When Things Don’t Always Go as Planned with Direct Sourcing

Though there are many benefits of direct sourcing, companies have been known to run into a few challenges along the way. Part of this is owing to their approach to direct sourcing contingent labor. A company that is not leveraging its brand as a part of its direct sourcing strategy is missing out on a key advantage. Without tying the company’s brand to the job opportunity, candidates may be unclear about who exactly they will be working for. And current direct sourcing processes can involve multiple companies—for example, a candidate might be sourced by Company A to work for Company B but then be legally hired and receive pay from Company C.

Without alignment between all companies involved in the process, this can lead to a disjointed candidate experience and potentially a complex, unpredictable, and lengthy hiring process. The last thing any company needs is for top talent—temporary, permanent, or otherwise—to drop away before a job offer can be made.

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