Vertical: Financial Services | Type: Workforce Management
Organizations that engage independent professionals as part of their workforce are increasingly doing so via direct sourcing. By identifying candidates for available opportunities using internal resources rather than relying on a third-party intermediary, enterprises can avoid costly markups and get talent to work faster.
As great as a direct sourcing solution sounds, however, it is just part of the picture. In order for a direct sourcing strategy to be successful, it must be supported and backed by technology that enables companies to find, engage, and re-engage talent. Furthermore, organizations must also be careful that whatever solution they choose to use includes full vetting of independent contractors in order to remain compliant.
Creating a Compliant Direct Sourcing Strategy
In order for enterprises to remain compliant, all workers must be properly classified. For example, if a worker is engaged as an independent contractor but that person does not actually meet the legal requirements to work independently, the organization can be held liable. When pursuing a direct sourcing strategy, compliance quickly becomes an important part of the conversation.
Policies and engagement options should be evaluated to make sure compliance requirements are met at each point in the lifecycle of sourcing, engaging, managing, and paying independent workers. A properly implemented direct sourcing strategy will ensure that independent talent are properly vetted and engaged, helping organizations reduce the risk of compliance violations.
4 Ways a Mid-Size American Bank Implemented Direct Sourcing and Compliance
A mid-size American bank with locations across the US needed a way to avoid costly markups and lengthy fill times from staffing firms and third-party suppliers. In addition, they also wanted to develop a more robust compliance program for their independent workforce population. They decided to partner with MBO to implement a technology-drive direct sourcing system and compliance program for contingent talent.
Here are 4 ways this bank optimized their workforce using direct sourcing:
- Established a baseline compliance program
- Created a dynamic, audit-ready compliance rubric aligned to the changing regulatory climate
- Deployed a talent marketplace to manage top-tier consultants
- Developed a system to quickly and easily redeploy known talent
View the case study to learn more about how the company reduced compliance risk, filled open roles through directly-sourced talent, and are projected to save $13.2M.
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The information provided in the MBO Blog does not constitute legal, tax or financial advice. It does not take into account your particular circumstances, objectives, legal and financial situation or needs. Before acting on any information in the MBO Blog you should consider the appropriateness of the information for your situation in consultation with a professional advisor of your choosing.