3 Ways to Make Direct Sourcing Part of Your Workforce Management Strategy

By MBO Partners | June 16, 2022

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Direct sourcing is a way to connect directly with independent contractors. Rather than using an expensive third party like a staffing or consulting firm to find talent, companies can source talent internally using their own resources.

If your organization is looking to incorporate a direct sourcing strategy to engage independent talent, here are three steps to take.

1. Choose the Right Direct Sourcing Strategy for Your Business

The first thing to understand about direct sourcing is that a solution will differ depending on the organization it is being designed for. The size of your company, your industry, your talent needs, and your budget are all factors that must be taken into consideration.

For example, one company might rely on a program that HR or procurement runs while another might use an existing vendor to perform a specific service in the process of engaging independent talent.

No matter what path your company chooses it is important to learn the potential benefits of direct sourcing in order to build a successful strategy. On the side of independent contractors, direct sourcing—coupled with technology—allows them to more quickly and easily search for and match with project opportunities that fit their particular skill set.

For organizations, managers can discover and engage the talent they are looking for to bring the skills they need to a project. Direct sourcing can also offer many opportunities for cost savings through staffing flexibility, third-party markups, and independent contractor engagement.

Learn more: 3 Cost Savings of Direct Sourcing

2. Educate Company Leaders About Direct Sourcing

When implementing a direct sourcing strategy or program, it is helpful to gain internal support. When company leaders understand the benefits of direct sourcing and support implementation, it is more likely to be successful and adopted by employees.

When obtaining internal buy-in, educate both business stakeholders and employee managers about what to expect. Talk to managers about how a direct sourcing program will help them reduce the amount of time they spend reviewing candidates, and give them access to skilled talent on-demand. Get company leaders involved in the conversation from the start; talk to them about the potential ROI of a direct sourcing strategy and how incorporating more independent talent into their workforce can help them achieve business goals and remain agile.

Learn more: 4 Tips to Get Buy-In for Your Contingent Labor Program

3. Use Direct Sourcing Technology

A part in transitioning to direct sourcing is technology. Technology is a big help in the direct sourcing process and can be used for tasks like automating onboarding, eliminating time-consuming paperwork, and recording worker classification information. Streamlining these types of tasks creates a more positive experience for independents and managers alike.

Technology like online marketplaces can also play a big role in helping managers find the independent talent they want. Marketplaces connect independent contractors with available projects, allowing managers to search for and select the person they want to engage. Talent can also search for and apply to projects on their end.

There’s a lot of emerging direct sourcing technology to sift through, and it is important to take the time to make sure you choose the right tools for your needs. Companies like MBO who specialize in independent contractor engagement and compliance can help your organization put the right strategies in place to directly source high-end independent talent.

Learn more: Access top talent on demand

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