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5 Benefits of Implementing a Direct Sourcing Strategy

   |   MBO Partners   |   May 6, 2020

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Many organizations are turning away from traditional hiring models and towards new options to find and manage talent. This strategy takes the form of sourcing from today’s valuable talent pool of self-employed professionals. The idea behind these talent management solutions is to move recruiter functions in-house to enable enterprise managers to sift through a network of available talent to match skill sets with open positions.

The independent workforce is a rapidly growing population that can provide organizations with high-quality skills, greater staffing flexibility, and lower employment costs. Here are five ways direct sourcing tools can change how you manage and engage your independent talent.

1. Reduce the Time and Cost of Recruiting

Enterprise managers who are used to working with staffing firms or searching for talent on their own may be hard-pressed to recognize the value direct sourcing tools offer. But modern tools like marketplace platforms allow organizations to easily engage top independent contractors for consulting jobs with their company, making managers’ jobs much easier.

MBO’s platform, for example, uses a matching algorithm to pair qualified talent—already in your network and from the platform—with available opportunities, reducing the amount of time managers have to spend reviewing candidates.

While some direct sourcing tools such as marketplaces function by searching for candidates via keyword, MBO’s platform automatically pairs available projects with a talent network of pre-vetted, trusted independent professionals. This helps managers to minimize the amount of time spent on recruiting activities, increase visibility into the hiring process, and ensure compliant engagements.

2. Boost Worker Efficiency and Output

Posting and publishing opportunities using a marketplace not only enables your company to quickly and easily reach available talent, but it also helps to shorten the amount of time spent on back-office activities such as contract administration, compliance, and onboarding. That means independent talent can get to work both easier and faster.

By engaging independent talent on an as-needed basis, companies have the flexibly to pull in talent when and where they need it most. Nearly 64% of senior executives say their external workforce is important or very important in increasing organizational agility, according to research from Deloitte. Independent talent allow companies to remain competitive among their peers. Develop a new line of business or build out a new market using project-based work facilitated by independent talent rather than spending valuable time and resources to recruit a full-time employee for the same need.

 

3. Minimize the Risk of Worker Misclassification

Direct sourcing can further benefit your business by helping to reduce the risk of compliance violations through transparent, defined processes. For example, marketplace platforms that offer flexible engagement options allow independent talent to work in the way they want while ensuring companies remain compliant.

Another important part of proper worker classification is documentation. Onboarding processes should include secure collection and storage of documents that qualify each independent professional your company engages. Companies like MBO provide these services along with contract administration to ensure proper procurement, finance, and accounting procedures are met.

4. Increase Retention and Loyalty

Self-employed professionals value a simple, streamlined experience, and a marketplace allows them to essentially roam your halls and see what opportunities are available across your company.

Providing prospective independents with insight into your company’s projects and processes fosters a sense of loyalty. As part of your trusted network, independents will place a high value on the ability to search for projects that match their expertise, quickly initiate their assignment, and rely on future opportunities for engagement.

5. Target and Retain Top Talent

Direct sourcing tools help position your organization as a Client of Choice—a preferred destination for self-employed professionals. As competition for the independent workforce increases, positioning your company as an optimal client to work with will help you attract and retain top talent.

Independents value freedom, control, and flexibility in their work, and a marketplace like MBO’s exemplifies these values. An assessable system that automates onboarding, payment, and engagement documentation will create a positive experience both for your company as well as for the independent talent you employ. Working with a group of satisfied independents will help increase productivity levels and foster interest in re-engagement.

Direct sourcing tools make it easy for self-employed professionals to engage with your organization. Independents will appreciate working with a company that understands what they are looking for in a client relationship and employs tools that make their experience as straightforward as possible. In turn, your company can reduce recruiting time and costs, ensure compliant engagements, and generate loyalty.

To find out more about how MBO’s marketplace can help your organization acquire and engage independent talent, contact us today.

MBO Partners