Direct sourcing is the newest adopted method for finding and hiring new talent. Well over 50% of large companies are already using or are planning to use a direct sourcing program to bolster their company’s staff. Direct sourcing, by definition, means to optimize the acquisition of both new and pre-identified talent through the creation of private networks. These networks are composed of qualified and engaged potential new hires, narrowing down the talent pool. Instead of relying on inbound applications, direct sourcing connects professionals with talent from known populations. These populations can be from interns, referrals, general applicants, retirees or even alumni.
Effective and efficient direct sourcing relies on ensuring that candidates within the pool fit a number of important criteria. First, these candidates must possess the needed skills for each job opening. In addition, they must be ready to deploy often on short notice. These engaged new hires should be part of the community of known and new talent, which includes both active and passive job seekers. The most important aspect of direct sourcing is to continuously refresh the pool, ensuring that talent remains relevant and well-equipped for the demands of today.
The creation of these talent pools can happen through a number of different professional channels. Most commonly, digital newsletters, job alerts, and social platforms are a great way to find new hires and refresh the talent pools. In addition, in-person events, professional networking sites, and industry forums can help attract the right people for the job.
The true power of direct sourcing is in the evidence. This solution is not only convenient, but it is a true and adaptable solution that allows industry professionals to prepare for the changes ahead. Currently, the United States is facing a talent shortage, with half of staffing firms claiming that labor shortages were the most significant challenges of last year. In addition, experts have predicted that there will be $8.5 trillion in unrealized revenue by 2030 due to unfilled jobs. Direct sourcing tackles some of these problems, as nearly 100% of businesses have reported cost savings from their direct sourcing efforts. Also, the United States is seeing a growth in employment expenses, with new-hire pay climbing to 9% higher than usual.
With these truths in mind, it is no surprise that methods like direct sourcing are here to stay. In fact, the condition of today’s labor market has created a perfect storm for reinventing the hiring process across industries.
Source: Atrium Global