Recruiting is not only confined to full-time or permanent workers. Skilled contingent labor is the future of staffing as organizations have increased their focus on providing workforce agility.

Employers are increasingly opting for contract-based labor to improve productivity, quick turnaround, and fulfil temporary workload needs efficiently.

A contingent workforce sets a higher bar of expectations for short or definite-time positions and raises the demand for finding the best contingent talent. Organizations are experiencing a competitive advantage by choosing the cost-effective and less time-consuming method of Direct Sourcing to ease the entire recruitment and onboarding process.

And why not?

Direct Sourcing is faster and shortens the hiring process because of the available supply of interested candidates to source the workforce. Additionally, it is cost-effective and eases supplier markups.

Direct Sourcing creates an automatic workflow of communication that helps internal recruiters to focus more on relationship-based aspects of their job and improve overall time and consistency. The process includes the establishment of Direct Sourcing, availability of contingent workers, and their interest well before personal contact.

Direct Sourcing either involves a software solution used by Hiring Managers to access the pool of contingent workers, or it comes with the combination of software tools with additional services to curate, maintain, and elevate the pool of candidates for managers.

Putting up a Direct Sourcing solution is not the same as adding a new staffing supplier to the organization program. The role of the Vendor Management System or the Managed Solutions Provider changes slightly with the Direct Sourcing strategy in terms of allocated requirements. The Direct Sourcing solution providers can integrate their software with the leading VMS providers without additional cost or setup, driving efforts towards the maintenance of the talent community. These VMS providers help to create, develop, and organize the talent community on behalf of the organization. These activities typically are keeping contingent worker profiles updated, validating worker skill sets, monitoring community activity, and consistently reaching out to contingent workers to uphold their interests.

Collaboration among the service providers and the organization’s talent acquisition team plays a significant role in the customization and expansion of the talent community to meet their goals.

Direct Sourcing solutions reduce the cost combined with the traditional recruitment process. The usual staffing supplier markup ranges from 45% – 50%, whereas the Direct Sourcing markups are 10%-15%, which is comparatively low and includes the cost of both the technology and the providers.

Companies save more through the Direct Sourcing program than through a traditional model, even while paying the contingent worker. Higher pay boosts the opportunities to attract and retain higher-quality talent.