Why Direct Sourcing Is Critical To Optimize Your Temp Workforce

The share of contingent workers in an organization’s workforce has grown significantly in the past few years. Despite its growing importance, the temp labor ecosystem has not seen much change in attracting and retaining top qualified contingent workers unlike the regular workforce.

Although contingent labor plays a critically role in achieving business objectives, enterprises lack strategies such as leveraging employer brand to attract talent, building employee referrals and other web-based talent attraction channels, talent retention frameworks in their temp labor ecosystem.

Unlike full time hiring, temp labor hiring strategies have not transformed to meet the evolving job seeker behavior. More than 90% of talent today starts their job search online and 69% of them start that on Google. Temp labor hiring strategies are not optimized digitally to map the online job search funnel. For instance, do employers have mobile optimized career pages for temp labor? In most cases, the answer is no!

The lifecycle of a temp talent during its association with an employer is solely managed by a third-party staffing supplier.

The Role of Direct Sourcing

Direct sourcing allows enterprises to adopt direct hiring talent attraction strategies into their temp labor ecosystem and offers a path towards Total Talent Management.

Most of the direct sourcing solutions available in the market currently leverage employer brands to create temp labor career pages, build employee referral networks, screen talent using online assessment tools, offer seamless candidate experience through digital platforms and retain temp talent effectively.

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Direct sourcing solutions have been successfully implemented by large enterprise clients without any disruption to their existing program and has proven to optimize bill rates by 20%.

Many of these solution are also integrated into industry’s leading vendor management systems. These integrations allow employers to create and manage a pre-vetted pool of temp labor candidates within the Vendor Management System.

The advanced analytics available in modern day direct sourcing solutions allows enterprises to make informed decisions to effectively optimize their contingent workforce program.

Many enterprises already have payroll service providers as part of their programs to manage workers sourced through internal channels, which regularly is referred in the industry as “internally identified candidates.” When compared to supplier-sourced candidates, the bill rates and related markups of these candidates is significantly lower. Enterprises can leverage the latest direct sourcing platforms to attract and engage candidates, while re-purpose their existing payroll providers to manage the direct sourced workforce. This brings in potential cost savings into the programs.

Bridging the Gap

Direct sourcing allows for a more streamlined approach for contingent workforce management in attracting, curating and engaging top qualified temp talent pool using the employer brand.

As the latest trend, direct sourcing brings a long due innovation to the temp labor landscape abridging the gap between full time and contingent talent attraction strategies to help enterprises take an effective path toward total talent management.

MORE: Using direct sourcing to deliver Covid-19 solutions

Praneeth Patlola

Praneeth Patlola
Praneeth Patlola is chief product officer of WillHire, a direct sourcing and talent pool management platform.

Praneeth Patlola

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