Direct sourcing is a pivotal strategy in talent acquisition that empowers organizations to proactively identify, attract and engage top talent. With the growth of the gig economy and blurring of lines between full-time and temporary employment, workers who traditionally seek full-time employment are increasingly willing to take up temporary placements—and vice versa. Organizations that create and nurture blended talent pools of both permanent and contingent workers through direct sourcing best practices can bypass traditional recruitment channels and connect with top talent in a more personalized and efficient manner.  

Here are seven direct sourcing best practices to successfully implement direct sourcing as part of your talent acquisition strategy: 

1. Focus on Your Employer Brand 

A strong employer brand showcases what makes your company unique and appealing, serving as a powerful magnet for skilled professionals seeking temporary, project-based and full-time work. Investing in your employer brand pays dividends in direct sourcing by reducing time-to-hire, improving the quality of candidates and enhancing candidate engagement. Moreover, it helps build trust and credibility with potential workers, making them more likely to choose your organization over competitors. 

To build an effective employer brand, start by developing a compelling employer value proposition (EVP) that highlights the distinct advantages of working with your organization. This should encompass your company’s values, culture and the unique opportunities you offer. Consider factors such as flexible work arrangements, challenging projects and professional development opportunities. Communicate these elements clearly and consistently across your website, social media platforms, email nurture campaigns and other channels to create a cohesive brand image. 

With 41% of companies expecting to increase their use of contingent workers, it’s important to ensure that your EVP applies to both your temporary and permanent employees. Have you formally defined the value proposition for contractors? Contingent workers are a part of your cultural DNA and deserve the same experience as full-time workers. It may help to shift from using the term EVP, which implies the value is only experienced by those you employ directly, to using Worker Value Proposition (WVP) to make it more inclusive. Direct sourcing can help that drive that connection to the employer brand —regardless of classification. 

2. Implement Robust Technology 

Technology forms the second cornerstone of successful direct sourcing, providing the essential infrastructure for implementing and optimizing sourcing strategies. In fact, the effectiveness of most of our direct sourcing best practices hinges on the availability and proper utilization of advanced technology tools.  

Look for solutions that offer AI-powered matching capabilities, which can dramatically improve the speed and accuracy of candidate selection. For example, PeopleScout’s Direct Sourcing is a tech-powered solution that helps you rediscover candidates who are already in your candidate database with the use of AI. Affinix™, our proprietary talent acquisition suite, compares your job description against profiles in your database and identifies a list of the best candidates—whether they’re previous applicants, individuals who have filled out an expression of interest form for the role, or silver/bronze medalists from previous requisitions. You receive a weighted score for each candidate (based on previous job titles and experience, skills profile and management experience) along with a written summary. Your hiring manager can then determine which candidates they want to pursue immediately, and which to add to a talent pool, where they’ll receive additional outreach before being invited to apply.  

We can also use our AI smart search technology to tap into 1.3 billion candidate profiles across multiple external talent databases. This vastly expands your access to talent by identifying strong candidates within seconds of opening a new job requisition.  

In addition to outbound channels, PeopleScout’s Direct Sourcing offers technology solutions for inbound sourcing channels including custom careers sites, internal job portals, expression of interest forms and programmatic advertising.  

In addition to sourcing capabilities, prioritize platforms with robust automation to reduce manual tasks and free up your team to focus on strategic initiatives. Don’t forget comprehensive analytics to help you continually refine your sourcing strategies, identify trends and measure your efforts.  

3. Create Segmented Talent Pools 

Creating segmented talent pools is a crucial strategy in effective direct sourcing, allowing organizations to target their efforts more precisely and efficiently. By developing and maintaining pools of both permanent and contingent talent based on skills, experience levels and job types, companies can quickly identify and engage the best candidates for specific roles or projects.  

This targeted approach allows for more personalized engagement strategies, tailored communication and faster matching of candidates to opportunities. Through analytics you can develop an understanding of each talent segment’s unique needs and motivations, allowing you to refine your value proposition for different groups. Ultimately, segmented talent pools build stronger connections with candidates, improving the quality of hires and the efficiency of your direct sourcing program. 

4. Develop Talent Engagement Strategies 

Once you’ve established distinct talent segments, it’s essential to develop and implement engagement approaches that resonate with each group’s unique characteristics and preferences. This personalized approach ensures that your communication is relevant, timely and effective, increasing the likelihood of attracting and retaining top talent for your organization. 

Implement a robust CRM and recruitment marketing engine to streamline and automate these engagement processes, allowing for consistent and personalized interactions at scale. Regularly provide updates, feedback, and relevant information to keep candidates engaged and interested, fostering a sense of connection with your organization even before a specific opportunity arises. Your engagement strategy should also span social media, networking events, relevant online platforms, industry associations and SMS to keep your talent pools informed about opportunities and foster connection. 

This approach not only helps you cultivate a diverse pool of specialized talent but also positions your organization as an attractive option for skilled professionals. By maintaining active engagement with passive talent, you create a ready pipeline of qualified candidates, enabling you to quickly scale your workforce and access a broad spectrum of skills and expertise when needed. 

5. Focus on the Candidate Experience 

In the realm of direct sourcing best practices, a positive candidate experience not only enhances your organization’s reputation but also increases the likelihood of successful placements and repeat engagements. Regardless of whether a candidate is up for a permanent or contingent role, they’ll be expecting a mobile-first, streamlined, informative and engaging process from initial outreach through placement. 

Focus on transparency and communication throughout the sourcing process. Provide clear, detailed job descriptions and requirements, offer insights into your company culture and set realistic expectations regarding timelines and next steps. A tech-powered solution will feature automation that ensures candidates receive timely responses to their applications and inquiries.  

By prioritizing a positive candidate experience, you not only improve your chances of securing top talent but also build a strong employer brand that attracts high-quality candidates to your talent pools over time. 

6. Optimize Direct Sourcing Performance 

Measuring and optimizing the performance of your direct sourcing program is crucial for long-term success and continuous improvement. To effectively gauge the impact of your efforts, it’s essential to track key metrics that provide insights into various aspects of your sourcing strategy such as time-to-fill, quality of hires, cost per hire, candidate engagement rates and source of hire. Additionally, monitor the size and quality of your talent pools, the effectiveness of your engagement strategies, and the overall satisfaction of both candidates and hiring managers.  

Regularly analyzing these metrics will provide a comprehensive view of your direct sourcing program’s performance and highlight areas for improvement. For instance, if you notice a particular talent pool consistently yields high-quality candidates with shorter time-to-fill rates, you might allocate more resources to cultivating that segment. Similarly, if certain engagement tactics result in higher response rates, you can refine your communication strategies accordingly.  

Continuously refining your approach based on performance data ensures that your direct sourcing program remains agile and effective, adapting to changing market conditions and organizational needs. Remember, the goal is not just to collect data, but to translate these insights into improvements. 

7. Consider Outsourcing to a Talent Partner 

While implementing a successful direct sourcing strategy can yield a competitive edge, it requires substantial resources, expertise and ongoing management. This is where a total talent solutions partner can be a game-changer for organizations.  

Outsourced total talent solutions providers who offer recruitment process outsourcing (RPO) and managed service programs (MSP) have the advantage of scale and specialization. They continuously invest in the latest sourcing technologies, stay abreast of market trends and refine their strategies based on data from multiple clients across various industries. This expertise enables them to build and manage segmented talent pools more efficiently, implement sophisticated engagement strategies and deliver an outstanding candidate experience.  

Moreover, a partner brings consultation to a direct sourcing solution. By evaluating the skills gaps in your organization in line with your anticipated demand, a talent partner can help you develop more formal workforce planning to keep you ahead of the curve. Direct sourcing can play a major role in pipelining talent so you can tap into it at the right time. 

This approach not only saves time and costs from staffing agencies, but it also provides access to a broader and more diverse talent pool, enhances employer branding efforts and improves the quality of hires. Ultimately, partnering with a provider to help execute direct sourcing best practices enables organizations to achieve better results faster, positioning them to combine approaches for contingent and permanent talent acquisition management and take steps toward total workforce management. 

The evolution of remote work has resulted in the growth of the gig economy and the blurring of lines between full-time and temporary employment. Workers who traditionally seek full-time employment are increasingly willing to take up temporary gigs—and vice versa. Organizations that create and nurture blended talent pools of both permanent and contingent workers can be more intentional with workforce planning to address skills gaps and diversity goals. Enter direct sourcing—a game-changing strategy that’s reshaping how companies approach talent acquisition.  

By integrating direct sourcing into your total talent acquisition strategy, you can turn these talent pools into your strongest channel for growing your workforce, bringing forward pre-engaged talent. This results in faster hiring and improves overall organizational productivity. With direct sourcing, you can uncover hidden talent and gain a competitive edge in attracting top-tier candidates. 

But what is direct sourcing, and why should talent acquisition leaders pay attention? In this article, we’ll delve into the importance of direct sourcing, it’s role in total talent management, its benefits, and the crucial role of technology in a direct sourcing solution.  

What is Direct Sourcing? 

First things first, what is direct sourcing anyway? Direct sourcing is a recruitment approach that leverages an organization’s employer brand and existing talent database to build and manage talent pools for both permanent and contingent positions. This method allows organizations to engage directly with potential hires, including former employees, retirees, referrals, interns, and even “silver medalists” and candidates who were runners-up in previous hiring processes. Unlike traditional methods that rely heavily on staffing agencies, direct sourcing creates a pipeline of freelance, temporary and permanent talent, reducing costs, improving hiring efficiency and allowing employers to take control of their hiring needs. 

At its core, direct sourcing involves: 

• Utilizing your employer brand to attract talent 
• Creating and managing exclusive talent pools 
• Proactively engaging with potential candidates 

Direct Sourcing: The First Step to Total Talent Acquisition? 

According to Everest Group, 46% of enterprises are actively exploring ways to combine approaches for contingent and permanent talent acquisition management, and 74% see direct sourcing as the way to do it. By sharing people, processes and technology across vacancy types through direct sourcing, organizations gain efficiency and get closer to total workforce management.  

So, it’s no surprise that more and more organizations are choosing to outsource their direct sourcing program, either coupled with their Managed Service Program (MSP) or through a Recruitment Process Outsourcing (RPO) provider.  

Partners like PeopleScout excel at direct sourcing, as their specialty lies in seamlessly integrating with client teams, leveraging the client’s employer brand to attract top talent. Plus, with a partner, you gain access to specialized technology for managing and curating talent pools, ensuring a streamlined and efficient process while still maintaining the benefits of direct engagement with potential hires. 

The Benefits of Direct Sourcing 

Direct sourcing offers numerous benefits that are driving its adoption among forward-thinking organizations. Let’s explore the top advantages: 

• Faster Hiring Cycles: With always-on talent pools, direct sourcing can significantly reduce time-to-hire. By eliminating the need for a staffing agency and leveraging candidates who already exist in the ATS and CRM (and are familiar with your employer brand), direct sourcing puts engaged candidates at your fingertips. Having regular access to qualified candidates, referrals and former employees allows you to easily adjust to changing workforce needs. 

• Greater Cost Savings: Direct sourcing can significantly reduce recruitment costs by minimizing reliance on staffing agencies and their associated fees. An RPO partner who can offer AI-powered sourcing and innovative ways to ensure smarter media spend can reduce your costs and maximize your ROI for direct sourcing.  

• Higher Quality of Candidates: By leveraging your employer brand and creating curated talent pools, direct sourcing allows you to attract higher-quality candidates who are better aligned with your organization’s culture and needs. Through personalized engagement with candidates, RPO providers can gain a deeper understanding of their skills, experiences and motivations. Additionally, direct sourcing allows companies to build lasting relationships with top talent, creating a talent pool that can be tapped for future openings. 

• Enhanced Candidate Experience: Direct sourcing means more personalized and human interactions, which improves the candidate experience. By engaging proactively with potential hires, you can provide a smoother, more informative process that reflects positively on your brand. 

• Employer Brand Attraction: In a direct sourcing engagement, your RPO partner is an extension of your team, transforming your employer brand into a powerful tool in attracting top contingent and permanent talent. Direct sourcing allows you to showcase your company culture, values and opportunities through relevant and engaging touchpoints, helping you become an employer of choice.  

• Access to Data & Insights: With extensive experience across job families and regions, RPOs are well suited to evaluate your unique recruitment metrics against market trends to enable data-driven decision making for your direct souring program. Detailed analytics help decode top talent behaviors and predict cultural fit, willingness to change companies and future tenure potential to improve hiring speed and accuracy over time. 

• Improved Diversity: The targeted nature of direct sourcing means you can identify, select and engage candidates from various audiences to meet diversity goals.  

• Improved Hiring Manager Experience: Direct sourcing provides hiring managers with better access to high-quality and diverse talent pools, freeing them up to focus on leading their teams instead of recruiting. 

The Role of Technology in Direct Sourcing 

While the concept of direct sourcing is powerful on its own, technology unlocks its true potential. Modern direct sourcing solutions leverage AI, multi-channel sourcing, communication automation and analytics to supercharge the approach. 

When deciding on a direct sourcing solution, consider the following technologies: 

• AI and Machine Learning: These technologies enable superior skills matching, connecting the right candidates with the right opportunities more efficiently than ever before. PeopleScout Direct Sourcing helps you rediscover candidates who are already in your applicant tracking system (ATS) with the use of AI. Affinix™, our proprietary talent acquisition suite, compares your job description against profiles in your database and identifies a list of the best candidates—whether they’re previous applicants, individuals who have filled out an expression of interest form for the role, or silver/bronze medalists from previous requisitions. You receive a weighted role suitability score for each candidate (based on previous job titles and experience, skills profile, and management experience) along with a written summary. Your hiring manager can then determine which candidates they want to pursue immediately, and which to add to a talent pool, where they’ll receive additional outreach before being invited to apply. 

• Smart Search: In addition to your existing ATS, consider a direct sourcing solution that enables you to search across multiple external talent databases—such as LinkedIn and Indeed—simultaneously and save relevant candidate profiles into your own database. This helps you beat your competitors to hard-to-find talent and source more efficiently with a seamless experience for your hiring managers. AI can be applied to these candidates as well to identify strong candidates—passive or active, known or new to you—within seconds of opening a new job requisition. 

• Multi-Channel Sourcing: To truly capitalize on your employer brand with your direct sourcing program, a multi-channel approach that leverages recruitment marketing to reach top talent is crucial. This includes custom career site and microsite development, for both internal and external job portals, expression of interest forms and programmatic advertising. This holistic approach will re-engage talent and excite them about your opportunities. 

• Personalization at Scale: Your direct sourcing solution should feature recruitment marketing technology that helps you develop a series of automated targeted communication touchpoints to engage or re-engage with passive candidates, silver/bronze medalists, contractors, alumni and referrals. Personalized emails and automated drip campaigns will keep your brand top-of-mind. Use analytics from communication and nurture campaigns to access insight into which candidates are engaging most with your content and whether the content you’re distributing resonates with the candidate pool. 

• Data-Driven Insights: For your direct sourcing program, insist on robust reporting and analytics capabilities. However, according to Everest Group, 52% of organizations who are considering direct sourcing cite the lack of technology integration between permanent and contingent tools as a challenge they are currently facing or anticipate facing. Integrating your existing VMS and ATS into one analytics platform is a must for total talent management in order to gain insight into both your permanent and contingent openings.  

Conclusion 

As the world of work continues to evolve, direct sourcing is poised to play an increasingly important role for organizations aiming to streamline their total talent acquisition processes and attract the best candidates.  

As you consider implementing direct sourcing in your organization, remember that while the human touch remains invaluable, technology is a crucial enabler. Industry leading direct sourcing solutions are AI-powered, combining cutting-edge technology with expert talent curation and engagement strategies. 

By embracing this approach, organizations can position themselves at the forefront of talent acquisition innovation, ready to attract and engage the best contingent and permanent talent in an increasingly competitive landscape.