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In the realm of workforce management, the concept of direct sourcing has not escaped the fervor of its own hype machine. The question persists, though: what defines direct sourcing? What is its true “reality”? What “state” is direct sourcing in today, given the evolution of talent acquisition and extended workforce management?

There is no easy answer, unfortunately. The most interesting facet regarding direct sourcing is that the industry has not yet settled on a true definition; much like contingent workforce programs can be called such without a drop of automation or third-party support, direct sourcing often falls into the same spectrum. Even without a VMS, extended workforce platform, or MSP in place, businesses can state that their non-employee workforce programs are tried-and-true (and “end-to-end”) even in cases where additional attributes, particularly services procurement and SOW management, aren’t considered part of the overall initiative.

Misconceptions surrounding direct sourcing often center on the intricacies of its implementation and the true characterization of what qualifies as genuine “direct sourcing.” Does an enterprise curating its talent internally and channeling candidates into a talent pool truly embody direct sourcing as a core workforce strategy? To discern the essence of direct sourcing, we must explore its full spectrum, including segmentation, integration into primary recruitment streams, and the facilitation of talent nurture capabilities — which is where the question arises: is automation indispensable for it to be deemed a true, end-to-end program? Do enterprises require deeper talent technology stacks to ensure direct sourcing meets its potential as a talent acquisition gamechanger?

That question is a bit easier to answer. Event though direct sourcing stands apart as a workforce strategy that yields significant benefits even when its components are selectively harnessed, there is so much more value in the initiative when its fueled by next-level automation and an edge of talent acquisition transformation. While businesses prioritizing meticulous talent curation and the optimization of talent communities often find themselves equipped with top-tier candidates, particularly crucial in an era where experience and skillsets reign supreme, the truth is that the full potential of direct sourcing, especially in terms of talent nurture, referrals, and skills-based hiring, requires the incorporation of advanced capabilities facilitated by direct sourcing platforms, artificial intelligence (AI), and extended workforce automation.

Yet, challenges abound. Executive buy-in, functional collaboration, and recruitment disparities can impede the success of direct sourcing. It is crucial to recognize that talent curation alone is not a panacea, and merely applying direct sourcing-like processes to existing talent acquisition capabilities falls short. Enterprises must delve into the core motivations behind adopting direct sourcing and implement comprehensive measures for its end-to-end execution. Cost savings demand agile talent engagement and the seamless integration of talent pool/community candidates into existing recruitment streams, while an enhanced candidate experience necessitates placing AI and related technology at the forefront of every candidate journey, particularly in a mobile setting.

And, with skills-based hiring becoming a critical recruitment initiative for 2024, defining “direct sourcing” will entail converging multilayered strategies and solutions, along with progressive business thinking, into a seamless program that facilitates the next generation of hiring.

Tags : 2024 TrendsAIDirect SourcingExtended Workforce ManagementMSPskills-based hiringTalent AcquisitionVMS