Direct Sourcing Archives - Page 10 of 15 - The Future of Work Exchange

Direct Sourcing’s Future of Work Impact

Contingent Workforce Direct Sourcing General Insights Podcast Solution Providers Technology and Innovation by Christopher J. Dwyer on 09/12/2022

The Future of Work Exchange podcast features coverage of industry news, software developments, Future of Work happenings, and, most importantly, conversations with industry thought leaders.

Several months ago, I chatted with Sunil Bagai, CEO of Prosperix, for an insightful Future of Work-oriented discussion (click to listen to the full interview). Sunil and I discussed the changes in how businesses engage talent, the continued growth of direct sourcing, and some interesting Future of Work predictions. Today’s article is a recap of our conversation. [Note that this excerpt has been edited for readability.]

Christopher Dwyer: Seeing how our world of work and talent has been changing so much, you’ve had a front-row seat being where you are in workforce management software space. From your perspective, what do you feel are the biggest changes in the way businesses engage talent and get work done, and how the pandemic has shaped those aspects over the past couple of years?

Sunil Bagai: That’s a really good question. Several changes have been happening. Some of them were obviously sped up by the pandemic. For example, businesses are now much more open to hiring remote workers. And when we say remote, it’s kind of like an umbrella where everybody can be under that remote category. But the reality is we need to slice it a bit further. Remote can be onshore where they’re local to that office, so they can at least still come into the office. Remote can be not local to the office, so some other state or anywhere else in the country. Remote can also be offshore where a person can be in the Philippines, Colombia, India, or somewhere else in the world supporting that organization. There are a variety of different ways to slice and dice what remote really means. And that nuance is new. And it’s important going forward.

Another trend that I’ve seen happen in the last few years is much more openness to a variety of different marketplaces. And that means being able to hire talent directly by going onto a portal, for example. So, that trend has taken off. What that does, however, is create a challenge in these organizations. Why? Because enterprises are not equipped to deal with the nuances of being remote or how to integrate hiring marketplaces into their existing hiring processes. So, for example, their ATS and VMS platforms are not fully equipped to integrate with those new ways of hiring. That’s creating some more challenges and friction, which will get ironed out and addressed as the next few years go on.

CD: Direct sourcing has become such a hot strategy. And the more we talk about it on the Future of Work Exchange, the more we’re educating the market on something that seems to be dominating conversations not only around the Future of Work but also talent acquisition and workforce management. I think back to some of my first encounters with the Crowdstaffing platform, and you were one of the pioneers of direct sourcing. What are your thoughts on where direct sourcing is going and where it could be headed?

SB: Let’s start by differentiating what is traditional direct sourcing. What we’re doing with a hiring marketplace is a step towards direct sourcing without having to necessarily, say, get rid of your suppliers. Because direct sourcing today assumes that you’re sourcing every candidate on your own without the use of suppliers. And I believe there’s a middle ground where you can still use suppliers — your incumbents or your initial supplier pool. The network can be a second supplier pool that can give you more access to talent as well as lower costs. And then you have a third option which is the bucket of direct sourcing, where you can engage talent directly using your brand. I believe that all can coexist.

And the aim is to use technology to publish your jobs across all diverse hiring channels. Each of these becomes a hiring channel…and may the best channel win. It shouldn’t matter where the talent comes from, as long as it’s the best talent and the best price (hopefully). From there, it’s about optimization and being able to select based on quality, based on price, and based on speed for your talent fulfillment. If you can do that, then that’s your ideal solution. It’s not one or the other, it’s a mix of all the options available through one common technology platform to help you achieve your talent needs.

CD: What are some of your 2022 Future of Work predictions — not just technology, but the space in general?

SB: For 2022, you’re already starting to see some interesting things happen in the industry. We’ve seen some large acquisitions, and we’ll probably continue to see consolidation where certain companies try to acquire other companies to have a larger presence in the space and diversify their solution portfolio. And there will be more consolidation of customers, as well.

We’re also starting to see MSPs really up their game and add much more value than they were traditionally accustomed to. Before, MSPs were managing programs, and now they’re really trying to differentiate themselves by offering more capabilities within their solutions. New technology will also continue to surface and add a different spin on how the workforce should be managed. That’s what I’m seeing for the remainder of this year.

The Many Extensions of the Future of Work

Business Leadership Direct Sourcing Podcast Talent by Christopher J. Dwyer on 09/07/2022

The Future of Work Exchange podcast features coverage of industry news, software developments, Future of Work happenings, and, most importantly, conversations with industry thought leaders.

The Season Seven premiere of the Future of Work Exchange Podcast, sponsored by Beeline, featured in-depth, Future of Work-oriented discussion with Jen Torney, VP of Client Engagement at Talent Solutions TAPFIN, and Brian Hoffmeyer, SVP of Market Strategies at Beeline (click to listen to the full interview).

Today’s article recaps a piece of the podcast discussion focused on several key Future of Work-focused topics. [Note that this excerpt has been edited for readability.]

Christopher Dwyer: We’re going to close things out with what I call the “Future of Work lighting round.” Let’s start with remote work.

Brian Hoffmeyer: Remote work is here to stay. We’re talking to our clients considerably about it and doing several workshops with them about the best way to handle it from a contingent workforce perspective. Because it’s not as easy as saying, “I want to hire from low-cost areas.” What does that really mean? What are the tax implications of doing that? There’s a different tax rate and a lot of complexity behind the scenes to work out. I’m still seeing companies make pretty arbitrary decisions about remote work, saying you have to come in on Tuesdays and Thursdays — when that doesn’t make sense. Companies need to be very purposeful in making these decisions as they go through the process.

Jen Torney: Yes to all of that. I would say this is so much bigger of a conversation than whether or not you’re going back into the office. We’re encouraging organizations to really look at their true workforce plan and strategy. Because this changes everything. It changes how you can hire, where you can hire, and at what cost. It becomes a much bigger holistic conversation around the opportunity to completely rebuild organizations. There is a lot of hybrid work, but it’s very arbitrary in approach. Now that I’ve been back to traveling at a pre-pandemic level, in-person makes a difference. It really does. But I’m not sure that clocking in at eight and leaving at five to fight traffic and get home is really going to be a part of our culture anymore — except when there’s a requirement. There are several smart ways to get work done, and that eight-to-five model doesn’t need to be the model to do that.

CD: Up next: direct sourcing.

JT: Direct sourcing is smart sourcing. We think direct sourcing is blowing up. It is definitely a new layer of workforce strategy. I don’t think this is going to replace traditional staffing, but it has its place in niche areas within our workforce. I’m certainly excited to see how this proliferates in the organizations that we’re working with. The smart sourcing aspect of layering and upskilling is going to be the future.

BH: Just do it. Just do it. I think too many companies are taking too long and overcomplicating things. Pick an area, pick a geography, pick a skillset, and get the right providers together and start somewhere.

CD: Off to the next one: purposeful work.

BH: I love this. We’re in this position in our industry to help people find meaningful employment and to get them the skills they need to improve their lives. That’s the ultimate purpose that I see in what we’re doing. I want to continue to see companies not treat contractors as less than and make them part of the workforce. Yes, there are rules you have to follow, but include them in D&I initiatives and company events.

JT: One of the things we’ve realized as a global society over the course of the pandemic is that it’s critical to be part of something, to feel that you are contributing value, and to be able to show up as your best self. Purposeful work is so important to the younger generations, especially those coming up into the workforce. So, figuring out ways as employers to build that into your culture so that you’re creating an environment for the future leaders to feel it is the right place for them from an employment experience.

CD: Let’s roll into conscious leadership.

BH: Jen mentioned letting people be their true selves at work and I think that’s incredibly important. Because that’s going to make them feel included and allow them to bring up ideas that give them the space to fail. As leaders, we must do the same thing — show our own vulnerabilities and give people that space. The blending of work and life is going to continue to happen. And that to me is a good thing. Because you don’t want people to be fake, you want them to be who they truly are. While it seems obvious, the world didn’t use to be that way. The more those separate work and home personalities go away, the better.

CD: Crystal ball for the second half of the year into 2023?

BH: With respect to our industry, you’re going to continue to see an emphasis on the worker themselves and giving the worker good experiences because so many people want to work in this way. You know, permanent employment isn’t really a thing. Even if you take a so-called “permanent job,” your tenure is 18 months on average…or even less now. We’re focused on several things around that to make sure the worker can continue to advance their career in the ways they want to. You’re going to see a lot more of that.

JT: With obvious recession concerns, we’re going to continue to see organizations be more cautious. It’s about hiring and making very intentional decisions to get in front of that. There will probably be a curb in the aggressive hiring that we’ve been seeing over the course of this year. And then absolute radical growth in our travel MSP clients. Travel is returning to pre-pandemic levels and certainly out pacing their expectations. There will be some growth there despite the recessionary concerns.

A recession is an economic trend and part of the cycle. It’s going to happen, it’s just a matter of when. This recessionary period will be a bit more interesting for our business because there will be some contraction but also some expansion in certain categories as well.

The Five Things Driving the Future of Work (Right Now)

Business Leadership by Christopher J. Dwyer on 08/23/2022

If you take a step back and say the words aloud (like I do dozens of times a day), it seems quite weird: the “Future of Work” is about the future, but it also revolves around the present, right? So, when we discuss the Future of Work, we’re essentially discussing the continuous optimization of work through current progressions and how it will evolve over the coming months and years.

And the most interesting idea around the Future of Work movement is that there are so many attributes of work, talent, technology, and business leadership that serve as real-time accelerants and harbingers of things to come.

Here are the five things the Future of Work Exchange believes are driving this moment today (and will drive tomorrow):

The “human” elements of work and talent. From pandemic-driven anxiety and the desire for more purposeful work, today’s business professionals crave more than just a paycheck. These workers truly require an emotional connect with their work in such a way that it solves both the work-life integration problem and allows them some semblance of flexibility in both their personal and professional lives.
Direct sourcing’s continued impact on talent engagement and talent acquisition. Many large-scale enterprises have begun “reactive layoffs” in anticipation for a possible recession. However, as many news outlets would note, there are more job openings right now than there are job seekers. This weird labor market translates into the need for businesses to harness the power of talent pools, talent communities, and talent clouds to essentially overcome the rigidity of engaging and acquiring talent through traditional means.
The transformation of business leadership. This item has long been a foundational element of the Future of Work movement; however, the way leaders lead has been continually evolving since Day One of the pandemic. There is, of course, the notion of conscious leadership and being in-tune with the workforce. And, on top of that, especially today, business leaders must fuse empathy and flexibility into their strategies. They must contend with the remote vs. in-office conundrum, the specter of a recession, and applying the best talent retention strategies to their talent. Transformation, in this case, isn’t a one-shot alteration.
Artificial intelligence drives decision-making. AI can be considered “vaporware” to some executive leaders, however, many of the prominent solutions in the workforce technology industry provide real-deal AI to help procurement, HR, and talent acquisition leaders understand the best-fit talent for a role, how their workforce will look given current economic trajectories as well as fuel enhanced candidate screening and candidate assessment.
The strategic application of new and innovative work models. Worker-led work structures. Digital collaboration augmented by infrequent in-person meetings. AI-fueled process management. Consumerized capabilities across core enterprise functions. An enhanced hiring manager experience. Developing a path to total talent acquisition (and then, perhaps, total workforce management?). The reimagination of worker productivity. These are all innovative ways of rethinking the boundaries of how work gets done, and, true extensions of the Future of Work movement.

Defining the VMS Technology Market: New Future of Work Exchange Research Study Now Available

Contingent Workforce Solution Providers Technology and Innovation by Christopher J. Dwyer on 08/04/2022

Ardent Partners and the Future of Work Exchange have long been preeminent sources of analysis of the extended workforce industry and its associated technologies and solutions. With the introduction of our Technology Advisor (and Solution Advisor) series several years ago, the analyst team has been able to assist thousands of business leaders with the necessary information, insights, and intelligence as they traverse the complex solutions landscape within procurement and spend management, procure-to-pay, contingent and extended workforce management, direct sourcing, and digital staffing.

Today, we announce the publication of the much-anticipated VMS Technology Advisor, a report that assesses and evaluates 11 of the major Vendor Management System platforms that are currently helping organizations around the globe automate key extended workforce management processes, provide access to talent intelligence, and reinforce contingent workforce spend management.

The new report, which is available here, evaluates Beeline, Coupa Contingent Workforce, ELEVATE, Eqip, Pixid, Prosperix, PRO Unlimited, SAP Fieldglass, Utmost, VectorVMS, and VNDLY (a Workday Company).

The 2022 VMS Technology Advisor deep-dives into each provider’s strengths within requisition management, services procurement, SOW management, analytics and intelligence, direct sourcing, Future of Work readiness, total talent acquisition, total workforce management, global capabilities, and other key attributes inherent in today’s leading VMS platforms.

The Future of Flexibility

Business Leadership General Insights Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 07/28/2022

“Flexibility” has become the de-facto, hot-button phrase to describe how the Future of Work should operate. However, if we dig deeper, the very notion of flexibility transcends the confines of remote and hybrid work.

Take a deep breath for a moment. Think about your current role before the pandemic. Now think about it in the throes of 2020 and 2021. Now think about your role today and how you’re working. Chances are there are some very stark differences between these three moments in time.

For one, the very modes of work have shifted tremendously over the past two-plus years. Those that worked remotely found the transition was easy: just stay the course. Those that already had a hybrid schedule understood how to change their mindsets while also transforming their leadership and collaborative styles. And for those in which remote work was a new concept, there were some growing pains.

As we sit more than halfway through 2022, there are more questions than answers in regard to the concepts of flexibility in the workforce, the workplace, and the work itself. While flexibility has become a core piece of our pandemic-era business lexicon, the truth is that there is so much more to the idea of flexibility than what we’ve experienced thus far:

Flexibility also translates into agile thinking regarding the makeup of our workforce. This doesn’t just mean that businesses should increase their utilization of non-employee talent (which, of course, has become a value-driver during these uncertain times), but rather dig deep into all available talent sources and develop a truly agile workforce. Talent marketplaces, digital staffing outlets, and direct sourcing strategies can all enhance the depth of current talent communities and ensure that businesses can be flexible when needed (market conditions, business issues, etc.).
Flexibility should cascade down into attributes such as purpose, work-life integration, etc. For far too long, being a “dedicated worker” meant a gold watch at the end of a very, very long tunnel. Now, in the wake of the biggest health crisis of our lifetime, talented professionals seek more from their jobs; the realm of “purpose” and “work-life integration” both translate into workers craving meaningful work that enables them with flexible hours, flexible projects, and a flexible model that allows for unplugged time, more task-oriented collaboration (rather than open-ended coordination), and the ability to reevaluate career paths more frequently.
Flexibility means reviewing workplace structures to provide a malleable foundation rather than a rigid “return-to-office” setup. If there’s anything we learned about the coronavirus behind COVID-19, it’s that it’s become an unpredictable harbinger of disease and disruption. Fall and winter surges fill hospitals over capacity, shutter public attractions, and force governments to reevaluate social safety and public health regulations. This all means that hardline, return-to-office planning should not only be canceled, but outright replaced by a flexible foundation that is based on science, the overall productivity of the organization, and what works best for the workforce. Too many business leaders believed that this far into the pandemic was the ideal time to bring workers back to physical locations, when they should have been experimenting with new models and assessing what was best for the business and the mental wellness of its talent.
Flexibility should apply to workforce technology and process automation, as well as data science and artificial intelligence. AI and data don’t need to be at the center of every single facet of the contemporary business, but it needs to be at the forefront of how businesses shape talent acquisition and address how work is done. Enterprises must understand the flexibility inherent in today’s crucial workforce and talent tools, like VMS, MSP, direct sourcing, and digital staffing, and tap into the modules that they may have ignored in months and years past. Requisition management and financial/administrative tools are table stakes, however, leveraging “deeper” functionality such as AI-led analytics, expansive candidate matching, candidate experience tools, talent community development, total talent intelligence, and digital recruitment are all incredible doorways into making workforce technology more flexible for an evolving business.

Extended Workforce Evolution and the Modern VMS

Solution Providers Technology and Innovation by Christopher J. Dwyer on 07/21/2022

Way back when (say, about 25+ years ago?), businesses required a veritable system-of-record that could effectively serve as an automated outlet for their many, many staffing suppliers, vendors, and agencies. The birth of the first Vendor Management System (VMS) platforms were essentially akin to “eProcurement for staffing,” with a handful of those organizations blending some basic human capital management competencies into the core of their earliest solutions.

The 2008-2009 Great Recession translated into a “perfect storm” for the contingent workforce arena: businesses sought to regain competitive footholds without the ability to rehire those laid off during the worst of the financial crisis, while those who lost their roles began to realize the incredible value of transforming their talents into what would eventually become the freelance economy.

The past couple of years has reinvigorated the world of non-employee talent in such a way that the collective business market finds itself with nearly half of its total talent (nearly 47%) comprised of contingent labor. The pandemic age has not only reaffirmed the need for businesses to harness the power of VMS technology, but to also take advantage of the many ways these platforms are reinforcing the many accelerants within the Future of Work movement.

The veteran platforms in the space, such as Beeline, have managed to meld the traditional elements of VMS with pioneering innovation, such as direct sourcing (perhaps the first VMS solution to embrace this), advanced SOW and services procurement, AI-led functionality, and human capital-fueled offerings that all contribute to its “Extended Workforce Management” technological overlay (not to mention an industry-leading talent technology ecosystem).

PRO Unlimited has revolutionized the concept of “integrated workforce management” through an aggressive mix of key acquisitions (WillHire for direct sourcing, Workforce Logiq for AI-led managed services, GRI for sheer market expansion, etc.) and a commitment to becoming a “platform of choice” for all aspects of today’s extended workforce.

SAP Fieldglass, a fellow long-time solution, has also progressed its offerings in recent years to include a focus on light industrial and shift management (key functionality for an industry that has seen the largest jump in utilization of contingent labor since the pandemic began), next-generation analytics (fueled by a move to a Hyperscaler data warehouse), and enhanced candidate experience management. The platform, when combined with the power of SAP SuccessFactors, SAP Ariba, and other SAP technology, will continue to be a trailblazer.

Relative newcomer Utmost has redefined extended workforce management with its incredibly flexible functionality, deep commitment to total talent intelligence, native integration with HRIS platforms, and overall sheen of innovation that has helped it stand out from the rest of the market. Its agile technology has also enabled one of the market’s strongest offerings around candidate management and the candidate experience, as well as an appropriate focus on “how work gets done.”

A solution like Prosperix (formerly Crowdstaffing) is a truly unique and revolutionary platform that has turned the design of VMS on its head. The provider’s “VMS Network” is one of the most disruptive products on the market; Prosperix is a true end-to-end vendor management platform built on a talent marketplace with a candidate-centric model.

Coupa’s Contingent Workforce solution is an idyllic blend of spend management and VMS technology, with robust intelligence offerings (including prescriptive guidance based on a wealth of data and information) and some of the industry’s leading candidate-matching functionality. VNDLY, acquired by Workday late last year, boasts one of the best user experiences in the marketplace, along with its real-deal procurement and HR blend of offerings that are now enabled within the larger Workday suite of solutions (VNDLY’s data and intelligence architecture are also a powerful formula for total talent management).

Solutions like VectorVMS (deep partner network with a mid-market focus), Pixid (one of Europe’s most powerful VMS platforms), ELEVATE (unique omni-channel direct sourcing channel offering and incredibly customizable functionality), Eqip (blockchain-fueled functionality and innovative offerings) and FlexTrack (the only VMS built on a SFDC architecture, which opens new and refreshing doors for CWM programs) are also contributing to the extended workforce management technology revolution, as well.

The VMS technology landscape today looks markedly different than it did even a few years ago, and for good reason: the classic iterations of Vendor Management System software wouldn’t cut it in a world that is founded on flexibility and agility whilst also being more talent-led than ever before. VMS needs to be more powerful, more strategic, and, most importantly, tightly aligned with the true future of how work will be done.

Ardent Partners and the Future of Work Exchange will soon release the 2022 edition of its VMS Technology Advisor report, which assesses and evaluates the top providers in the Vendor Management System market and will serve as a guide for those organizations seeking deep analysis of a complex technology landscape as they undertake workforce management solution selection.

There’s So Much More to the Future of Work

Business Leadership Direct Sourcing HR Technology and Innovation by Christopher J. Dwyer on 07/14/2022

There’s so much more to the Future of Work than what we’ve experienced thus far.

Around two years ago, during the very first summer under pandemic-era living, we had all had a strong taste of what the so-called “Future of Work” had to offer: remote work became a normalized attribute of the modern business, corporate leadership was consistently changing in the face of survival, and digitization proved to be a competitive differentiator as enterprises moved operations as a direct plan of attack against transformative times.

Since then, we’ve collectively learned to “live” with a life-changing virus whilst embracing the major changes in the way we address how work is done. While some businesses have instituted “return-to-office” plans, many others have settled on models that work well for both productivity and the satisfaction of flexibility for the workforce.

More so, businesses are operating in environments that are increasingly more digital and more human, two vastly different elements that are shaping the Future of Work for organizations across the world. The Future of Work Exchange has covered these aspects since its inception, however, there is so much more to this movement than what we’ve experienced thus far over these past two-plus years:

The (continued) transformation of talent acquisition and the power of “open talent.” The extended workforce continues to grow. Freelancers and contractors, sparked by The Great Resignation, are “resettling” into new and different (and most importantly, flexible) roles that better suit their needs and purpose. The technology behind how we find and engage talent has been centered on innovation more now than ever before. We haven’t even begun to truly think about how functionality like blockchain can change the Future of Work game; just look at an organization like the Velocity Network Foundation, which blends digital wallets, blockchain-fueled credentialing, and a truly foundational, evolving “rulebook” that guides candidates/talent and businesses.
The real-deal application of artificial intelligence within the confines of “work.” Just because an organization currently leverages a flavor of AI does not mean that this translates into a true application of the technology. AI can become even more of a Future of Work gamechanger when organizations apply deeper elements of its powerful reach, including driving efficiency in hiring, powering predictive and prescriptive insights, and enabling stronger efforts in recruitment. Platforms like HiredScore, Glider.ai, Eightfold.ai, and ModernHire are taking AI in talent acquisition and talent management to a new and exciting era in today’s frenetic labor market.
The rise of conscious leadership. The realm of conscious leadership follows a similar path to the one paved by empathy, in that nearly every facet of human contact between an executive and his or her colleagues and staff is rooted in a meaningful, genuine purpose. A leader’s core approaches involve them becoming more aware of their actions, more aware of how kind and, yes, conscious, those actions and insights may be perceived by the organization’s workforce.
Strategies that began as extensions of extended workforce management that will become table stakes for the world of talent and work…particularly direct sourcing. Direct sourcing experienced its biggest spike in both prominence and utilization since the beginning of 2020 and there are no signs that businesses will slow how they leverage talent pools and talent communities to inject top-tier talent into their organizational projects and initiatives. Direct sourcing technology is evolving, too, in such a way that “Direct Sourcing 2.0,” which follows AI-fueled, digital recruitment-led functionality (as well as next-generation talent curation), will become the prominent form of direct sourcing as businesses progress their utilization of these critical platforms. Providers such as WorkLLama, LiveHire, Prosperix, Opptly, High5, PRO Unlimited (Direct Source PRO, which has recently integrated WillHire into its solution), and AMS are all contributing to the Direct Sourcing 2.0 revolution.

The Impact of Direct Sourcing (and Direct Sourcing 2.0) Beyond 2022

Direct Sourcing by Christopher J. Dwyer on 07/13/2022

In the throes of year of Year Three of a pandemic, historic inflation, and an uncertain economy, the labor market is the very definition of “volatile.” Today, there is a powerful undercurrent happening in the business world that promises to permanently transform the way work is done: the growth, power, and impact of the extended workforce. Enterprises are on the cusp of a permanent change in how works gets done, accelerated by a pandemic that has pushed direct sourcing to the top of HR, talent acquisition, and procurement executives’ priority list.

The sudden shift to remote and hybrid work models forced businesses to pivot their work optimization strategies while simultaneously managing ongoing operations amidst a wildly uncertain present (not to mention, the most severe public health crisis in a century). Two major workforce priorities came to light directly as a result of 2020’s challenging times: the “reimagining” of workforce management (84%, according to Ardent Partners and Future of Work Exchange research) and the greater need for contingent labor (82%).

The era of social distancing, citywide curfews, and global lockdowns have had a profound effect on how businesses find, engage, and manage their workforce. In-person interviewing, scheduled recruiter meetings, collaboration between HR and hiring managers and other “taken-for-granted” procedures became nearly-impossible to perform due to new coronavirus restrictions. In direct response to the biggest public health crisis of the last century, business leaders developed new and innovative approaches to recruiting and hiring.

Too, the increase in utilization of non-employee labor (43.5% of the total workforce in early 2020 vs. nearly 47% of total workforce today) is a leading indicator of where the world of work is heading, and, more importantly, why direct sourcing will become a dominant form of talent acquisition well into 2023 considering that enterprises were required to rethink and “reboot” their workforce management processes. And, as the need for non-employee talent increases, direct sourcing makes ideal sense as the gateway to better staffing processes and superior talent.

Even basic direct sourcing programs can drive value through a combination of on-demand, plug-and-play talent, and hard-cost savings. But the pandemic’s impact on the workforce has dramatically accelerated market shifts. Today, talent is scarce and comes at a premium. As a result, workers are demanding greater flexibility from their employers. They are more focused on work-life balance, while also desiring greater independence.

Among many things, the “Talent Revolution” indicates a seismic shift in power towards the worker and away from the employer…meaning that businesses require a more powerful, more flexible, and more scalable version of direct sourcing. Enter “Direct Sourcing 2.0.”

Now is the time for “Direct Sourcing 2.0,” the next generation of sourcing strategies that blend innovative solutions with a renewed focus on the candidate experience and an ability to use talent pools to populate the key projects and roles that require expertise and experience. Today’s business climate has accelerated the need for a reimagined approach to candidate engagement. As the market for talent continues to tighten amidst the lingering pandemic and a surging number of resignations, businesses find themselves in a new kind of “war for talent,” one that is far more extensive and complicated than anything experienced pre-pandemic.

The Link Between Direct Sourcing and Talent Sustainability

Direct Sourcing Talent by Christopher J. Dwyer on 07/05/2022

Many HR, talent acquisition, and contingent workforce program leaders overlook particular phases of direct sourcing, especially talent curation and segmentation, since they have been conditioned to manage their processes within the confines of a traditional contingent workforce management (CWM) initiative that follows more procurement-oriented procedures (i.e., supply management, heavy cost focus, etc.). Even under a centralized CWM program, the most critical direct sourcing strategies and capabilities require more time, focus, and resources than what is typically available with non-employee workforce management.

For example, talent curation is a critical piece to the direct sourcing puzzle and is considered crucial to the entire hierarchy of the process. In a direct sourcing program, recruiting expertise (via an MSP, talent curation partner, etc.) curates talent for the business, ultimately helping its client build a deep talent cloud or community using a series of augmented approaches, including branded job portals, targeted ads and recruitment marketing campaigns, and artificial intelligence-led candidate matching. The solution that is leading the direct sourcing program can also leverage the organization’s brand power to attract potential candidates, as well.

While some enterprises maintain deep pools of talent that are more “general” in scope, these may not be effective from an agile workforce perspective. Organizations typically overlook talent pool segmentation and maintain a single repository of talent pool candidates; this failure to segment is a missed opportunity to build a nimbler approach to finding candidates based on geography, skillset, role, etc. Talent pool segmentation enables enterprises to better “organize” their candidates for easier, faster, and better alignment with future requirements, as well.

A typical first step in talent community segmentation is to conduct due diligence around candidate skillsets, past work history, compensation, proficiency, and overall enterprise hiring alignment. Segmentation is what allows a business to be more dynamic in how it addresses its talent needs. It also answers many current sourcing challenges while fostering relationships with candidates with emerging and new skillsets or expertise.

By spending more time in the initial phases of direct sourcing (and, subsequently, executing consistent maintenance of internal talent communities/pools), businesses are able to build a more seamless bridge to “talent sustainability,” which the Future of Work Exchange defines as a by-product of leveraging workforce solutions (such as extended workforce technology, VMS, etc.), direct sourcing channels, and both private and public talent communities, etc. to build self-sustaining outlets of talent that 1) map to evolving skills requirements across the enterprise given product development and the progression of the greater organization, 2) reflect existing expertise and skillsets across the enterprise that can be leveraged for real-time utilization, and, 3) allow hiring managers and other talent-led executives to leverage nurture and candidate experience strategies to ensure that all networked workers are amiable and open to reengagement for new and/or continued projects and initiatives.

The Great Resignation has become more volatile, and with its wide-sweeping ramifications playing critical roles in how enterprises structure their workforce in the second half of the year, it is crucial that strategies such as direct sourcing contribute to overall talent scalability. Leveraging the power of direct sourcing’s key elements (and associated technology) can assist businesses in maximizing the positive elements of the “Talent Revolution” and parlay them into means of attracting the best-fit, highest-quality talent. Talent sustainability will be the way businesses thrive in the near future…and direct sourcing is a direct link to get them there.

Digital and Human Convergence: The Art of Managed Direct Sourcing (MDS)

Direct Sourcing by Christopher J. Dwyer on 06/27/2022

Sixty percent (60%) of organizations actively blend digital and human recruitment processes, according to Future of Work Exchange research, reinforcing the notion that direct sourcing must unify traditional talent acquisition methods with innovative direct sourcing technology. This is exactly the foundation of “managed direct sourcing,” which entails a multi-phased series of strategies, underpinned with technology, that drives a continuous flow of candidates who can be engaged and hired in an on-demand fashion. MDS differs from traditional direct sourcing in the sense that it is more controlled, repeatable, and, most critically, highly-scalable.

MDS is typically offered as a services-based solution through a Managed Service Provider (MSP) and augmented with direct sourcing technology offered by an ecosystem of platform partners. An MDS offering will typically drive talent curation and other key program elements, while the direct sourcing platform partner will enable a series of repeatable processes including referral campaigns, nurture strategies, messaging and collaboration, and diversity engagement. What sets MDS apart from traditional direct sourcing is its symbiotic relationship between full-lifecycle, human-led services and agile digitization.

What enables MDS to stand out from traditional direct sourcing programs is its “beating heart,” comprised of a technology stack that can build on the human-led strategy and transform hiring processes to be repeatable and scalable, while establishing new prospect channels for hiring managers. As described earlier in this report, the major differences between MDS and traditional direct sourcing are the factors that frequently impact how the whole of the business finds, engages, and sources its top-tier talent. Businesses with direct sourcing automation are able to execute on “deeper” elements of this talent-led program. With less dependence on traditional, resource-heavy sourcing and recruiting approaches, a “digital-led” direct sourcing program that relies on deep CWM expertise can drive superior talent outcomes.Businesses that have tapped into direct sourcing automation are able to improve their programs with scalable processes that can drive superior talent engagement, help nurture top talent, and boost the overall candidate experience:

Direct sourcing automation is an ideal tool to improve candidate matching and talent engagement. A technology-led model requires less dependency on internal staff, drives greater “talent funnel” generation, while also improving the identification of and engagement with high-value candidates. For example, human curation is an excellent strategy for businesses that requires a high-touch approach towards talent pooling. However, the impact of direct sourcing automation adds additional value by improving the overall targeting of candidates by enhancing the alignment of enterprise requirements and available skillsets, and, most importantly, by enabling direct sourcing processes and strategies to be streamlined and standardized across the enterprise. Best-in-Class direct sourcing solutions also offer robust candidate referral functionality that can drive additional talent engagement without the organization spending significantly more time and resources. These capabilities are generally available and optimized within a solution’s mobile application
Direct sourcing platforms enable repeatable, collaborative processes with key candidates. The most overlooked aspects of direct sourcing are within its “secondary” phases, particularly talent nurture strategies and candidate communications. While MSP leaders in a managed direct sourcing program will guide businesses to craft/use the messaging they will need to engage candidates after they have been curated and locked into talent pools, the direct sourcing platform can transform these processes into repeatable campaigns that involve both email and SMS/text message communications, ensuring that all candidates feel valued and “in touch” with what is happening within the greater
organization. This is a key element in fostering an environment of connectivity, openness, and inclusivity. These attributes are becoming more critical for today’s evolving workforce and they allow independent workers to better align their skillsets with specific projects and pick-and-choose how they want to work.
Direct sourcing solutions enable users to tap into the power of their brand and culture to attract the best candidates. Compensation is not the only aspect that today’s workers (either traditional or contract) value in a potential employer. Aspects such as culture, diversity and inclusion, and the overall corporate social responsibility of a businesses are crucial factors that can determine whether a candidate wants to be engaged with a potential project or employer. Direct sourcing solutions offer functionality that can help users build “job portals” that leverage the enterprise’s brand, colors, and other unique, marketing-specific attributes. Candidates that align with a company’s brand are more likely to opt-in to receive news about job postings, new roles, upcoming projects, etc. This can be an incredibly powerful lever for managed direct sourcing because it taps into the power of an enterprise’s culture to attract star workers and candidates. This can also foster greater loyalty between contingent workers and their employers, something that is often missed by legacy talent acquisition models.
Direct sourcing automation enables holistic reporting that can cascade into other talent acquisition strategies. The intelligence gleaned from direct sourcing platforms and MSP-driven direct sourcing programs can be harnessed for greater workforce planning, particularly when forecasting future utilization of both contingent and full-time talent.