Direct sourcing (DS) can help you deal with a number of challenges facing organizations:

1. Growing need for specialized skills to meet specific needs

Given the fast pace of technological change today, many organizations find themselves facing problems and opportunities they've never faced before. This means that they need highly specialized workers on short notice to deal with an issue or complete a temporary project initiative.  

2. Many skilled workers are available only on a temporary basis

Many of the most skilled and tightly-focused workers tend not to seek full-time jobs. Some reasons for this:

  • They’re so focused that there are few companies that can use their skills on a continuous basis.
  • Their skills are so uncommon that they can charge their clients higher rates than many organizations can afford to pay full-time.
  • They like facing new challenges – partly because it helps them hone their skills and keep them current.
  • They can earn enough working part-time to fund a lifestyle that includes travel and pursuing their own interests.
  • Technology makes it easier to connect with people who need their skills and to be able to work with them through mobile interfaces.

3. Social networks help you keep your connections up to date

It’s now easier than ever through social networks such as LinkedIn and Google+ for you to build networks and keep in touch with your organization’s community of past and present contract workers. This means it is easier than ever to do your own recruiting, or reconnect and reengage with someone you’ve worked with in the past.

This means that for many engagements, there is no need for a recruiter, and senior managers can do it themselves, thereby saving time and eliminating recruiting fees.

4. When is direct sourcing the best solution?

If you have a highly specialized short-term need, one way to find the right worker is through an agency that searches its databases of skilled contingent workers to find people with the skills you need who are available when you need them. That can be the best solution in some situations, such as when your own network doesn’t contain someone with the right skills.

But it can be that you do know someone who’s exactly what you need – or one of your employees is able to refer a trusted friend or colleague. You like the fact that this person can fit into your culture and way of working, and you have your employee’s recommendation. Maybe you’ve worked with this person before, and you want to re-engage their services.

But you don’t want the hassle of negotiating pay rates or other payroll tasks. And, you particularly don’t want to take on the risk that the tax authorities will determine that this person should be considered an employee, exposing your company to further costs, including maybe fines.

If this describes your reality, DS may be the best way for you to get the results you need.

Up next:  Misconceptions about direct sourcing >>