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Direct sourcing happens when an organization recruits its own workforce directly rather than engaging the services of a third party vendor like a Managed Services Provider (MSP) or a staffing agency. Direct sourcing allows the organization to establish its own talent pool and control its employer brand.

It's a wild work world in an uncertain labor market, yet hiring it happening.

In fact, a new study from StaffingHub finds that 71 per cent of staffing firms expect the industry to come back stronger than before, which intimates employers are putting strategies in place now in order to capitalize on immediate, current or future needs - and many employers are planning on moving away from traditional employment models.

As employers attempt to drive business forward by leveraging more flexible workforce models, it's critical that recruitment professionals are aware of the sourcing strategies used for these types of non-traditional worker engagements.

Direct sourcing programs don’t have to be an all-or-nothing approach when looking to bring talent into your workforce. They do, however, require employers to take five big decisions into consideration in order to launch an effective one. These decisions include: Sourcing format, Engagement management, Rate card format, Onboarding requirements and Governance/KPI's.

Contingent talent may go by many different titles: Gig workers, Freelancers, Independent Contractors, temporary talent or Contingent Workers, yet regardless of naming conventions, this type of talent works to provide organizations with flexible, skilled staffing solutions to help employers quickly respond to the many market changes and demands.

A popular sourcing strategy for many organizations is launching a Direct Sourcing program in combination with, or instead of, engaging third party staffing vendors for the acquisition of skilled talent and contingent workers.

They go by many different titles: contingent workers, gig employees, freelancers, contractors, but regardless of naming, they all serve the same purpose: providing organizations with flexible, skilled staffing solutions to help them quickly respond to market changes and demands.

In the past it was very common for organizations to source their contingent labor through a staffing or recruiting company. For a flat fee or a percentage of each workers’ pay, the recruiter would vet resumes, qualify workers, negotiate pay rates, and manage all payroll and compliance for that worker. In return, the client received timely access to skilled consultants and workers and was glad to outsource the process to their trusted suppliers.

In an effort to save money, better manage talent, and regain control over their recruits, companies have become increasingly more comfortable taking on some or all of the contingent worker engagement process for simple or frequent openings within their organizations. The practice of engaging contingent workers directly is known as direct sourcing and while it is true that direct sourcing can save companies money, the opposite can also be true if the company doesn’t have the proper resources in place or a formal program to manage the process. This post will address some of the challenges with direct sourcing, as well as five key decisions companies need to make when establishing their own direct sourcing program.

It’s important to note, direct sourcing programs don’t have to be an all-or-nothing approach. In fact, many companies use direct sourcing for routine or frequently engaged contingent worker requirements and still use an outside staffing agency to manage complex roles, executive positions and other senior company positions.

Whichever route you choose, below are some considerations to help enhance your program: