The Covid-19 pandemic, and the impacts and disruptions it has caused to businesses across all sectors, has truly transformed the global economy, and has forced virtually every organization to reexamine how they approach their workforce strategy. In particular, companies are responding to economic fluidity and uncertain market conditions by tapping into contingent talent sources in order to remain agile and flexible, and be able to quickly scale staff up or down as needed.

As more organizations rely on contingent workers to meet evolving business needs, employers require greater access to talent and more favorable labor costs to achieve a distinct market advantage. To achieve this, many organizations are forgoing third-party contingent suppliers in favor of direct sourcing contingent recruitment models that lead the employer to engage directly with potential talent. By using direct sourcing to complement an existing supply chain strategy, many organizations have been able to future-proof access to skilled talent by building an engaged and loyal talent pipeline of flexible workers, who know and value the employer brand and its associated value proposition. Organizations benefit from this model via reduced costs and reductions in time to hire, but also in terms of improved quality of hire, often resulting in increased productivity.

Yet, for some businesses, switching to a direct sourcing talent strategy can be a daunting, costly and perhaps time-consuming process. Organizations with a managed service provider (MSP) already in place, however, can utilize their MSP to help develop the infrastructure, workflows and technology needed to quickly develop a branded talent pool that can provide rapid access to high-quality talent and a more productive contingent workforce.

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To be clear, this is not to say that a direct sourcing model will preclude relationships with  third-party suppliers. In fact, when you implement direct sourcing through your MSP, your partner can ensure your contingent talent needs are met, either through a direct, branded channel or through a highly vetted vendor-neutral supply chain. It’s important to note, however, that your direct sourcing MSP partner won’t place qualified talent in other hiring organizations the way that a third-party supplier might.

A key advantage in having an MSP partner is the ability to cultivate a comprehensive candidate care strategy that delivers a personalized experience for every potential candidate. Via direct sourcing, an MSP team should serve as both a supplier and an extension of your business. This can be achieved through a combination of technology — such as automated marketing and onboarding and AI-powered job matching —in conjunction with input from experienced marketing and recruiting experts to ensure that candidates have a positive talent experience and are fully engaged with your brand at all times.

Furthermore, with the increased utilization of contingent workforces, organizations can ensure that the recruitment process for their permanent workforce is better mirrored in their contingent workforce, resulting in a higher predictability of quality of hire. Direct sourcing is again a great way to achieve this with the right combination of people, process and technology. Ultimately, direct sourcing via your MSP provider creates a closer, more talent-centric relationship between your business and the people you rely on to get work done.

But you may be asking, what is the impact of direct sourcing on my talent supply chain? You may be concerned about how creating a branded talent pool of flexible workers will impact costs and affect budget and overall spend.

Keep an eye out for Part 2 of this series, where I’ll examine how you can realize greater cost savings and cost avoidance through direct contingent recruitment relationships.

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