It’s no secret that the increased usage of contingent talent is changing the face of the world of work. However, accessing and attracting the right contingent talent isn’t always easy. Enter Direct Sourcing – a robust, dynamic, and future-proof solution to address these looming talent needs, helping organizations proactively identify potential hires and attract top talent by leveraging their unique brand and culture.
As organizations adapt to the ever-changing landscape of the contingent workforce, guidance is essential for successful implementation of a Direct Sourcing program. Recently, as Vice President of Direct Sourcing and Strategic Talent Acquisition Resources at Atrium, I had the privilege of joining a webinar with fellow industry experts to explore the curation and management of Direct Sourcing programs. Drawing on over 25 years of experience in Talent Acquisition, spanning executive search firms and global TA leadership for Fortune 500 companies, I shared insights into Direct Sourcing best practices and program structures.
In case you missed it, here are my key highlights from the session:
1. Primary Functions and Roles of a Direct Sourcing Curation Team
A Direct Sourcing curation team ensures the successful recruitment and engagement of contingent talent. The effectiveness of a Direct Sourcing program depends on defining the functions within this team, such as:
- Talent Pooling: Organize potential candidates into specific groups based on job-related parameters such as skills, experience, expertise, vocation, and function. By segmenting and organizing talent pools in this way, the curation team can effectively target communications, quickly respond to job requisitions, and identify suitable candidates.
- Recruitment Marketing: Create and distribute content that attracts and retains top talent, keeping candidates engaged within the talent community.
- Candidate Engagement: Maintain ongoing, personalized interactions with candidates using a “What’s in it for me?” (WIIFM) approach to keep them engaged, motivated, and prepared for the right opportunities.
- Branding Management: Showcase a company’s culture, values, and opportunities, leveraging the appeal of the employer brand to potential candidates.
In addition to the curation team functions, the success of a Direct Sourcing program depends on the individuals who “make the magic happen.” While the six roles listed below represent the most common, organizations should tailor these roles to meet the specific needs of their Direct Sourcing program:
- Curators and Engagement Specialists: Identify and engage with potential candidates and maintain talent pools.
- Talent Acquisition Specialists/Recruitment Experts: Source and recruit candidates from talent pools, collaborate with hiring managers to align sourcing strategies with job requirements, and ensure successful matches.
- Recruitment Marketing/Employer Branding Specialists: Promote the employer brand, company culture, and benefits to attract top talent.
- Data Analysts/Recruitment Operations Personnel: Monitor program performance, analyze recruitment data, and offer insights and recommendations to ensure the talent pool aligns with the organization’s needs.
- Technology Specialists: Ensure seamless integration of Direct Sourcing technology platforms with HR systems, maintain user-friendliness for candidates and hiring managers, and enhance the candidate experience.
- Program Managers/Program Ambassadors: Manage workflow to ensure smooth operation throughout the program, collaborate closely with others to ensure effective integration with the corporation, and manage customer relationships.
2. Direct Sourcing vs. Contingent RPO
An important takeaway from the webinar is the discussion around describing curation as Contingent RPO, which some consider “debatable.” While Direct Sourcing and Contingent Recruitment Process Outsourcing (RPO) share similarities – such as efficient sourcing and management of contingent talent, flexibility in hiring, scalable workforce solutions, and cost-efficient “pay-as-you-go” arrangements – there are five distinct differences between the two approaches:
- Scope of Services: Contingent RPO typically outsources the entire recruitment process, including sourcing, screening, interviewing, and onboarding, all managed by an external RPO. In contrast, Direct Sourcing focuses on building a private, custom talent pool for specific roles.
- Approach and Focus: Direct Sourcing is more partner-driven, functioning as an extension of the internal brand, whereas RPO relies on external recruitment methods and tools.
- Sources: Direct Sourcing utilizes a company’s existing talent pool, including silver medalists, retirees, and people already known to the organization, while RPO focuses on finding entirely “new talent.”
- Branding: Direct Sourcing leverages a company’s brand, whereas RPO does not lean into the brand to the same degree.
- Control and Management: With Direct Sourcing, organizations retain more control over the recruitment process, including the ability to redeploy talent, proactively manage talent pools, and improve the quality of hires from these talent pools. With Contingent RPO, organizations often hand over the recruitment process to an external provider, along with a significant amount of control.
3. Leveraging Technology and People for Direct Sourcing Program Success
A third point from the session is that while technology is an important piece of Direct Sourcing, it’s not enough on its own. Human involvement is necessary to bring a Direct Sourcing program to life, offering discernment, valuable input, and interactions with clients and hiring managers. Organizations can create a balanced approach to support an efficient and scalable Direct Sourcing program by combining technology and people.
4. A Hybrid Approach to Direct Sourcing: Aligning Talent Acquisition and Procurement
A final and valuable takeaway from the webinar is that a hybrid ownership approach between TA and Procurement typically achieves the best Direct Sourcing program results. TA provides expertise in recruitment, branding, and strategic alignment, while procurement provides expertise in cost control, risk mitigation, compliance, and vendor management. Many organizations now place their contingent workforce under TA, viewing it as a holistic way to manage organizational talent due to TA’s integration and support in the overall workforce strategies rather than focusing on cost. Successful Direct Sourcing programs often have strong ownership and leadership from TA, and this partnership is essential for program success.
Maximize Talent Curation with a Direct Sourcing Program
A Direct Sourcing program requires careful consideration of your organization’s goals, resources, and priorities. To successfully build a Direct Sourcing program that meets your contingent workforce needs, it’s important to understand a curation team’s primary functions and roles, recognize the differences between Direct Sourcing and Contingent RPO, leverage technology and human interaction, and combine TA and Procurement efforts.
Ready to take the next step? With thirty years of experience in Talent Solutions and Extended Workforce Management, Atrium’s team of experts is here to guide you through the process and can help you build a successful Direct Sourcing program. I’d love to connect, so book a meeting with me here to continue the conversation.
