What Are The Benefits of Direct Sourcing

Growth in a company is dependent on headcount, and companies must proactively search for the best professional talent who can steer the business towards scalable growth. Oftentimes, growth targets are aggressive and sales quotas are extremely high. It’s why product developers are so important for brands; without an enviable product to sell, there is no growth.

Experienced and capable product developers are a rare find. There are many coders who specialize in certain aspects of product development, but connecting with the most skilled developers who can transform your product into an industry leader and differentiator are like finding diamonds in the rough…if you use traditional talent recruitment strategies.

Many brands are turning to direct sourcing recruiting strategies to forge connections with those hidden experts in the industry. Using technology, these companies can forgo hiring third-party recruitment or staffing firms in favor of using a talent management tool that can identify the most qualified candidates and build their workforce.

What is direct sourcing?

First of all, what is direct sourcing? In its most straightforward description, direct sourcing describes when companies search, qualify, and recruit their own talent rather than rely on third-party recruiters.

Direct sourcing recruitment is gaining popularity with many companies, especially those in the healthcare, customer service and technology sectors. It can be a boon for hiring managers, who can use their own networks and the networks of their colleagues to identify independent talent that could be a great fit for the job. They can also use talent management solutions to expand the search beyond local markets and connect with global professional developers, and mnay other types of talent, to further scale the size and scope of the team.

What are the benefits of direct sourcing?

At a high level, the key benefits of direct sourcing are the ability to retain control of the hiring process, speed up candidate qualification, and dedicate more time and resources towards big picture business objectives. But there are specific benefits that are worth diving into greater detail.

Increase candidate quality

One of the main benefits of direct sourcing is the ability to control the type of candidate who qualifies for an interview. Over 90% of global professionals want to hear from companies or recruiters about potential new openings. However, they often struggle to understand the requirements of the role and what it’s like to work with the company, especially if the candidacy is managed by a third-party recruitment firm.

Direct sourcing allows your in-house hiring managers to handle those questions or concerns from qualified candidates to give them a better sense of what to expect if they come aboard your organization. This helps you forge deeper relationships with promising candidates that can either become immediate hires or people to keep on retainer for future needs.

Create a private talent community

Sometimes, those candidates who are a great fit can be brought into your organization at a later date. For that reason, direct sourcing enables you to maintain ongoing relationships with those developers through the use of private talent clouds.

You can use a talent management platform like High5 to create dedicated talent clouds. High5 Talent Clouds are powered by AI software and overseen by subject matter experts to help your in-house recruiters accelerate talent acquisition to produce extremely efficient results. We also build your private talent clouds by managing known talent, capturing your existing 1099s, and ensuring your interns, retirees, and top performers are engaged until the next project.

Direct sourcing is more cost-efficient

Nearly 75% of employers admit to hiring the wrong person for a position, and those mistakes can cost up to $15,000 per wrong hire. While you can never guarantee that every new hire will be the right fit for the job, you do want to minimize the cost of making those errors in judgment.

Using direct sourcing as a strategy, you can establish a careful screening process to weed out the less qualified candidates and ensure only developers with the skills, experience, and personality to best support your organization move forward towards an interview. This will help you control the quality of candidates and reduce the chances of making a hiring mistake.

Improved efficiencies and faster time-to-fill

Time-to-fill is one of the metrics that hiring managers use to analyze their job performance. It’s also a data point that helps promote future job openings; if people love to join your company as quickly as possible, it makes selling the vision of your culture and your dreams much easier to new potential hires.

Direct sourcing is a more efficient way to speed up the hiring process. Platforms like High5 have proven methodologies to scout and evaluate professional talent, thereby helping hiring managers achieve their own quotas with more precision. In turn, they can shift more time and energy to focusing on the big picture of how to further grow the size of the company.

How to scale direct sourcing and grow your business

The talent management lifecycle is a multi-step process. From attracting new candidates to making the job offer; onto onboarding, training, performance management, and even succession planning, it has many stages and even more moving parts.

You can streamline the entire talent management process by using High5 Talent Clouds to execute your hiring strategy. Leadership can quickly view private talent clouds and sign off on a new hire to ensure hiring managers hit their quotas and high-valued candidates can quickly come aboard. You can use your talent cloud to set the right search parameters and connect with candidates who have the required skill sets to produce amazing results for your company.

Talent clouds also improve internal dialogue to keep all required parties abreast of the status of new and upcoming hires. Additionally, you can quickly view key metrics and reporting around the time-to-fill ratio, the pool of available candidates, and even on the success rate of full or part-time hires vs. contract or freelance candidates. This data will then help further shape and solidify your hiring strategy as new growth plans are developed by the company.

Are You Ready For The High5 Experience?

Our team of industry leaders are ready to help your talent management program become the best it can be. Contact High5, your transformative talent management partner and make your next new hire the best decision you ever made.

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