If you’re looking to reduce costs and find top talent, a direct sourcing strategy for contingent workers may be the answer. Direct sourcing is the process of finding and hiring employees directly, without going through an agency. This can be a great way to save money, and it also allows you to find top independent talent that may not be available through traditional channels. However, implementing a direct sourcing strategy can be tricky. In this blog post, we will discuss five tips for successfully implementing a direct sourcing strategy.
Understand the Benefits of Direct Sourcing
Start by understanding what you’re looking to get out of a direct sourcing strategy. Are you looking to reduce costs? Do you want access to top quality talent? Understanding the benefits will help you better prepare your organization and ensure you get the results you’re looking for. Some of the benefits of direct sourcing including: an on demand talent pool with unique skill sets, cost savings, and increased productivity. Be sure to set the KPIs that will help you measure if you’re getting the benefits that your strategy is supposed to be supplying.
Set Up a System to Manage Your Hiring Process
Once you’ve identified the key benefits and success metrics for your direct sourcing strategy, you’ll need to set up a system to manage the hiring process. What platforms are you going to utilize for finding talent? How will you track each candidate’s progress? What are the steps you’ll take to ensure all workers are hired in a way that’s compliant? There are so many steps involved in the hiring process – even in a direct sourcing strategy. Make sure that your system is organized and clear, as this will make it easier for everyone involved. The best ways to help do this is to hire talent using a global EoR (Employer of Record). Such an approach ensures that all legal obligations regarding wages, taxes, and benefits are properly met in order to ensure a safe and compliant talent acquisition process. Unlike other outsourcing options like a PEO, an EoR assumes liabilities, serves as the legal employer, allows globalization, and more. Do not underestimate the importance of diligently navigating the compliance minefield that comes with a direct sourcing strategy, and here’s why.
Leverage Data to Make Informed Decisions About Talent Acquisition
As with any business decision, data should be used to make informed decisions about talent acquisition. Collect data on the types of skills and qualifications you’ll need for successful direct sourcing, as well as the average time it takes to fill each role. You can also use this data to analyze which sources produce the best candidates, as well as which areas you should focus your attention on (especially when it comes to DEI). The more data-driven your approach is, the better results you’ll see. Looking for easily accessible data is part of what should go into your tooling search for managing an extended workforce. Here are some of the other factors you should look into for determining the best payroll service provider for your direct sourcing strategy.
Develop an Effective Onboarding Program for New Hires
Once you’ve identified the best talent and built a hiring process that’s compliant with local regulations, it’s time to start onboarding new hires. Onboarding is an essential part of working with any freelancer, and it’s especially important for retention. SHRM writes: “69 percent of employees are more likely to stay with a company for three years if they experienced great onboarding.” The tedious paperwork involved in onboarding can be automated through your payroll service provider. For example, with Greenlight’s easy-to-use onboarding feature, you can invite them to join you with just a couple of clicks on the GreenLight app – or an API. Your workers will be ready to get to work in minutes with our intuitive, automated onboarding.
Create a Supportive Environment That Encourages Retention
We believe the Future of Work should be an equitable one. Treating your freelancers with respect and providing them with the support they need to do their best work is a key tenet of a successful direct sourcing strategy. Benefits go a long way when it comes to making your business stand out to freelancers. When you hire using GreenLight, you can compliantly onboard your freelancers in minutes and then effortlessly get them registered for perks such as professional liability insurance, 401K, and even health care. We even have partnered with Anthem Blue Cross Blue Shield to provide freelancers with health insurance that would be difficult or even impossible for them to receive on their own. Schedule a demo today and we’ll help make implementing your direct sourcing strategy safe and easy.