Keeping up with a changing hiring market: How Direct Sourcing helps companies grow

Keeping up with a changing hiring market: How Direct Sourcing helps companies grow

The changing hiring market has changed so much in the 2020s that it’s become one of the most defining features of the decade.

From a global pandemic that inextricably altered the workplace to a world-wide skilled worker shortage, companies were faced with an ultimatum: either change your hiring strategy or fall behind.

In an effort to support their growth and survive an increasingly unstable economic outlook, many organizations created contingent worker programs and implemented Direct Sourcing strategies.

According to SIA, almost 80% of large organizations reported they already had a Direct Sourcing program in place by 2023 or planned to implement one in the next two years.

From lowering hiring costs to building streamlined processes, we take a look at how Direct Sourcing has supported companies through a changing hiring market.

Understanding an evolving hiring market

The first few years of the decade was defined by a worldwide pandemic that saw many leave the full-time work force and opt, instead, for contingent work.

According to a 2022 workforce ecosystem survey by Deloitte and MIT, up to 50% of participating businesses were composed of contingent workers.

In the midst of a turbulent economy, the market slowly shifted from an employee-led dynamic, where top talent had their choice of positions, to an employer-led market, where workers are finding less opportunities and organizations are seeing more applicants per open position.

According to Forbes, while 2025 should see fewer layoffs, some companies will opt for a hiring freeze to combat economic uncertainty. This marks an important shift in the workforce, as more businesses begin leveraging part-time and contingent workers over full-time hires.

As the hiring market continues to change, Direct Sourcing hiring strategies allow companies to:

Create engaged Talent Communities and pipelines that match needed skill sets. This supports growth and lets organizations plan for future openings
Better connect with talent using a company’s natural brand power. Organizations that leverage brand power are able to find workers who are already loyal to your brand and familiar with your company, leading to increased talent retention
Meet changing expectations, both from clients and workers. As companies integrate Direct Sourcing best practices, they’re better able to change based on the hiring market, allowing for more agility in workforce planning and deployment
Keep up with compliance and privacy laws. A trusted Direct Sourcing partner, like TalentNet, will have experience guiding companies through these regulations, allowing them to expand into different markets while minimizing legal risks.

Reducing talent acquisition spend during uncertain times

Implementing a Direct Sourcing program allows companies to save on hiring costs while maintaining a high standard of talent quality.

Companies using talent acquisition software, like TalentNet, can see a 15-20% savings on overall costs.

These cost savings are due to a number of factors, including:

A reduction in hiring costs. Organizations that are able to build and manage talent pools effectively can reduce third party hiring fees, which leads to a decrease in overall talent acquisition spend and the time it takes to hire new workers
Worker retention. Businesses using Direct Sourcing are able to re-engage former hires, leading to longer retention, faster ramp up periods and less onboarding costs
Vendor consolidation. By choosing a Direct Sourcing partnership, you’ll be able to reduce the number of third-party vendors used in your hiring strategy, leading to a more cost-effective hiring strategy

Creating a streamlined hiring process for an efficient workforce

Traditional hiring processes can get complicated. From sifting through hundreds of resumes to vetting each candidate, conducting interviews, and onboarding, the process can be time consuming and expensive.

A solid Direct Sourcing partner allows companies to streamline their processes using talent acquisition software.

TalentNet, for example, leverages AI matching capabilities to provide curators with the top candidates for each job within seconds, enabling them to quickly communicate with talent using automated email and text features, along with customizable templates.

Through its One Doorway approach, companies can connect with a variety of candidates, from full-and part-time to contract and freelance – all from one branded job site.

TalentNet’s other features include

TalentNavigator, a personal hiring AI generative partner that lets curators automate manual tasks, helping them focus on engaging with candidates. Using TalentNavigator, curators can search through their talent community, create short lists in minutes, invite candidates to apply to positions, and manage talent pools.
Its Job Description Optimization Tool, which lets curators quickly create well-written, SEO optimized job descriptions that attract top talent.
Job matching capabilities. Candidates are able to quickly apply for positions through the AI-based job matching feature, which matches talent to jobs based on their resume, allowing for a 60 second application process.

Creating a better way to hire

Direct Sourcing doesn’t just reduce hiring costs and build efficient processes. The strategy allows companies to stay ahead of changing trends and evolving hiring market expectations. As businesses continue to face an uncertain economic climate, many are turning to contingent hiring and Direct Sourcing to meet their business needs.

To see how TalentNet can support your hiring strategy, book a demo here.