Maximizing Cost Savings and Time Efficiency with Direct Sourcing: Busting Common Misconceptions - Part 2

Maximizing Cost Savings and Time Efficiency with Direct Sourcing: Busting Common Misconceptions – Part 2

There’s an easy way to tell successful companies apart from those struggling to compete.

Ask them what they consider their biggest assets to be.

Those that truly stand apart in their industries will always say their workforce. Top competitors are quick to invest in their workers above all else.

For many, this can become expensive.

Data from the Society for Human Resource Management shows that each new hire costs companies an average of $4,700. This includes factors like third-party recruiters, job posting costs, training, and candidate screenings.

While Direct Sourcing has become a popular talent acquisition strategy for a myriad of industries, many worry about the price tag. In part two of our three part series we debunk misconceptions around the cost of Direct Sourcing and explore how a strong talent acquisition platform can save both time and money.

Myth 1 – Only large enterprises can afford (and benefit from) Direct Sourcing

The idea here is that implementing a Direct Sourcing strategy with a solid technical platform and curation agency is prohibitively expensive. Some companies say they don’t have hundreds of thousands of dollars to spend on talent acquisition or enough manpower to commit to this strategy.

The reality is that they don’t need either. TalentNet, for example, doesn’t charge any implementation fees and minimum software fees are often passed on to the curator or MSP involved in the project.

Not only does Direct Sourcing complement existing technical investments like VMS partnerships, using a talent acquisition software leads to a 15% cost savings. For example, TalnetNet’s customers saw an average cost savings of $3 million last year.

Direct Sourcing is an important strategy for a variety of companies. By creating a long-term hiring process, businesses of all sizes can ensure they can fill any future openings, saving both time and money.

Myth 2 – Direct Sourcing only has one benefit – cost savings

This is the flip side of the first myth. While some companies are aware that Direct Sourcing leads to significant cost savings, the talent acquisition strategy’s other benefits are often overlooked.

Direct Sourcing allows companies to:

Keep up with the shifting market and grow effectively. By building talent pools and communities filled with qualified candidates, companies can fill open positions faster. TalentNet’s clients, for example, saw an average job fulfillment rate of 36% in 2023.
Provide a positive candidate experience. TalentNet’s TalentBench platform lets companies provide a 60 second registration and job application process, leading to happier candidates and increased retention rates.
Create a strategic talent acquisition strategy with solid best practices that allow companies more control over the hiring process.

Myth 3 – All you need to achieve cost savings is a strong tech platform

Once companies begin looking into Direct Sourcing solutions, some assume all they need is a solid technical platform. This is a reasonable expectation. After all, AI-based solutions have revolutionized the Direct Sourcing game for many organizations.

From TalentNet’s TalentNavigator platform, which acts as a hiring virtual assistant, to our Job Description Optimization feature, which allows Curators to create well-written job descriptions, it’s easy to assume tech is all you need.

While an intuitive solution is key, many overlook the human element. To achieve full cost savings, successful Direct Sourcing strategies require:

Curation agencies that understand the market and are able to connect with top talent.
A strong operations team that understands Direct Sourcing best practices and can help you gain company-wide buy-in.
A team of Direct Sourcing experts that can provide creative solutions to any hiring issues that come up.

Building a solid Direct Sourcing strategy

Proper Direct Sourcing strategies supported by an intuitive platform and team of experts lead to significant cost savings in the short and long-term.

TalentNet’s platform allows curators to effortlessly build strong talent communities, manage candidates and easily engage with top talent. To request a demo, click here.