In an Uncertain Labor Environment, Direct Sourcing Holds the Key to Success

?Are you at Staffing Industry Analysts CWS this week in Dallas? Stop by and say hi at Booth 132, or send us a note to meet up during Collaboration in the Gig Economy later in the week.

In today’s challenging labor environment, it has become critical for companies to optimize their workforce to stay on track of their business objectives. Workforce optimization enables companies to efficiently and rapidly allocate talents—regardless of status—to projects and tasks needed to sustain smooth operations and maximize business gains. One key component of an optimized workforce is the integration of readily deployable independent talents into an organization’s labor mix. However, identifying and hiring these professionals is no easy feat. Nonetheless, direct sourcing is the best way to recruit independent talent.

?Simply put, direct sourcing involves identifying vetted candidates for an open project or role using their internal resources rather than a third party to find talent on their behalf.

In our new groundbreaking report with Staffing Industry Analysts (SIA) titled “ Unleashing the Power of Direct Sourcing, ” we highlighted the benefits of direct sourcing to enterprises. These include:?

●????? Cost savings from managing direct and indirect labor costs

●????? New applications of talent resulting in more successful projects

●????? Dynamic workforce composition that meets changing business conditions

●????? Mindset shift among managers leading to better-informed decisions that match available talent and business goals

●????? Reduced exposure and increased compliance with global employment and tax laws

The findings of the report could not be timelier. Despite rumbles of economic uncertainty and layoffs, job openings continue to outnumber the unemployed, and talent shortages remain a pressing issue for enterprise leaders. ?

Talent shortages cause enterprise loss – in market share, hard revenue, and even in their employee tenure, as overworked employees are likely to become dissatisfied and seek employment elsewhere. Conversely, companies with effective talent management are six times more likely to report higher total returns to shareholders (TRS) than competitors, according to a recent McKinsey study .

Aside from unrealized profits, stiff competition awaits those who fall behind in the emerging trend of independent talent sourcing. Most corporations have also relied on independent contractors for the past few years, and two-thirds of them (67%) plan on increasing their reliance on contingent labor even more over the next five years.

Now is the time to start considering talented and flexible independent contractors. In an uncertain environment, contingent labor can help develop significant business and competitive advantages.

As our CEO, Miles Everson, has pointed out: “Why limit yourself to just 25% of the available workforce when there’s a human capital scarcity problem and companies are struggling to hit investor returns?”

Trending Topics:

●????? According to a BBC article , several companies remain steadfast in their commitment to remote work setups, citing access to deeper talent pools, improved results, and increased employee engagement.

●????? While many corporate leaders want workers to return to the office, Salesforce , an American cloud-based software company, aims to balance in-person and remote work. Company CEO Marc Benioff believes this approach helps boost employee productivity.

●????? A Fast Company article reveals that Gen Z and Millennial employees might quit next year due to contrasting preferences in salary, work setup, and the use of generative AI. The article's author suggests that this challenge presents an opportunity for organizations to create a people-centric, adaptable, and strong workplace culture.

●????? According to Forbes , employers face resistance when returning employees to the office after years of remote work, leading to increased attrition and recruitment challenges. To remedy this situation, the author advises firms to enact flexible hours, listen to employee feedback, and stay adaptable to the changing needs of the employees.

●????? According to a Financial Times article , the Hybrid Work Commission's recent findings reveal that three-quarters of hybrid workers see improved work-life balance. Additionally, the study showed that 70% of individuals with children under 18 reported that hybrid work made it easier to manage their work responsibilities.