In a market where technology evolves at breakneck speed and workforce expectations shift rapidly, the demand for skilled talent continues to outpace supply. By 2030, a global talent shortage of 85 million workers could cause $8.5 trillion in lost revenue (Korn Ferry study). For businesses, filling talent gaps isn’t just a challenge—it’s a race against time. To stay competitive, companies need innovative solutions beyond traditional hiring methods.

Direct sourcing has emerged as a solution, offering a streamlined, efficient way to build and manage a contingent workforce.

What is direct sourcing?

Staffing Industry Analysts (SIA) defines direct sourcing as a recruitment strategy where companies tap into their own brand power and existing talent pools to engage contingent workers. Instead of relying on external vendors, companies build a pipeline of pre-vetted talent—consultants, freelancers, and temporary workers—ready to be deployed as needed. This method strengthens the company’s employer brand while cutting costs and reducing time-to-fill.

Capitalizing on brand equity for enhanced contingent workforce hiring

Organizations can leverage the strength of their employer brand to attract and retain high-quality contingent workers. Direct sourcing allows businesses to tap into a pre-existing pool of talent, building stronger relationships with candidates while fostering a sense of loyalty and connection to the brand.

In recent years, organizations have embraced direct sourcing as a strategic solution to streamline talent acquisition and strengthen their contingent workforce. For instance, nearly 80% of large organizations either have a direct sourcing program in place or expect to explore the approach within the next two years.

Why choose direct sourcing?

As employers navigate an increasingly competitive market in their search for the right talent, direct sourcing offers an innovative way to capitalize on brand equity to attract top candidates. It promises to deliver the next wave of productivity gains while meeting the growing demand for a stronger external workforce.

1. Cost efficiency
   Direct sourcing significantly reduces contingent talent costs. It helps optimize long-term recruitment investments, reduces recruiting time, enhances visibility into the hiring process, and ensures compliance —ultimately driving greater cost-efficiency.
   
2. Access to pre-vetted talent
   Direct sourcing provides access to a pre-vetted, niche talent pool, ensuring high-quality candidates. It connects you to strong talent communities, customized by location, job function, and title, increasing business flexibility and enabling a fully optimized workforce.
   
3. Faster time to fill
   Direct sourcing accelerates the recruitment process and reduces the time to fill. The development of curated talent pools of pre-vetted candidates ensures skilled talent can be quickly and easily re-engaged as needed.

According to a recent SIA and MPO study, 53% of talent leaders identified cost savings as the primary benefit of direct sourcing. Additionally, 57% of respondents highlighted better access to specialized skills, while 52% reported increased hiring manager satisfaction.

Direct sourcing fosters a culture of continuous improvement, creating a virtuous cycle that benefits both enterprises and contingent workers. However, despite these multiple benefits, only 47% of organizations have progressed toward ‘mature’ direct sourcing.

Elevate your talent strategy with Pyramid Consulting’s custom direct sourcing program

Our white-labeled program leverages Hoonr, a proprietary talent pool featuring over 200K pre-vetted candidates. This enables you to create tailored talent pools that perfectly match your brand and hiring needs. Whether you’re dealing with high-volume or seasonal hiring, our solution offers a fast, cost-efficient way to attract top contingent talent, improve workforce planning, and reduce reliance on third-party suppliers. Let us simplify your hiring process and deliver substantial cost savings.

Contact Pyramid Consulting today to see how our direct sourcing program can transform your talent strategy.