Exploring Technology Options to Support Direct Sourcing Initiatives - nextSource

In earlier blogs we discussed the emergence and benefits of direct sourcing and outlined the efforts needed to build a curated talent pool, a critical element of most direct sourcing programs. As is true with all critical change management initiatives, direct sourcing execution combines people, process and technology elements.  Since direct sourcing is technology-enabled this post will focus on the technologies and processes utilized to yield the promised savings derived from finding, attracting, and nurturing great talent; filling positions faster; and increasing operational efficiency. 

Modern innovations in HR Technology include artificial intelligence, chatbots, employer branding and advanced inbound recruitment marketing – capabilities that have been adopted by talent acquisition teams in organizations to hire regular full-time employees. However, while the advent of digital technology has changed how talent finds their next job and companies find permanent employees, development of technology supporting contingent labor programs has fallen behind. 

Technology Advancements for Managing the Extended Workforce 

• Vendor Management Systems (VMS): First introduced in the early 1990s, VMS were designed to enable procurement personnel, Managed Services Providers or Vendors on Premises  manage staffing agencies and the workers that they supply.  Initial emphasis was on generating and tracking cost savings. 
• By 2002, there were over 50 VMS solution providers. The software was now web-based, expanding access to human resources and talent acquisition personnel, customer hiring managers, VMS program office staff, and suppliers.  Over the next decade or more, product enhancements expanded VMS capabilities to also address project services teams, internally sourced personnel, and others.  
• Freelancer Management Systems (FMS): this cloud-based software appeared around 2014, providing online marketplaces for the use of freelancers and independent contractors.  These platforms are particularly popular when seeking short term “gig” assignments. 
• Direct Sourcing Platforms: Over the past five years specialized direct sourcing platforms have emerged.  These software systems enable the organization to segment its talent pool against specified criterial advertise positions and outreach to candidates through a sourcing portal, nurture candidates through continuous 2-way communication, and submit candidates for consideration.  These platforms are typically integrated with a client’s VMS system, enabling a hiring manager to use a single system for requisition creation and processing.   
• Convergence – the Future? Pioneering firms are blurring the lines between these systems through expanded functionality previously only found in a different platform type, through acquisition by ERP and HRIS firms typically dedicated to permanent employees, and through more sophisticated integration capabilities.  

The best approach for you depends on your specific requirements. Consider current and planned usage of non-employee workers, existing workforce technology investments, and internal priorities. If you choose to build your workforce management “tech stack” starting with your existing applications, verify that your incremental applications can easily be integrated. Ask each existing and potential technology provider to share their development roadmap so that you can be assured that their plans are aligned with yours. Verify that data can be captured and leveraged throughout the whole work arrangement from source to pay. A well-integrated workforce technology ecosystem enables enterprises to attract qualified talent from all sourcing channels, engage them through non-intrusive digital touchpoints like text/SMS or email, screen them faster, retain them by offering a stellar candidate experience and provide the data and insights needed to plan for the future. 

If this sounds a little more technical than you’re comfortable with, don’t fret. Ask the experts at nextSource.  They’re experienced at helping workforce management operations select the right technologies and integrating the systems to deploy the perfect tech stack to support direct sourcing.