Blog title V2

BLOG

 
 

Asset Publisher

null How can direct sourcing evolve with your MSP programme?

HOW CAN DIRECT SOURCING EVOLVE WITH YOUR MSP PROGRAMME?

Direct sourcing has revolutionised the way companies hire the perfect candidates for temporary and permanent roles. Data from the latest Workforce Solutions Buyers Survey from Staffing Industry Analysts shows:
 
 
You are probably already using direct sourcing internally already. But how can direct communication with candidates support and enhance your managed programmes?
 

Defining direct sourcing

Direct sourcing, or 'self-sourcing,' is when a company uses its employer brand to build a proprietary candidate pool. The pool may include:
 
  • Current and former contractors.
  • Former employees. Retirees.
  • “Silver medallist” candidates for FTE roles.
  • Freelancers.
 
By applying direct sourcing methods, a company can then attract and engage these contract workers directly. Doing so avoids the need to create requisitions for staffing companies or third-party labour suppliers.
 

Reaping the benefits of managed direct sourcing

The benefits of direct sourcing are numerous:
 
  • Significant 'hard' savings from lower margins due to hiring volumes and the exclusivity of the process.
  • 'Soft' savings, which come from a shorter time to hire and faster time to productivity.
  • Better employer branding.
  • Smoother onboarding.
  • More efficient candidate pooling for contingent and full-time roles.
 
Within an existing managed service provider programme, direct sourcing usually applies to certain teams or functions with unique characteristics. The best contingent direct sourcing opportunities are in areas with high hiring volume and geographic concentration. These opportunities also have consistent job descriptions and candidate requirements.
 
Internal recruiters and hiring managers may be best placed to manage recruitment for this department. Alternatively, a third-party team - such as Enterprise Solutions at Hays - could help you to find the right candidate.
 

How MSP direct sourcing works

Imagine a hypothetical company that has a Managed Service Provider (MSP) managing all temporary/contract workers. Your supplier handles sourcing, onboarding and payroll for those workers. The exception is a call centre with 100 contractors. An internal team sources these workers, but a third-party sourcing partner still manages their payroll.
 
A real-life example of this would be our partnership with Computacenter. This large IT services provider draws over $4 billion in annual revenue. They were recruiting for their Global Service Desk. The Hays team was responsible for all of the assessments and initial meetings. Then, a central coordinator reviewed the recommendations that Hays made and provided an offer to the right candidates.
 
Using this method, the team recruited 64 analysts in the space of four weeks: 11 full-time and 53 contractors. Other major success factors for this project approach included:
 
  • The time to hire decreased by 11 days.
  • Attrition reduced by 20 percent compared to their historical approach.
 

An organic evolution of direct sourcing in MSP

Phase 1: Outsourcing payroll
 
In most cases, the use of a direct sourcing strategy evolves as your managed programme becomes more sophisticated. Initially, your recruitment team may drive direct sourcing internally for specific roles. Your programme partner might then handle the payments.
 
Phase 2: Managing recruitment in-house and onboarding externally
 
As the programme matures, you and your programme partner will explore new ways to optimise your collaborative processes. This optimisation process will include some level of direct sourcing.
 
This hybrid approach enables your team to manage the elements you choose in-house. Meanwhile, your partner provider still manages processes like compliance checks, onboarding and payrolling.
 
Outsourcing these steps of the process can improve efficiency and ensure compliance.
 
Phase 3: Outsourcing your full direct sourcing approach
 
Eventually, once you establish those processes, your MSP may start to manage the direct sourcing solution too. A dedicated, expert team sits within the already-existing programme, opening the door for scale and efficiency.
 
This approach gives you the best of both worlds. It combines the compliance and consistency of a managed programme with the savings and added efficiency of sourcing candidates directly.
 
Phase 4: Expanding your MSP
 
As the success of this partnership grows, direct sourcing in MSP will continue to evolve. You will likely find other teams or functions where direct sourcing makes sense. In turn, working more closely with your MSP provider will:
 
  • Expand cost-savings to new teams.
  • Provide access to top talent.
  • Improve efficiencies to other areas of the business.
 
By building your employer reputation and expediting your internal processes in tandem, you can set your team up for long-term success. If you’re unsure of the right recruitment strategy for your team, speak to a member of our Enterprise Solutions team.
 

Learn more about direct sourcing and working with MSPs

 

AUTHOR


Lenneke Dijkhuis
Head of Enterprise Solutions (Asia) 
With 20 years of experience in the recruitment industry, Lenneke Heads up our Enterprise Solutions business in Asia. Her geographical purview encompasses South-East Asia (Singapore, Malaysia and Thailand), Japan, China and Hong Kong. Lenneke is an active sponsor of the DE&I committee in Hays Asia.

Prior to joining Hays she spearheaded a HR Tech start-up in Southeast Asia for 2 years. In Europe, her professional journey was rooted in a leading global recruitment company in which she progressed through various management roles.