Direct Sourcing 101: Everything You Need to Know

Direct sourcing. In 2020’s pandemic-stricken world it’s become the buzzword de jour in global recruitment, delivering a slew of benefits to businesses adopting this talent hiring model that includes greater control, fast response times, big savings in both time and money, better results and less risk.

But is there more to the story? And is the direct sourcing model right for you?

The idea of developing your own internal candidate talent pool for hiring casual and contract workers is not new. Indeed, it makes a lot of sense. Especially as you know lot about the people you are dealing with. Conversely, they should also know a lot about your business too, and even if that’s not the case you at least have the opportunity to educate them about your employer brand.

In fact, that’s just one of the many benefits of the direct sourcing model. It puts you in control of the entire candidate hiring process, from beginning to end. It means you can offer a seamless, professional and personal candidate experience right through to onboarding that fits in perfectly with your company’s workplace culture. So the process itself becomes a part of your corporate DNA and a signature brand action in itself.

Other advantages, of course, include a reduction in recruiting time, a hassle-free process with no third party involvement, improved retention and loyalty, plus a much reduced risk of any wrong hires, which can save you plenty of money down the track.

But many businesses, particularly those operating internationally or cross-borders, are hesitant about implementing a direct sourcing strategy because of the time, expense and hassle involved in developing their own systems to manage the overall process. On top of that there are all the complexities surrounding issues such as payroll and compliance etc. For many, it just seems all too hard, and so they stay with an outsourced model that may be more expensive, more cumbersome and less likely to deliver optimum results.

So what is the best way forward for your business?

At CXC we have invested a lot of effort into developing the tools, technology and know-how to enable clients to build their own direct sourcing solution based upon ‘known talent’ –  always a better option to hiring unknown talent. Your ‘own talent pool’ might comprise  previous employees, retired employees, past contractors, trusted referrals, ‘ silver medallists’ who interviewed for previous jobs that were impressive, but didn’t quite make it back then, as well as pre-qualified contractors with the precise skillsets you require.

With a proper set up, they are all there at your fingertips and so you are able to access the right workers with the right skillsets at the right time. A corporate family. Plus you can ‘work’ the pool to reach new workers via trusted referrals. Once selected, these contractors and contingent workers might be managed and paid by an outsourced managed services provider such as CXC, thereby ensuring issues such as compliance etc., are all taken care of, but in essence the aim of the exercise is to put you in direct control of sourcing and hiring. It’s a hybrid model specially designed to give you the best of both worlds: a direct sourcing recruitment model that’s truly yours, along with a trusted partner to ensure everything works to its full potential. It’s efficient and effective, and comes with a fee-sharing arrangement that’s significantly less than the cost of traditional outsourcing.

The suite of services that CXC offers around direct sourcing are comprehensive and range from straightforward, no-obligation advice through to the supply of talent management and acquisition strategies and technologies, AI and MSP (Managed Services Provider) services, all designed to turbo-charge your recruitment processes and give you greater control. Over the past few years a number of CXC clients have been able to transition from a decentralised third party supplier-sourced approach to a low cost, streamlined, managed program where the majority of contingent talent is both sourced and engaged directly. It could work for you too.

Like to know more about CXC Direct Sourcing services? Contact us today at