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Writer's pictureVaishnavee Gonnade

The Potential of Contract Sourcing and the Unseen Passive Talent



In the vast sea of talent acquisition, the iceberg analogy perfectly encapsulates the hiring challenge. The tip of the iceberg, visible and active candidates, is just the beginning. The real substance lies beneath the surface – the passive talent pool, often unseen but brimming with untapped potential.

Recruiters spend time diving into this hidden talent, but it often takes them away from their main job – focusing on candidate interviews and assessing cultural and technical fit.

Not paying attention to passive talent means they struggle to find the right people from the active pool.

Especially when organizations are about to grow, hire a lot, or are under tight deadlines, contract sourcing, also known as outsourcing talent sourcing, just makes sense.

Here are the main reasons why this is a smart move for all organizations.


Unveiling the Cost-Effective Advantage

Let’s delve into the financial strategy that is contract sourcing. Beyond mere hiring, it’s a strategic move to trim the excess associated with in-house recruitment teams. The outcome? A streamlined, flexible cost structure that seamlessly adapts to the organization’s evolving hiring needs.


The average employer in the U.S. spends almost $5,000 per new hire. This is throughout 40 to 50 days, from distributing advertisements to going through the vetting, interviewing, and hiring process. ~ SHRM


Specialized Skills: Precision in Recruitment

In the quest for top-tier talent, contract sourcing becomes the compass pointing toward specialists. These are not your average recruiters; they are experts adept at navigating the intricate demands of specific roles. Contract sourcing ensures a precision-targeted approach, aligning human capital with the organization’s strategic objectives.


85% of the jobs that will exist in 2030 haven’t even been invented yet.

~ Institute For The Future


Global Reach: Expanding Horizons

In a world where borders fade away, contract sourcing extends the organization’s reach beyond local talent pools. It’s not just about diversity; it’s about tapping into a global talent reservoir, infusing fresh perspectives and varied skill sets into the very fabric of the organization.


The global digital talent acquisition market was valued at USD 48.95 billion in 2021 and is expected to reach USD 97.54 billion by 2029, registering a CAGR of 9.00% during the forecast period of 2022-2029. ~ Data Bridge Market Research


Time Efficiency: The Accelerator of Success

Time is of the essence, and contract sourcing serves as the accelerator. External experts, solely dedicated to talent acquisition, expedite the hiring process. This liberation allows internal teams to concentrate on steering the ship, confident that the recruitment engine is in capable hands.


Recruitment agencies can reduce recruitment time by 6.5 weeks, with most instances taking 3.5 weeks. Some say that recruitment agencies can save 110% on filling an IT position.

~ TurnerFox


Other uncountable factors that strongly count in -

1.Industry Knowledge: A Strategic Asset

Contract sourcing brings a strategic ally – individuals or agencies with a profound understanding of the industry. It’s not just about hiring; it’s about aligning human capital with the industry pulse, ensuring the organization remains a frontrunner.


2.Innovation: Redefining the Norm

Contract sourcing is not a mere nod to conventionality; it’s a nod to innovation. Armed with cutting-edge tools, external agencies redefine the recruitment landscape. It’s about staying ahead, and adopting strategies that resonate with the evolving dynamics of talent acquisition.


3.Administrative Ease: Clearing the Desk

Administrative burdens can stifle growth. Contract sourcing removes these barriers, allowing internal teams to focus on core functions. From posting job listings to initial candidate engagement, these tasks are seamlessly handled by external experts.


4.Risk Mitigation: Navigating the Compliance Maze

Hiring brings inherent risks, and contract sourcing acts as the silent guardian. External agencies navigate legal intricacies, ensuring compliance and reducing the risk of costly missteps. It’s not just about hiring; it’s about hiring right, with a vigilant eye on legal and regulatory landscapes.


5.Scalability: Flexibility at Its Core

Organizations are dynamic entities and contract sourcing offers the flexibility needed for growth. It’s not just about scaling up during periods of expansion; it’s about adapting to the ever-changing demands of the business landscape with agility and efficiency.


6.Focus on Core Competencies: Strategic Symphony

In the business symphony, every instrument plays a crucial role. Contract sourcing allows organizations to strategically orchestrate their talent acquisition. External specialists conduct the talent acquisition movement, allowing internal teams to focus on areas directly linked to the organization’s core competencies.


7.Employer Branding: Crafting a Compelling Narrative

Contract sourcing is more than recruitment; it’s about crafting a compelling employer brand. External agencies engage with passive candidates, painting a picture of the organization as a stage where careers are not just built but celebrated.


8.Continuous Improvement: Embracing Evolution

Contract sourcing embodies a culture of continuous improvement. External agencies adapt to feedback, integrate market changes, and implement best practices at a speed that’s often challenging for internal teams juggling multiple responsibilities.


Conclusion

In essence, contract sourcing isn’t just a change in how we approach talent acquisition; it’s a strategic evolution. It’s about breaking free from conventional norms, embracing innovation, and positioning human capital as the cornerstone of organizational success. In a world where adaptability is key, organizations leveraging the power of contract sourcing are poised not just to thrive but to lead in the ever-evolving landscape of business.





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