whitepapers, case studies and more

MSP 4.0: FROM CONTINGENT WORKFORCE MANAGEMENT TO CONTINGENT TALENT EMPOWERMENT 11 www.everestgrp.com | EGR - 2021 - 25 - V - 4434 Direct sourcing - led The contingent talent acquisition model is set for a dramatic transformation, especially in the US, as the traditional model of heavy reliance on staffing suppliers is being upended by direct sourcing. Direct sourcing is also known by various other names (such as contingent RPO) and may take various shapes in different organizations. However, in the simplest of terms, direct sourcing is leveraging the employer brand to acquire talent directly into the organization (often through the creation of talent pools) instead of leveraging staffing suppliers. It is not a new concept, having been used extensively across the globe. However, in the US, direct sourcing has traditionally been uncommon, with most contingent workers sourced through staffing suppliers. Even in an outsourced MSP construct, the MSP's role has been more focused on managing various staffing suppliers than in helping the enterprise source talent directly by leveraging the enterprise's brand name. In the post - COVID world, that norm is set to change as direct sourcing of contingent workers takes center stage and emerges as the preferred sourcing channel (in addition to the traditional staffing supply chain for niche and difficult - to - fill roles). And MSPs can, and will, play a big role in the new reality. MSPs can help formulate the employer brand and leverage that brand to attract talent and curate talent pools for direct sourcing from a diverse set of sources such as retirees and alumni, and online talent platforms/marketplaces/FMSs, and in principle borrow best practices on talent pooling from the permanent recruitment world. A natural corollary is to share common talent pools for the entire organization irrespective of the nature of the potential contractual engagement (permanent/contingent) with the candidate. This alignment between the permanent and contingent talent acquisition can be the first step to more holistic and strategic workforce planning and total talent management. Direct sourcing introduces multiple benefits. For example, cost savings, in terms of lower markups, is one key benefit and a big and immediate trigger to move toward direct sourcing in a post pandemic recessionary environment. In addition, direct sourcing introduces multiple other benefits in the long run as Exhibit 9 illustrates. EXHIBIT 9 Benefits of direct sourcing Source: Everest Group (2021) Cost reduction R educed reliance on third party suppliers Less time to fill Improvement in talent quality Alignment to broader workforce strategy Helps enterprises save money by providing readily available talent at lower costs (lower markups) Reduces reliance on a vast array of staffing suppliers, thereby reducing the supplier management effort Helps reduce time to fill by leveraging a pre - vetted talent pool that helps source skilled candidates quickly Helps acquire higher quality talent through a pre - vetted talent pool with lower cost and time pressures Common pools with the permanent workforce opens doors for total talent management including better workforce planning

• Cover