Candidate engagement and cost savings with direct sourcing
Decreasing costs while increasing candidate engagement
Our customer, one of the world's largest custodian banks, consistently relied on expensive suppliers to fill UK roles. As costs and time to fill continued to rise, we demonstrated the benefits of a direct sourcing solution. This approach not only increased fill rates but also reduced staffing margins significantly. By engaging closely with candidates through our direct sourcing strategy, we built trust and loyalty, ultimately saving our client substantial costs.
Explaining the benefits of a direct sourcing model
Our customer's business operations were complex and segmented. This posed challenges in aligning talent strategies among stakeholders. Despite good supplier performance and longstanding relationships, costs remained high.
To achieve cost savings goals, we aimed to optimise the supply base by challenging conventional approaches. We needed to demonstrate that our curated direct sourcing solution could outperform existing models, delivering significant cost savings alongside improved candidate engagement.
Deploying direct sourcing for quick access to top candidates
After extensive consultation across segments, we launched our direct sourcing solution-a branded talent community of vetted candidates, saving time and costs.
We deployed a team of four onsite FTEs, six sourcers, two background screeners and dedicated customer care specialists. Initially, they targeted easy-to-fill type roles and collaborated with hiring managers to gain trust.
The team focused on quick turnaround of quality candidates by leveraging the direct sourcing channel on roles we knew we could quickly fill. To the delight of hiring managers, they had plenty of qualified and shortlisted candidates ready to start.
What are the benefits of direct sourcing in contingent workforce management?
Adding our direct sourcing arm to the existing MSP had many additional benefits for the customer, including:
- Access to untapped talent
- Cost savings with lower margins than traditional suppliers
- Fast hiring through familiar talent communities
- Enhanced candidate engagement for improved retention
Ultimately, we minimised the need for many third-party suppliers and used our branded talent community to identify and onboard contingent resources much quicker than traditional staffing suppliers.
The customer was thrilled with the cost savings and quicker fill rates through direct contingent relationships. Also, the flexible model allowed them to retain their critical talent suppliers but also have the option to source directly, which saved on supplier mark-up costs.
Over time, customer confidence continued to increase as more requisitions were being filled through the direct sourcing arm for more challenging senior/niche roles.
Improved candidate engagement and $500,000 savings per year
Initially, we filled 40% of all roles that would have been released to supplier partners. This saved our customer nearly $200,000 in agency mark-up costs in the first year of direct sourcing.
In high volumes areas of the business, on average, the release to offer was three to four days quicker, with 40% fewer CVs submitted per offer, three compared to five previously. Five years into the enhanced programme, we consistently save the bank over $500,000 yearly in agency fees.
As for non-finance-related benefits, our approach not only accelerated role fulfillment but also ensured better matches through close collaboration with managers. This strategy effectively built a talent pipeline to meet future demands. Engaged candidates tend to stay longer, contributing to stability and continuity within the organisation.