The Gig Economy is old news. You've been requesting Ubers, having your groceries delivered, and hiring freelancers for years now. But for organizations, the ongoing issue is organizing and staying compliant with this increasing influx of workers, and wrapping their head around how to effectively utilize and source this important talent pool.
In comes self-sourcing and self-sourcing technology. The idea of "self-sourcing" doesn’t mean companies simply source their own workforce. New innovations in sourcing technology are completely changing how companies utilize pools of untapped talent. Think of it as another supplier, providing access to a whole other talent population. Have an MSP (Managed Services Provider)? Well, it's important to incorporate self-sourcing technology into the MSP's overall workforce management strategy too.
There will always be a need for traditional staffing methods, but agencies and MSPs have to embrace this new way of sourcing or they will lag behind in capturing this untapped talent.
Here are 3 ways that self-sourcing can complement your MSP
It's a New Supplier to an Untapped Workforce
Self-sourcing is not a traditional staffing supplier, but it's direct access via a Vendor Management System (VMS) or a Freelance Management System (FMS) to internal and external talent pools. The contingent workforce is tapping into a talent cloud that isn't always accessible by traditional staffing methods. Not all freelancers are posting their resumes on job boards. Many are getting their projects through this new freelancer-driven marketplace. Self-sourcing technology captures these marketplaces to target the niche job positions that you may have trouble finding elsewhere.
Reducing Time-To-Fill Cycle Time
With candidates opting right into these databases, using this direct sourcing method can reduce time-to-fill on freelance candidates. This is important for those unexpected projects that need to be started yesterday. With MSPs, they are able to use this as a supplier connection into this valuable talent pool. They have an added value of making sure that you the customer, quickly bring them on board, making sure you stay compliant and low-risk.
When it comes down to it, this can be a cheaper supplier option. There are no contract-to-hire staffing agency fees and self-sourced talent costs 15-20% less than staffing supplier-sourced talent. Good self-sourcing technology can use algorithms to identify who matches your niche position and eliminate those who do not. Which saves a lot of time and, as we all know, time is money.
Good MSPs keep their finger on the pulse of how new innovations bring value and know that self-sourcing and the technology that comes with it, accommodates this growing "Gig Economy". In the end, it can save you time and money. If your MSP isn't embracing and accommodating self-sourcing and its benefits, it’s a conversation that you need to have...and quickly.