Self-Sourcing External Workers

Historically, companies have tended to outsource functions that aren't integral to their core business offerings – including the task of finding and hiring their external workforce. However, in recent years we’ve seen a shift, as a growing number of companies make the decision to “self-source” their flexible labor. TalentNet describes self-sourcing as, “A strategy to drive additional spend savings and spend efficiency while providing increased visibility into the available talent pool.” As a solution provider in the external workforce space, we’ve partnered with many of our customers to help establish, implement and continuously enhance their sourcing strategies.

Let’s take a look at an example. 

In a recent article I wrote for Recruiting Trends, I highlighted our work with leading transportation company, Navistar. Faced with the challenge of filling key roles at a time of historically low unemployment, Navistar conducted a project to expand the role of its in-house recruitment team to include sourcing contingent workers. Setting up their in-house recruiting team in the SAP Fieldglass Vendor Management System (VMS) as though it was any other staffing supplier, they were able to hold the team to the same metrics as their external suppliers, while also taking advantage of their ability to identify a cultural fit. 

Ultimately, the move saved the company millions in external workforce costs, reduced cost per hire by nearly 50 percent and streamlined the process of working with staffing vendors.

As its flexible labor becomes a more important, strategic and integral part of the business, Navistar’s story provides a glimpse into a future in which companies take back certain functions to gain a competitive advantage. Leveraging internal recruiting resources to source contingent labor as well as full-time employees helps organizations gain insight into the total talent picture, while also driving key efficiencies and cost savings.