Direct sourcing is a value-add service of an MSP provider that expands its customer’s contingent labor supply by leveraging their employment brand. It's predicted that in 2023, worker demand will continue to outpace labor supply, and organizations will struggle to find talent. On top of this, economic uncertainty is making flexibility in total talent strategy increasingly more critical. To combat this, since pre-pandemic, companies have grown their contingent workforces by over 50 percent to help bridge their talent gaps, provide greater flexibility, and optimize their workforce. However, only 39 percent are using direct sourcing to find contingent labor candidates. Learn more at https://resources.rpoassociation.org/webinar-what-the-future-holds-for-direct-sourcing-and-contingent-labor

1. 1
What the Future
Holds for Direct
Sourcing and
Contingent Labor
May 16, 2023

2. 2
2
Introduction
• Jason Krumwiede serves as Executive Vice President of
Broadleaf. Jason joined Broadleaf in September of 2019—
part of the TalentRise acquisition—as the Senior Vice
President of Client Delivery. He has worked for various HR
professional services and recruiting organizations including
Aon Hewitt and Deloitte.
• With 20+ years of recruiting, management consulting, and
outsourcing industry expertise, Jason has been instrumental
in the growth of Broadleaf’s total talent businesses.
• Jason currently serves on the Advisory Broad for
Recruitment Process Outsourcing Association (RPOA).

3. 3
3
What does the future hold for direct sourcing?

4. 4
Permanent
staff
50%
Workforce of Typical Organization
4
Independent
contractors
10%
Contingent
labor
30%
Statement of
Work
10%

5. 5
5
Managed Service Programs (MSP)
Technology Solutions
(ATS / CRM / VMS)
Recruitment Process Outsourcing (RPO)
Employer of Record (Payrolling Services)
Independent Contractor
SOW and Procurement
Management
Total Talent Management Spectrum
Direct Sourcing
© 2023 Broadleaf Results, Inc.

6. 6
6
• Since pre-pandemic, companies have grown their
contingent workforces by over 50% to help bridge
their talent gaps, provide greater flexibility, and
optimize their workforce.
• According to Staffing Industry Analysts (SIA), 62% of
enterprise organizations that use contingent
workers have either implemented some form of a
direct sourcing program or plan to in the near
future as part of their MSP or insourced programs.
Trends

7. 7
7
Direct sourcing is a value-add service of an MSP
provider or organization's insourced team. By
leveraging their data and employment brand to
attract candidates, direct sourcing expands the
contingent labor supply.
Current Definition

8. 8
8
Benefits of Direct Sourcing
Copyright © 2022 Broadleaf Results, Inc.
Cost savings: MSP can payroll
referred candidates at a lower
markup than staffing suppliers
Quality: Segmented and robust
talent communities curated for
specific locations, job functions,
and/or job titles
Cycle times: Accelerated
recruitment process provides
greater efficiencies and
shortened cycle times
Experience: Use of AI helps drive
efficiency and engagement, two-
way text messaging provides
instant communication

9. 9
9
Direct Sourcing Types
Category Definition Type AKA
Talent acquisition, RPO,
or search firm
Recruiters and sourcers
outreach directly to passive
candidates on LinkedIn or
Indeed to compliment
advertising
Permanent hire
Sourcing, headhunting,
passive search, name
generation, CRM, talent
community or network
Staffing firm
Recruiters focused on
contingent labor job order
fulfillment
Contingent worker
Sourcing, headhunting,
passive search, talent
community or network
MSP or insourced team
Expands contingent labor
supply by leveraging the
employer brand and tech
Contingent worker
Direct fulfillment, contingent
RPO, RPO for contingent

10. 10
Case Study – Retiree Skills Gap
10
Results
Solution
Situation
• Company: Advanced manufacturer of
aircraft, space and defense, industrial,
and medical devices
• The Problem: A significant spike in
employees retiring due early
retirement offer
• The Effect: Created a serious skills gap
between retirees leaving the
organization and new employees not
fully trained up
• Bridged the experience and
productivity gap by Direct Sourcing
from alumni pools/retirees for
temporary placement
• Segmented, conducted outreach and
assessed retirees in lock step with HR
• Supported manager communication
plan and how to engage within MSP
program
• Implemented a streamlined selection
and onboarding workflow
• 290 skilled candidates sourced and
interested
• Payrolled 30+ productive contingent
workers
• Streamlined onboarding process
bottlenecks
• Reduced turnover, increased
contractor productivity, and limiting
OT hours

11. 11
11
Direct Sourcing Maturity Curve

12. 12
12
1. Run on robust CRM platform
2. Engaged, opt-in talent community
3. Segmented
4. Curate
5. Push relevant jobs via text to community
6. Recruit!
Direct Sourcing – MSP

13. 13
13
• Data capture
• Employment brand
• Technology
• Significant growth
Future Adoption of Direct Sourcing

14. 14
Thank you!
14