Why Companies Should Rethink their Sourcing Strategy by Madeline Laurano

Companies focused heavily on sourcing over the past year – by either building out internal expertise, outsourcing sourcing activities, or leveraging world-class technology. One in three enterprise companies have an internal sourcing team responsible for finding candidates and for 60% of those companies, communication skills are the most important competency.

Companies need support as remote recruitment, changing labor conditions, and competition for talent has made a challenging process even more complex. Yet, many sourcing strategies fail to deliver results.

Sourcing faces several obstacles

- Dissatisfaction with sourcing strategies

Seventy-five percent (75%) of companies are not happy with their sourcing strategy.

- Lack of ROI

Sixty-five percent (65%) of companies don’t measure the ROI of their sourcing investments.

- Too many sourcing tools

One in three companies use more than five sourcing tools.

The state of sourcing

This reality has created a state of sourcing that is reactive, filled with bias, and is often times, ineffective. As companies look at strategic sourcing for 2023, below are a few strategies they should consider:

Sourcing diverse candidates

Companies rely on the same job boards, job aggregators, and sourcing channels to find candidates without thinking more broadly about diversity. Additionally, many companies are not tracking the sources of hire to know where they are finding more diverse candidates. Companies must carefully track their sources of hire and invest in the solutions that have deep domain expertise in sourcing diverse talent.

Identifying passive candidates

Organizations often wait for candidates to find their career site or job postings without proactively engaging passive talent and building pipelines for the future. Effective sourcing strategies include active outreach to candidates and engagement in order to build talent pipelines.

Looking outside of the ATS/CRM

Search is the main point of frustration with many ATS and CRM systems. Search is limited to keywords and many candidates have incomplete or outdated profiles. Aptitude Research found that recruiters spend over 10 hours a week, on average, looking for candidates in their given ATS. Sourcing providers help companies look at both candidates in existing systems and proactively source external talent as well.

Leveraging expertise

The best sourcing solutions offer both technology and services. Sourcing is an art and science that requires tools as well as expert sourcers who can help find and engage talent. When evaluating providers, it is important to look beyond product capabilities and evaluate the expertise and services as well.

Despite these challenges, one in two companies are increasing their investment in sourcing. They are rethinking their strategies and technology to focus on a more effective process.

Author: Madeline Laurano, Founder & Chief Analyst for Aptititude Research

Aptitude Research is a leading human capital management (HCM) research and advisory firm based in Boston. Our in-depth research and vendor assessments help HR leaders develop a deep understanding of the HCM technology landscape, including talent acquisition and engagement, to ultimately make better purchase decisions.

Relode is a technology platform built to solve today's modern hiring challenges. We believe transformation happens when purpose-built tech meets intentional human connection.

Schedule a demo now to see how Relode will simplify and expedite your hiring. You can also check out these employer success stories to learn more about how Relode is transforming hiring outcomes.