height should be 375px for mobile

Lee Willoughby



How to Implement Direct Sourcing (The Foundation)

Welcome to my #2 newsletter

Over the past few weeks, I've worked with several companies to unpack the impact of Direct Sourcing technology.

Here's the simplest version of the results:


Company A, has $20M in contingent spend


If Company A would hire 15% of their contingent workers through their internal talent pool


They would recapture $1.28 million in costs.


Mind-blowing, right? But wait, there's more.


A Managed Service Provider (MSP) suggested it's smarter to work with preferred suppliers, arguing that Direct Sourcing could be a substantial investment in resources and time.🀯


But guess what, it’s time to let go of that old mindset and step into the new world of hiring.


In today's newsletter, we're unpacking the four key steps essential for the successful implementation of Direct Sourcing.


So, let's get some context and get this show on the road.


Cup of coffee ready? Let's dive in!



My first encounter with Direct Sourcing πŸ‘¦πŸΌ


When I was a 10-year-old boy, I used to jump on my bike and ride home from school.


It's just what we do in the Netherlands.


But first, I'd always stop at one place - my family’s company


My mum and dad were busy building our own family business. The office was always busy, full of about 35 people all working hard.


My Dad’s office was full of cool stuff. There were football shirts signed by famous players hanging on the wall. There were mini race cars and all kinds of fun little things.


But one day, I remember seeing this silly thing on my dad’s desk.


It was a weird round thing that looked like a case for Pokemon cards. I asked my dad what it was. He told me, "This is a Rolodex. It's where I keep the names and numbers of the people I work with."


I thought it sounded boring and went back to playing with the other stuff. Little did I know, that "boring" Rolodex was kind of like an early version of direct sourcing.


But things have changed a lot since then.


So Direct Sourcing today?



What is Direct Sourcing: The Game Changer


Fast forward to today, Direct Sourcing is not just about storing contacts in a Rolodex.


In the simplest terms, it’s about harnessing your own internal talent pool for contingent workforce hires


Instead of shelling out big bucks to third-party vendors or staffing agencies.


As contingent work takes over full-time employment, sourcing these flexible workers becomes a critical part of every hiring strategy.


And that’s where Direct Sourcing comes in,


leveraging technology to simplify relationship-building and empowering organizations to tap into their internal talent pool.


Unfortunately, it is not yet taking off as much as you think.




Why is Direct Sourcing Failing ? ❌


The future sounds promising, but here's the catch:


"According to Staffing Industry Analysts (SIA) upcoming market research on direct sourcing, only 16% of the 158 contingent programs surveyed strongly agree that direct sourcing is effectively implemented today,"


The prospect of saving millions and transforming cost centers into valuable assets makes Direct Sourcing sound like the Holy Grail.


But the truth is, many larger organizations struggle to implement it properly.


The reasons? 3 pain points:


1. Adaptability: Transitioning from traditional methods to direct sourcing means changing mindsets and processes. It's about building relationships and engaging with talent, which demands adaptability and change from companies.


2. Technology: In the past, Direct Sourcing technologies were either developed by service companies with little focus on tech or managed within CRM and Excel sheets. This led to siloed operations, preventing companies from experiencing the true power of Direct Sourcing.


3. The Wrong Program Manager: You’d think that MSPs and staffing companies would be the perfect partners for managing Direct Sourcing programs. But remember, they profit from staffing people, so Direct Sourcing is essentially cannibalizing their demand. This could explain why it hasn't been their priority to introduce Direct Sourcing effectively.


Although there are very progressive MSP's out there that are pro Direct Sourcing (TAPFIN, Talent Works, Atrium Works, CXC) to name a few.


The adoption of Direct Sourcing might be slow, but we are undoubtedly on the brink of its rapid rise


so stop burning money and focus.


and here’s how:



Breaking Down Direct Sourcing: The 4 Big Moves πŸš€


Alright then, it's time to lay down the building blocks for Direct Sourcing. Whether you're going at this solo or looking at this from a client's perspective (hello, MSPs),


we have to nail the Direct Sourcing essentials first. So, let's get into the four major steps that really make it tick.


1. Making a Plan: The First Big Step

Any big win starts with a great plan. The same goes for Direct Sourcing. You need to get your head in the game, start thinking ahead, and get ready for what's coming.


2. Jumpstart the Pool: Get Your People

Having a plan is cool, but it's nothing without action. You need people in your talent pool. To start, think simple. Check these boxes:


  • People you've worked with before
  • People who know your company
  • People your employees suggest
  • People from your alumni network
  • The "almost hired" from past jobs


3. Pump Up the Pool: Shine Your Brand

Now you've got some people in your pool, let's bring in more. Your brand is your magnet. It tells people what you stand for, what your vibe is, and why they should join you.

To step up your game, look at your website. Is it telling your story well? Next, check your social media. Is it buzzing with your company's good stuff? If not, it's time to rev up!


4. Tech Up: The Secret Sauce

Lastly, you need great tech. You want a system that works under your brand, giving your people a smooth ride.

Good tech is not just about keeping things tidy. It's about seeing the big picture. It lets you bring your plan to life, breaking down walls and getting everyone on the same page.


The Wrap Up


Direct Sourcing is game-changing. With a solid plan, a crew ready to rock, a good rep, and top-notch tools, you're all set.

But remember, we're just starting. In the next newsletter, we'll dig deeper into each step.

We'll talk about how to keep your talent pool happy and growing.

Plus, we'll reveal how to partner with companies profiting from Direct Sourcing with you.

Can't wait to keep this chat going!



Whenever you're ready, there are 2 ways I can help you:πŸš€


1. If you want learn more about how technology can help you lay the foundation for your direct sourcing, go here: https://bubty.com/

2. If you want to talk to me one-on-one, feel free to book a call here: https://calendly.com/bubty/dis...


See you next week for another deep dive into the world of talent pools!


if you want to dive deeper into any of these topics, you can always catch me here: https://www.linkedin.com/in/lee-willoughby-997899182/