Aptitude Research conducted a survey in July 2020, during the height of the pandemic, and found that the most critical capability gap in TA involved sourcing candidates. Three years later, sourcing remains the biggest challenge for talent acquisition teams, even with a possible economic downturn. We recently published a new study on the State of Sourcing with relode. Companies need help identifying and attracting the right talent regardless of industry or hiring activity, even with new solutions and opportunities. Sourcing is often reactionary as companies are left scrambling to find and compete for talent in a short period of time.
Companies built out internal expertise, outsourced sourcing activities, or leveraged technology that included job boards, sourcing solutions, talent intelligence, and contingent workforce solutions to fill this capability gap. And, no surprise, with new solutions and the impact of AI, companies turned to technology to help fill the gaps and provide immediate solutions. But, not all sourcing providers are the same.
And the result is that many sourcing strategies fail to deliver results. We found several challenges with sourcing, including:
– Dissatisfaction With Sourcing Strategies: Seventy-five percent (75%) of companies are unhappy 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 Solutions: One in three companies uses more than five sourcing tools.
– Lack of Expertise: Many companies lack the expertise and capabilities to source effectively.
– Sourcing Diverse Candidates: Companies rely on the same job board, 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.
– Difficulty Finding Candidates in the ATS/CRM: Search is frustrating 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 Search is limited to keywords, and many candidates have incomplete or outdated profiles.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 an average of 10 hours a week looking for candidates in the ATS.
– Limited Inhouse Expertise: Companies do not have expertise in sourcing. Some companies building outsourcing functions shuffle recruiters or HR professionals into a sourcing role without considering the expertise needed.
Companies are responding to these challenges by rethinking their approach to sourcing and focusing on building a more effective process. Companies are shifting their view around the following:
– Shifts in the Definition of Talent: Companies must think more holistically around talent and include contingent workers in their sourcing strategies.
– Shifts in Sourcing Channels: Companies have shifted sourcing channels over the past year, and determining what option works for the future is a key priority in 2023.
– Shifts to Quality: Sourcing must balance both efficiency and quality.
– Shifts to Data-Driven Approach: Sourcing can no longer be ad hoc. Companies need data to gain insights and drive decision-making around sourcing strategies.
Our latest research report (in partnership with relode) provides some guidance and recommendations for organizations making these shifts.