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How Direct Sourcing and Pre-Verification Save You Time and Money

Komal Dangi
Komal Dangi

By cutting out the middleman (recruitment agencies) and letting you deal directly with prospective talent, direct sourcing can save your organization significant time and money.

Show me a company that isn’t focused on saving time and money, and I’ll show you a company that’s doomed to fail. We operate in a world where we expect near-immediate gratification: we stream movies, pay yearly premiums for fast shipping, communicate via text message, and search the internet for answers for which we used to visit the library.

With the current consumer demand for getting things fast, a company that doesn’t find ways to save time will certainly lose money. Consequently, when it comes to sourcing and hiring talent (often an expensive and time-consuming process), the company that uses direct sourcing and streamlined candidate verification processes will find itself ahead of the game.

Direct sourcing

Direct sourcing is a talent management process in which a company develops its own talent pool and pulls from it directly to fill vacant positions rather than using a recruiting agency. Often, managers build relationships with independent professionals and repeatedly turn to them for long- or short-term project work, rather than onboarding permanent staff.

By cutting out the middleman (outside recruitment agencies) and dealing directly with prospective talent, direct sourcing can be the means of saving organizations significant time and money, thereby increasing their return on their hiring investments and boosting a company’s bottom line.    

How direct sourcing saves time

No waiting

The paradigm for finding work candidates has shifted markedly and is unlikely to shift back. According to Travis O’Rourke, Vice President of Head of Hays Talent Solutions, “Recruitment is already a far distance from the post-and-apply model of decades past, and in [a] world of skills scarcity you must find and engage with candidates to get the talent you need.”

This shift is a positive change in many ways, but perhaps particularly as it relates to saving time. Now, rather than waiting for candidates to come to you, you go to them. Platforms and apps where qualified candidates await discovery are in abundant supply. 

Your work is half-finished

Speaking of apps and platforms, you’ll find that if you use them, they’ll have done a large part of the work for you by the time you get there. Sifting through resumes? Check. Employee verification? Check. Unqualified candidates weeded out? Check.

Your talent management team will be able to focus on onboarding rather than frontloading, which will get people to work faster, resulting in a better experience on both sides of the equation.

Full pipelines

Direct sourcing, especially in terms of bringing on freelancers or consultants, results in a talent pool that feeds itself. When you source and hire qualified people for contingent work, the relationship doesn’t need to end just because the project has.

  • Freelancers: Freelancers typically operate as the sole proprietors of their own businesses. They’re self-employed, set their own rates, provide specialized services, and often work remotely. Freelancers have full discretion regarding the projects they want to accept, and they can work with multiple clients at a time.
  • Independent contractors/consultants: Independents typically works with one client for a longer period than freelancers, and often for an hourly rate. They can work through a third party or agency, but they can also work on their own. These contractors and consultants may also work on location for the organization.
  • Gig workers: Gig workers are freelancers in that they earn money independently, but often are managed and marketed through a specialized platform which can route work to them (think Fiverr, Upwork, etc.). The main difference between gig workers and freelancers is that gig workers don’t entirely run their own businesses.

As you hire these professionals for specific projects, your in-house talent database expands, leaving you with a pipeline of vetted, tried-and-true candidates to choose from for future assignments. The larger this pipeline grows, the more your company will have already absorbed the work of onboarding, and the quicker you can fill vacancies with full confidence. 

How direct sourcing saves money

Reduced recruiting costs

Third-party staffing companies, like everybody else, are in the business of making money. As such, they may mark up their services anywhere from 20% to 40%, which accounts for a good portion of what organizations spend on their hiring processes. If you can cut that out by sourcing your own talent, you’ll see significant savings that will continue to grow with every independent professional you bring on – and especially for those you bring back.

By establishing an in-house recruiting system, you can focus specifically on finding and attracting independent talent, which is something that most recruiting companies don’t do. You can also work on deepening the pool from which you draw on a regular basis. 

Reduced payroll costs

Additionally, independent talent acquired through direct sourcing is often less costly to a company in terms of benefits packages and permanent paychecks. The flexibility of hiring independent contractors for projects allows you to bypass the costs of recruiting, hiring, training, and retaining (with perks, insurance, and other benefits) permanent employees.


One of the benefits of using an existing direct sourcing application or platform is that they take care of a large part of the candidate verification process for you, which removes a significant helping from your talent management team’s plate of responsibilities. This service is advantageous in terms of both time and money.


Job verification, also known as candidate verification or employee screening, is a process by which organizations determine whether a candidate is a good fit for a company.

To determine whether a prospective employee is trustworthy with the right personality and credentials for the job, talent management officials may consider factors such as:

  • Driving record
  • Criminal record
  • Education
  • Employment history
  • Social media presence

The process may include drug screenings, background checks, personality tests, or other procedures that hiring officials deem relevant.

Pre-verification, then, is when much or the entirety of the candidate verification process is complete before the applicant even gets in front of an organization’s hiring administrators. Reputable direct sourcing platforms will conduct pre-screening as a routine part of their process.

How pre-verification saves time

Reduced resume-sifting

One of the most dreaded and time-consuming facets of the entire recruiting process is sifting through countless resumes to determine which candidates are worth approaching. As every recruiter knows, sometimes even the most promising resumes don’t yield equally promising candidates as some people unfortunately fabricate their work history.

Imagine the time you can save by combing a beach for candidates where the sand has already been sifted and the less desirable clumps have been removed, leaving the most qualified candidates ready to connect with. To make it even easier, some direct sourcing platforms specialize in specific industries, saving you that much more time by further reducing the number of prospects you need to scan. 

Reduced screening time

There is no way around it – employee verification is a time-consuming process. Phone screens, preliminary interviews, and reference checks don’t conduct themselves. Even filling out the paperwork, electronic or otherwise, can eat up precious hours. Pre-verification can give you those hours back.

How pre-verification saves money

Reduced processing costs

Employee screening can include such items as:

  • Reference checks
  • Education checks
  • Driver’s record checks
  • Drug testing
  • Criminal background checks
  • Personality tests
  • Social media history reviews

In terms of time and/or money, none of these tests are completely free, and some are remarkably expensive. Quality criminal background checks, drug screens, and personality tests, for instance, are all quite costly. UCSDHC Jobs states, “According to a recent report in HR Magazine, over 76 percent of companies use some form of employee screening when recruiting candidates. Most organizations have a third-party vendor conduct the employee screening.” As we have established, third-party vendors don’t come cheap.

But with identity theft, misappropriation of funds, investment fraud, violence, and sexual misconduct in the workplace, companies can’t afford not to safeguard their bottom line by implementing employee screenings as part of their recruitment practice. Direct sourcing prospective hires who have already been vetted in such areas can significantly improve peace of mind, as well as save you a hefty amount in processing fees. 

Better retention

Smart talent management teams understand they need to weed out prospective candidates who could be problematic to avoid problems such as weak performance, attendance issues, and workplace drama.

Should troublesome prospects not be properly vetted, they end up as problem employees rather than problem candidates. The unavoidable consequence of making poor hiring decisions due to incomplete or subpar screening is that those hires don’t last, and the company finds itself back at the drawing board, spending more time and money on trying to find new talent. Pre-verification lowers that risk. 

Pre-verification technology is waiting for you

Perhaps most importantly, know that you don’t have to reinvent the wheel. Excellent talent management programs geared specifically toward direct sourcing are available that can help you with everything from onboarding and payment processes to documentation, vetting, and compliance solutions.

Candidate verification technology exists to make our lives easier. By using talent management software like that of VeriKlick, you can set certain hiring and recruiting tasks to perform automatically, verify credentials, and more. Give people on your team more time to focus on other responsibilities while simplifying the hiring and recruiting processes.

Make hiring easy

The task of sourcing your own prospects and properly vetting them might sound overwhelming, but the good news is that when properly managed, it’s much easier than it used to be. Excellent direct sourcing platforms and applications are available that help you every step of the way.

The technology is readily available, and it isn’t hard to find. If you take the time to research the right solution for your organization, you’ll find that this investment pays rich dividends by saving you ample time and money as you move forward. It will also empower you to make your hiring decisions with more ease and higher confidence.

Image Credit: RossHelen / Getty Images
Komal Dangi
Komal Dangi Member
Komal Dangi is CEO of Synkriom lnc. a global IT staffing company that supports both on / offshore clientele and resources. Its patent-pending product, VeriKlick, is a web-based tool for use in the HR space that eliminates candidate bait-and-switch, fake resumes and increases hiring ROI.