Smart Source: Cost & Time Save

Summary

Direct Sourcing Customer Benefits by Consult our client, a top-tier custodian bank in Canada, had been relying on high-cost suppliers for straightforward roles, leading to increasing costs and longer time-to-fill. Consult introduced our direct sourcing solution, demonstrating its advantages. This approach not only earned the bank’s trust but also improved fill rates and reduced staffing margins.

The Challenge

Presenting Future Advantages of Direct Sourcing The bank’s operations were highly segmented, posing a challenge in aligning stakeholders with a new talent strategy. Despite the satisfactory performance and long-standing relationships with their suppliers, the costs were substantial. To meet their cost-saving objectives, it was essential to optimize the current supply base and challenge the existing norms.

Consult needed to demonstrate that its direct sourcing solution would outperform the bank's current model while offering significant cost savings.

How We Helped

Implementing Direct Sourcing for Rapid Access to Quality Talent After thorough consultations with key stakeholders, we deployed our direct sourcing solution – a bespoke, employer-branded talent community of pre-vetted candidates, focusing on cost and time efficiency.

Initially, our dedicated team, including four onsite full-time employees, six sourcers, two background screeners, and customer care specialists, targeted roles that were easy to fill. Working closely with hiring managers, the team emphasized quickly delivering high-quality candidates through direct sourcing. This approach quickly earned the hiring managers' trust, as they received an abundance of qualified candidates ready for employment.

Integrating our direct sourcing with the existing Managed Service Provider (MSP) presented multiple benefits, including:

• Broader Talent Access: Tapping into an untapped talent pool through new sourcing channels.

  
  

• Significant Cost Savings: Reduced staffing margins, lower than traditional supplier costs.

  
  

• Faster Hiring: Swiftly connecting with the right talent through familiar and brand-loyal talent communities.

  
  

• Enhanced Candidate Experience: Higher candidate engagement led to happier, more committed talent.

Gradually, the success of our service and the value-added model fostered trust. Our direct sourcing recruiters efficiently filled roles, with the option to collaborate with supplier partners when necessary.

We minimized reliance on third-party suppliers, leveraging our branded talent community for faster identification and onboarding of contingent resources compared to traditional staffing methods.

The client was extremely satisfied with the cost savings and expedited fill rates achieved through direct contingent relationships. The flexible model allowed retention of essential suppliers while also sourcing directly, thus saving on supplier markup costs.

As time progressed, confidence in our services grew, with an increasing number of requisitions filled through direct sourcing, even for more challenging senior and niche roles.

Impact

Significant Cost and Time Savings with Direct Sourcing Initially, 40% of roles typically assigned to suppliers were filled directly, saving the bank nearly CAD 200,000 in agency markup costs in the first year. In high-volume areas, the release-to-offer period was reduced by three to four days on average, with 40% fewer CVs per offer.

Five years into the enhanced program, Consult continues to save the bank over CAD 500,000 annually in agency fees. Beyond financial benefits, we've filled roles more quickly with better-matched candidates and have established a talent pipeline for future needs.