Tackling the 3 Biggest Direct Sourcing Challenges in Healthcare Staffing
February 02, 2024

According to reports and surveys from Staffing Industry Analysts, direct sourcing is on the rise for Healthcare Staffing companies. The potential to reduce recruitment costs by 30% is alluring, but an alarmingly few organizations see this kind of return:

Of 183 companies surveyed by SIA, only 16% of organizations strongly agree that direct sourcing is effectively implemented.

With over 80% of implementations failing to meet expectations, there are three issues that continually surface across the industry. Tackling these is the first step to realizing a satisfactory ROI from a new direct sourcing platform:



3 Barriers to Success in Direct Sourcing

1. Resistance to Change
2. Integration & Compatibility
3. Navigating Candidate Quality & Engagement

Resistance to Direct Sourcing Platforms

Full adoption of new tech can take months and in the worst cases years. If a team is unable or unwilling to incorporate a new solution for whatever reason, the latter is more likely than the former.

SIA's research found that 41% of those surveyed believe a lack of skills is most likely to halt a digital transformation.

Introducing a new technology or platform can often meet resistance from employees who are comfortable with existing processes. Some recruiters may be hesitant to embrace new methods and tools, which could impact their productivity and effectiveness.


31% believe that "Transformation Fatigue", or the general overwhelm that training,

onboarding, etc. of a direct sourcing platform takes is a leading reason for those extended adoption periods.

Whether it's a lack of skills or a general fatigue from change, the bottom line remains affected. Being able to reduce the time it takes to effectively implement and benefit from direct sourcing platforms by multiple months can maximize the ROI associated.






Integration and Compatibility of Direct Sourcing Platforms

Companies without a deep integration landscape or the ability to customize their recruiting tech stack will fall behind in direct sourcing efforts.

Out of those surveyed by SIA, 39% say that legacy technology is to blame for the

efficacy issues with their digital transformations to a direct sourcing platform.

Healthcare staffing companies often use multiple systems and tools for recruiting, applicant tracking, and credentialing. Integrating a new direct sourcing platform into the existing infrastructure, ensuring data compatibility, and avoiding duplication of efforts can be a complex and time-consuming process.

Navigating Candidate Quality & Engagement

It comes down to an issue of scale. Without additional manpower or dedicated hours to sourcing and screening candidates, businesses will never fully actualize the ROI they expect from a direct sourcing platform.

More leads means more hours dedicated manpower. Even though businesses get access to an extensive pool of candidates, if there aren't enough qualified recruitment professionals available to utilize the vast network provided, there are always going to be candidates left on the table unseen and uncontacted.

Direct sourcing platforms provide access to a large pool of candidates, but the challenge lies in identifying and engaging with the most qualified ones. Companies may need to invest time and effort in optimizing their sourcing strategies, using advanced search filters, and building relationships with potential candidates to ensure quality hires.

Mitigating the Top 3 Issues with Direct Staffing

Addressing each of these issues on their own seems daunting already. For companies that have already deployed their direct staffing efforts, it may seem impossible to do. Fortunately, there is a cost-effective and efficient way to manage all three with one solution.

RPO and Direct sourcing

The clearest and often most obvious benefit to employing an RPO strategy with a direct sourcing platform is the additional workforce to navigate and manage the expanded candidate pools available.

With a scalable RPO team in a partial-cycle strategy, all the sourcing and early stages of screening are taken care of by the external provider. Essentially, the major benefit of a larger candidate pool now has no downside with a capable and dedicated team to utilize the Direct sourcing platform.

RPO is a strategic partnership between an organization and an external provider that takes on the responsibility of managing some or all aspects of their recruitment process. For Healthcare Staffing companies looking to maximize their direct sourcing efforts, partial-cycle RPO is the best path.

In partial-cycle RPO, the external provider typically takes on tasks such as sourcing candidates, conducting initial screenings, or assisting with candidate assessments. This approach allows organizations to leverage the expertise and resources of the RPO provider for specific parts of the recruitment process, while still maintaining control over other aspects internally. It can be a flexible and cost-effective solution for organizations that want to optimize certain stages of their recruitment process.

A Healthcare Staffing company that utilizes partial-cycle RPO alongside their direct sourcing platform immediately overcomes a variety of challenges. Where resistance to change is concerned, "Implementation Fatigue" and lack of skills are both addressed instantly.

The external provider assures that:

  • Their team is trained across direct sourcing platforms
  • Able to adapt sufficiently across assignments
  • Continuing education is implemented
  • A high-performing RPO solution makes sure that all team members receive proper training and are flexible enough to adapt to any direct sourcing platform for their client. In addition, a quality RPO solution's tech stack itself is exceedingly compatible and integration friendly.

    ROI Expansion for Direct sourcing Platforms with RPO

    In addition to mitigating the three major issues associated, companies that utilize an RPO alongside their direct sourcing platform can see even greater reductions in recruitment cost than the 30% that drew them in originally.

    A High-performing RPO strategy boosts efficiency, scalability, and cost-effectiveness of healthcare organizations.

    PSG Global Solutions clients in Healthcare Staffing see:

  • Automation of up to 85% of recruitment processes
  • 40-60% decrease in cost-per-hire
  • 50% more hires-per-person
  • Summary

    Direct sourcing platforms are quickly becoming a mission-critical goal of Healthcare Staffing companies across the industry. The benefits of it are vast, but without the proper implementation, integration, and navigation, very few see the most of these benefits.

    A partial-cycle RPO solution not only maximizes the investment that Healthcare Staffing companies see from Direct sourcing platforms, but they expand the investment, and return an ROI greater than Direct sourcing efforts alone.

    PSG Global Solutions is the fastest-growing worldwide provider of RPO services, and was built on the pillars of efficiency, flexibility, and cost-effectiveness to maximize value for clients.

    70% of leading Healthcare Staffing companies utilize RPO services to maximize the benefit of direct sourcing and amplify their team's efficacy.

    If you or your organization are curious about how you can eliminate the 3 biggest issues with direct staffing platforms and scale your recruitment efforts, get in touch. 75% of clients report seeing ROI immediately.

    Let's see what we can make happen for you today.

    Contact PSG