Direct sourcing is a pivotal strategy in talent acquisition that empowers organizations to proactively identify, attract and engage top talent. With the growth of the gig economy and blurring of lines between full-time and temporary employment, workers who traditionally seek full-time employment are increasingly willing to take up temporary placements—and vice versa. Organizations that create and nurture blended talent pools of both permanent and contingent workers through direct sourcing best practices can bypass traditional recruitment channels and connect with top talent in a more personalized and efficient manner.
Here are seven direct sourcing best practices to successfully implement direct sourcing as part of your talent acquisition strategy:
1. Focus on Your Employer Brand
A strong employer brand showcases what makes your company unique and appealing, serving as a powerful magnet for skilled professionals seeking temporary, project-based and full-time work. Investing in your employer brand pays dividends in direct sourcing by reducing time-to-hire, improving the quality of candidates and enhancing candidate engagement. Moreover, it helps build trust and credibility with potential workers, making them more likely to choose your organization over competitors.
To build an effective employer brand, start by developing a compelling employer value proposition (EVP) that highlights the distinct advantages of working with your organization. This should encompass your company’s values, culture and the unique opportunities you offer. Consider factors such as flexible work arrangements, challenging projects and professional development opportunities. Communicate these elements clearly and consistently across your website, social media platforms, email nurture campaigns and other channels to create a cohesive brand image.
With 41% of companies expecting to increase their use of contingent workers, it’s important to ensure that your EVP applies to both your temporary and permanent employees. Have you formally defined the value proposition for contractors? Contingent workers are a part of your cultural DNA and deserve the same experience as full-time workers. It may help to shift from using the term EVP, which implies the value is only experienced by those you employ directly, to using Worker Value Proposition (WVP) to make it more inclusive. Direct sourcing can help that drive that connection to the employer brand —regardless of classification.
2. Implement Robust Technology
Technology forms the second cornerstone of successful direct sourcing, providing the essential infrastructure for implementing and optimizing sourcing strategies. In fact, the effectiveness of most of our direct sourcing best practices hinges on the availability and proper utilization of advanced technology tools.
Look for solutions that offer AI-powered matching capabilities, which can dramatically improve the speed and accuracy of candidate selection. For example, PeopleScout’s Direct Sourcing is a tech-powered solution that helps you rediscover candidates who are already in your candidate database with the use of AI. Affinix™, our proprietary talent acquisition suite, compares your job description against profiles in your database and identifies a list of the best candidates—whether they’re previous applicants, individuals who have filled out an expression of interest form for the role, or silver/bronze medalists from previous requisitions. You receive a weighted score for each candidate (based on previous job titles and experience, skills profile and management experience) along with a written summary. Your hiring manager can then determine which candidates they want to pursue immediately, and which to add to a talent pool, where they’ll receive additional outreach before being invited to apply.
We can also use our AI smart search technology to tap into 1.3 billion candidate profiles across multiple external talent databases. This vastly expands your access to talent by identifying strong candidates within seconds of opening a new job requisition.
In addition to outbound channels, PeopleScout’s Direct Sourcing offers technology solutions for inbound sourcing channels including custom careers sites, internal job portals, expression of interest forms and programmatic advertising.
In addition to sourcing capabilities, prioritize platforms with robust automation to reduce manual tasks and free up your team to focus on strategic initiatives. Don’t forget comprehensive analytics to help you continually refine your sourcing strategies, identify trends and measure your efforts.
3. Create Segmented Talent Pools
Creating segmented talent pools is a crucial strategy in effective direct sourcing, allowing organizations to target their efforts more precisely and efficiently. By developing and maintaining pools of both permanent and contingent talent based on skills, experience levels and job types, companies can quickly identify and engage the best candidates for specific roles or projects.
This targeted approach allows for more personalized engagement strategies, tailored communication and faster matching of candidates to opportunities. Through analytics you can develop an understanding of each talent segment’s unique needs and motivations, allowing you to refine your value proposition for different groups. Ultimately, segmented talent pools build stronger connections with candidates, improving the quality of hires and the efficiency of your direct sourcing program.
4. Develop Talent Engagement Strategies
Once you’ve established distinct talent segments, it’s essential to develop and implement engagement approaches that resonate with each group’s unique characteristics and preferences. This personalized approach ensures that your communication is relevant, timely and effective, increasing the likelihood of attracting and retaining top talent for your organization.
Implement a robust CRM and recruitment marketing engine to streamline and automate these engagement processes, allowing for consistent and personalized interactions at scale. Regularly provide updates, feedback, and relevant information to keep candidates engaged and interested, fostering a sense of connection with your organization even before a specific opportunity arises. Your engagement strategy should also span social media, networking events, relevant online platforms, industry associations and SMS to keep your talent pools informed about opportunities and foster connection.
This approach not only helps you cultivate a diverse pool of specialized talent but also positions your organization as an attractive option for skilled professionals. By maintaining active engagement with passive talent, you create a ready pipeline of qualified candidates, enabling you to quickly scale your workforce and access a broad spectrum of skills and expertise when needed.
5. Focus on the Candidate Experience
In the realm of direct sourcing best practices, a positive candidate experience not only enhances your organization’s reputation but also increases the likelihood of successful placements and repeat engagements. Regardless of whether a candidate is up for a permanent or contingent role, they’ll be expecting a mobile-first, streamlined, informative and engaging process from initial outreach through placement.
Focus on transparency and communication throughout the sourcing process. Provide clear, detailed job descriptions and requirements, offer insights into your company culture and set realistic expectations regarding timelines and next steps. A tech-powered solution will feature automation that ensures candidates receive timely responses to their applications and inquiries.
By prioritizing a positive candidate experience, you not only improve your chances of securing top talent but also build a strong employer brand that attracts high-quality candidates to your talent pools over time.
6. Optimize Direct Sourcing Performance
Measuring and optimizing the performance of your direct sourcing program is crucial for long-term success and continuous improvement. To effectively gauge the impact of your efforts, it’s essential to track key metrics that provide insights into various aspects of your sourcing strategy such as time-to-fill, quality of hires, cost per hire, candidate engagement rates and source of hire. Additionally, monitor the size and quality of your talent pools, the effectiveness of your engagement strategies, and the overall satisfaction of both candidates and hiring managers.
Regularly analyzing these metrics will provide a comprehensive view of your direct sourcing program’s performance and highlight areas for improvement. For instance, if you notice a particular talent pool consistently yields high-quality candidates with shorter time-to-fill rates, you might allocate more resources to cultivating that segment. Similarly, if certain engagement tactics result in higher response rates, you can refine your communication strategies accordingly.
Continuously refining your approach based on performance data ensures that your direct sourcing program remains agile and effective, adapting to changing market conditions and organizational needs. Remember, the goal is not just to collect data, but to translate these insights into improvements.
7. Consider Outsourcing to a Talent Partner
While implementing a successful direct sourcing strategy can yield a competitive edge, it requires substantial resources, expertise and ongoing management. This is where a total talent solutions partner can be a game-changer for organizations.
Outsourced total talent solutions providers who offer recruitment process outsourcing (RPO) and managed service programs (MSP) have the advantage of scale and specialization. They continuously invest in the latest sourcing technologies, stay abreast of market trends and refine their strategies based on data from multiple clients across various industries. This expertise enables them to build and manage segmented talent pools more efficiently, implement sophisticated engagement strategies and deliver an outstanding candidate experience.
Moreover, a partner brings consultation to a direct sourcing solution. By evaluating the skills gaps in your organization in line with your anticipated demand, a talent partner can help you develop more formal workforce planning to keep you ahead of the curve. Direct sourcing can play a major role in pipelining talent so you can tap into it at the right time.
This approach not only saves time and costs from staffing agencies, but it also provides access to a broader and more diverse talent pool, enhances employer branding efforts and improves the quality of hires. Ultimately, partnering with a provider to help execute direct sourcing best practices enables organizations to achieve better results faster, positioning them to combine approaches for contingent and permanent talent acquisition management and take steps toward total workforce management.
PeopleScout’s Direct Sourcing is a tech-powered solution for engaging top talent for permanent and contingent roles, while leveraging the power of your employer brand. We lay the framework for a sustainable total talent strategy by proactively creating a pipeline of freelance, temporary and permanent talent from your existing database combined with our global reach of 1.3B candidate profiles.
Direct sourcing is a pivotal strategy in talent acquisition that empowers organizations to proactively identify, attract and engage top talent. With the growth of the gig economy and blurring of lines between full-time and temporary employment, workers who traditionally seek full-time employment are increasingly willing to take up temporary placements—and vice versa. Organizations that create…
Direct Sourcing by PeopleScout PeopleScout’s Direct Sourcing is a tech-powered solution for engaging top talent for permanent and contingent roles, while leveraging the power of your employer brand. We lay the framework for a sustainable total talent strategy by proactively creating a pipeline of freelance, temporary and permanent talent from your existing database combined with…
Situation This Australian radiology network operates in 270 clinics, employs over 350 doctors and 4,000 staff and performs over six million patient procedures a year, making them one of the largest medical imaging providers in the world. The organization needed to hire high-volume, critical healthcare roles across both metropolitan and regional locations, but they were…
Overcoming Healthcare Talent Shortage with Tech-Powered Direct Sourcing
An Australian radiology network sought PeopleScout’s Direct Sourcing solution after two acquisitions expanded their geographical footprint, making it increasingly difficult to fill critical skilled healthcare roles amidst a talent shortage and an imbalanced distribution of practitioners across regions.
401roles filled in just 5 months
112roles filled in remote locations
33locations supported
83%engagement rate on doctor campaign
Situation
This Australian radiology network operates in 270 clinics, employs over 350 doctors and 4,000 staff and performs over six million patient procedures a year, making them one of the largest medical imaging providers in the world. The organization needed to hire high-volume, critical healthcare roles across both metropolitan and regional locations, but they were struggling because of the talent shortage across their newly expanded regional footprint. In addition to the unique talent challenges facing the healthcare sector globally—including employee burnout, widening skills gaps and rising demand among the aging population—the diagnostic imaging sector in Australia faces the additional challenge of ensuring staff distribution across metropolitan, regional and rural areas is proportionate to the population. Historically, most radiology workers have resided in metropolitan areas, creating a gap in rural locations.
Prior to engaging PeopleScout, the client used disparate, short-term solutions and lacked a single view of the skills within their existing workforce. They did not have a talent technology platform, but instead managed requisitions and candidate outreach efforts using Excel spreadsheets. Our team developed a Direct Sourcing solution to help the client overcome the healthcare talent shortage and meet their workforce goals in all locations.
Solution
PeopleScout augmented the internal recruitment team with Direct Sourcing for both contingent and permanent roles ranging from medical receptionists to radiographers, sonographers to IT personnel, by developing and implementing 360-degree talent sourcing and engagement strategy that included:
Multi-Channel Sourcing: We deployed Smart Search, an Affinix™ tool that simultaneously scours multiple external databases, capturing and saving profiles that match desired skills and experience.
AI-Powered Talent Rediscovery: Using artificial intelligence, we matched job descriptions to all candidates in the platform, generating a list of recommended candidates that were scored for suitability, based on industry experience, skills, previous job titles and management experience.
Cutting-Edge Recruitment Marketing: Leveraging Affinix’s capabilities, we built an internal career site and external job portal. These engagement hubs allowed employees and candidates to explore openings, learn about different roles or submit expression of interest forms for hard-to-fill positions.
Sophisticated Talent Nurturing: Candidates were segmented into talent pools by role and region, then added to customized, automated nurture campaigns. This allowed our client to engage or re-engage with active and passive candidates, alumni and referrals effectively.
Data-Driven Insights: Custom Affinix dashboards provided real-time insights on the most active candidates, enabling the team to build automated drip campaigns that kept jobseekers engaged and interested.
Results
The impact of our tech-powered Direct Sourcing solution was swift and substantial. In the first five months following program launch, PeopleScout filled 401 roles for the radiology network across 33 locations, including every state and territory where the organization operates.
Some campaign messaging was role-specific—the campaign targeting 800 doctors had an engagement rate over 80%.
Other messages focused on the benefits of working in the more remote locations, highlighting the “perfect combination of a vibrant city life in a rural setting.” Of the roles filled, 112 were within these regional locations, where recruitment had historically been more difficult.
At a Glance
COMPANY: Radiology network
INDUSTRY: Healthcare
PEOPLESCOUT SOLUTIONS: Total Talent, Affinix
LOCATIONS: 33 locations across Australia and New Zealand
The evolution of remote work has resulted in the growth of the gig economy and the blurring of lines between full-time and temporary employment. Workers who traditionally seek full-time employment are increasingly willing to take up temporary gigs—and vice versa. Organizations that create and nurture blended talent pools of both permanent and contingent workers can be more intentional with workforce planning to address skills gaps and diversity goals. Enter direct sourcing—a game-changing strategy that’s reshaping how companies approach talent acquisition.
By integrating direct sourcing into your total talent acquisition strategy, you can turn these talent pools into your strongest channel for growing your workforce, bringing forward pre-engaged talent. This results in faster hiring and improves overall organizational productivity. With direct sourcing, you can uncover hidden talent and gain a competitive edge in attracting top-tier candidates.
But what is direct sourcing, and why should talent acquisition leaders pay attention? In this article, we’ll delve into the importance of direct sourcing, it’s role in total talent management, its benefits, and the crucial role of technology in a direct sourcing solution.
What is Direct Sourcing?
First things first, what is direct sourcing anyway? Direct sourcing is a recruitment approach that leverages an organization’s employer brand and existing talent database to build and manage talent pools for both permanent and contingent positions. This method allows organizations to engage directly with potential hires, including former employees, retirees, referrals, interns, and even “silver medalists” and candidates who were runners-up in previous hiring processes. Unlike traditional methods that rely heavily on staffing agencies, direct sourcing creates a pipeline of freelance, temporary and permanent talent, reducing costs, improving hiring efficiency and allowing employers to take control of their hiring needs.
At its core, direct sourcing involves:
Utilizing your employer brand to attract talent
Creating and managing exclusive talent pools
Proactively engaging with potential candidates
Direct Sourcing: The First Step to Total Talent Acquisition?
According to Everest Group, 46% of enterprises are actively exploring ways to combine approaches for contingent and permanent talent acquisition management, and 74% see direct sourcing as the way to do it. By sharing people, processes and technology across vacancy types through direct sourcing, organizations gain efficiency and get closer to total workforce management.
Partners like PeopleScout excel at direct sourcing, as their specialty lies in seamlessly integrating with client teams, leveraging the client’s employer brand to attract top talent. Plus, with a partner, you gain access to specialized technology for managing and curating talent pools, ensuring a streamlined and efficient process while still maintaining the benefits of direct engagement with potential hires.
The Benefits of Direct Sourcing
Direct sourcing offers numerous benefits that are driving its adoption among forward-thinking organizations. Let’s explore the top advantages:
Faster Hiring Cycles: With always-on talent pools, direct sourcing can significantly reduce time-to-hire. By eliminating the need for a staffing agency and leveraging candidates who already exist in the ATS and CRM (and are familiar with your employer brand), direct sourcing puts engaged candidates at your fingertips. Having regular access to qualified candidates, referrals and former employees allows you to easily adjust to changing workforce needs.
Greater Cost Savings: Direct sourcing can significantly reduce recruitment costs by minimizing reliance on staffing agencies and their associated fees. An RPO partner who can offer AI-powered sourcing and innovative ways to ensure smarter media spend can reduce your costs and maximize your ROI for direct sourcing.
Higher Quality of Candidates: By leveraging your employer brand and creating curated talent pools, direct sourcing allows you to attract higher-quality candidates who are better aligned with your organization’s culture and needs. Through personalized engagement with candidates, RPO providers can gain a deeper understanding of their skills, experiences and motivations. Additionally, direct sourcing allows companies to build lasting relationships with top talent, creating a talent pool that can be tapped for future openings.
Enhanced Candidate Experience: Direct sourcing meansmore personalized and human interactions, which improves the candidate experience. By engaging proactively with potential hires, you can provide a smoother, more informative process that reflects positively on your brand.
Employer Brand Attraction: In a direct sourcing engagement, your RPO partner is an extension of your team, transforming your employer brand into a powerful tool in attracting top contingent and permanent talent. Direct sourcing allows you to showcase your company culture, values and opportunities through relevant and engaging touchpoints, helping you become an employer of choice.
Access to Data & Insights: With extensive experience across job families and regions, RPOs are well suited to evaluate your unique recruitment metrics against market trends to enable data-driven decision making for your direct souring program. Detailed analytics help decode top talent behaviors and predict cultural fit, willingness to change companies and future tenure potential to improve hiring speed and accuracy over time.
Improved Diversity: The targeted nature of direct sourcing means you can identify, select and engage candidates from various audiences to meet diversity goals.
Improved Hiring Manager Experience: Direct sourcing provides hiring managers with better access to high-quality and diverse talent pools, freeing them up to focus on leading their teams instead of recruiting.
The Role of Technology in Direct Sourcing
While the concept of direct sourcing is powerful on its own, technology unlocks its true potential. Modern direct sourcing solutions leverage AI, multi-channel sourcing, communication automation and analytics to supercharge the approach.
When deciding on a direct sourcing solution, consider the following technologies:
AI and Machine Learning: These technologies enable superior skills matching, connecting the right candidates with the right opportunities more efficiently than ever before. PeopleScout Direct Sourcing helps you rediscover candidates who are already in your applicant tracking system (ATS) with the use of AI. Affinix™, our proprietary talent acquisition suite, compares your job description against profiles in your database and identifies a list of the best candidates—whether they’re previous applicants, individuals who have filled out an expression of interest form for the role, or silver/bronze medalists from previous requisitions. You receive a weighted role suitability score for each candidate (based on previous job titles and experience, skills profile, and management experience) along with a written summary. Your hiring manager can then determine which candidates they want to pursue immediately, and which to add to a talent pool, where they’ll receive additional outreach before being invited to apply.
Smart Search: In addition to your existing ATS, consider a direct sourcing solution that enables you to search across multiple external talent databases—such as LinkedIn and Indeed—simultaneously and save relevant candidate profiles into your own database. This helps you beat your competitors to hard-to-find talent and source more efficiently with a seamless experience for your hiring managers. AI can be applied to these candidates as well to identify strong candidates—passive or active, known or new to you—within seconds of opening a new job requisition.
Multi-Channel Sourcing: To truly capitalize on your employer brand with your direct sourcing program, a multi-channel approach that leverages recruitment marketing to reach top talent is crucial. This includes custom career site and microsite development, for both internal and external job portals, expression of interest forms and programmatic advertising. This holistic approach will re-engage talent and excite them about your opportunities.
Personalization at Scale: Your direct sourcing solution should feature recruitment marketing technology that helps you develop a series of automated targeted communication touchpoints to engage or re-engage with passive candidates, silver/bronze medalists, contractors, alumni and referrals. Personalized emails and automated drip campaigns will keep your brand top-of-mind. Use analytics from communication and nurture campaigns to access insight into which candidates are engaging most with your content and whether the content you’re distributing resonates with the candidate pool.
Data-Driven Insights: For your direct sourcing program, insist on robust reporting and analytics capabilities. However, according to Everest Group, 52% of organizations who are considering direct sourcing cite the lack of technology integration between permanent and contingent tools as a challenge they are currently facing or anticipate facing. Integrating your existing VMS and ATS into one analytics platform is a must for total talent management in order to gain insight into both your permanent and contingent openings.
Conclusion
As the world of work continues to evolve, direct sourcing is poised to play an increasingly important role for organizations aiming to streamline their total talent acquisition processes and attract the best candidates.
As you consider implementing direct sourcing in your organization, remember that while the human touch remains invaluable, technology is a crucial enabler. Industry leading direct sourcing solutions are AI-powered, combining cutting-edge technology with expert talent curation and engagement strategies.
By embracing this approach, organizations can position themselves at the forefront of talent acquisition innovation, ready to attract and engage the best contingent and permanent talent in an increasingly competitive landscape.
Contingent Workforce Solution Opens the Door to a $500K Cost Savings & a Total Talent Solution
PeopleScout helped a leading door and window manufacturer achieve a $500K cost savings within twelve months of launching an effective MSP program. Plus, PeopleScout introduced Recruiter On-Demand™ to support an increase in demand for permanent recruitment, as part of a total talent solution.
1,500Annual contingent hires
500,000Dollars in cost savings in the first year
250Full-time hires over 11 months
Situation
PeopleScout has partnered with this door and window manufacturer since 2017, providing Managed Service Provider (MSP) support for contingent talent solutions in the areas of light industrial, technology and professional roles. Initially, PeopleScout supported locations in the U.S. only, but in 2021 expanded into Canada, playing a key role in supplier vetting, contract negotiations, data collection and manager and supplier trainings.
The organization was also having challenges filling full-time roles, providing the opportunity for PeopleScout to supplement their contingent staffing support with our Recruiter On-Demand™ solution.
Solution
Over the course of this partnership, PeopleScout’s MSP team has made several technology and process improvements, including a vendor management system (VMS) transition, streamlined documentation requirements, a new approach for managing and improving supplier performance, and a candidate experience assessment.
The team also collaborated with PeopleScout’s Recruiter On-Demand™ (ROD) team to conduct a discovery session to understand the primary areas of increasing demand for full-time roles. Together, the teams developed and implemented an ROD strategy, focused on ten primary locations. The ROD solution included a daily applicant tracker for client visibility into the talent pipeline, and marketing and employer brand support. PeopleScout’s recruiters sourced qualified candidates, who were then interviewed by the client’s hiring managers.
The candidate experience assessment, conducted by PeopleScout’s technical solutions architects, identified opportunities to improve the look and feel of the organization’s careers site, particularly to appeal more to full-time candidates.
Results
The updates PeopleScout has made to the client’s technology and documentation processes have eliminated administrative burdens on both suppliers and hiring managers. The MSP solution achieved cost savings of more than $500,000 in the first year alone.
PeopleScout also seamlessly integrated a Recruiter-On-Demand™ program to support full-time hiring needs, as part of a total talent solution for the door and window manufacturer. The ROD program generated 250 hires over just 11 months across the selected 10 locations.
At a Glance
COMPANY: Door and Window Manufacturer
INDUSTRY: Manufacturing
PEOPLESCOUT SOLUTIONS: Recruitment Process Outsourcing, Managed Service Program, Total Talent
ANNUAL HIRES: 1,500 contingent hires and 250 full-time hires
Global talent solutions providing unmatched scalability to meet the professional, specialist, volume and contingent hiring needs of organizations of all sizes and sectors.
In a world where the talent market is constantly evolving, PeopleScout knows that cultivating deeper, more meaningful connections is imperative. Now, as we unveil a refreshed identity, we build on the service we’ve delivered for over 30 years, delivering more insights, more imagination and more integrity.
Connect More™ is our guiding principle. It reflects our unique approach that blends experience, insight and action to help employers build powerful connections with talent.
We’re redefining what it means to a be talent acquisition partner.
Too often we hear from clients about experiences they’ve had with other talent solutions providers in which one thing was said during the sales pitch only to have the stakes change once the ink was dry. Or times they’ve been forced into cookie-cutter processes that don’t support their unique needs.
That’s why at PeopleScout we strive to do the opposite. We believe in keeping promises. We believe that listening creates a better experience and leads to better outcomes. We’re not perfect, but if we mess up, we make it right.
We’re proud and humbled to say that this philosophy has led to some of the most enduring client relationships in the talent acquisition space—a testament to our commitment to creating connections that are truly meaningful.
PeopleScout’s refreshed brand is grounded in differentiators that drive tangible value for our clients:
Proven Delivery
For over 30 years, PeopleScout has built our services on integrity, building trust through transparent communication and a proven track record of success.
What That Means for You:
You get a talent partner like no other to help you tackle your workforce challenges—large and small. Plus, as part of the TrueBlue family of brands, we are uniquely positioned to handle complex talent programs like no other firm in the world.
Meaningful Connections
PeopleScout has the demonstrated ability to connect with the most sought-after talent. From software engineers to neonatal nurses. From Seattle to Singapore.
With one of the largest in-house talent advisory teams in the industry, we’ve got a wide range of experience with talent audiences across industries, skill sets, demographics and geographies. We are problem-solvers, creatives, organizational psychologists and operational experts.
What That Means for You:
Whether you need an award-winning candidate attraction campaign, a differentiated employer brand, market insights to fuel big decisions, a memorable candidate assessment experience or DE&I consulting—we have fresh ideas to help you stand out as an employer of choice.
Data & Insights
Sometimes you don’t know what you don’t know. We’re dedicated to arming you with the sharable, digestible insights you need to tell the right stories in your business so you can stand out and get ahead.
What That Means for You:
You can capitalize on the latest market analysis, AI tools, thought leadership and competitive intelligence to supercharge your people strategy.
Human Touch
We bring a personal touch to our engagement with passive candidates that ignites excitement about your opportunities. From the second we grab the candidate’s attention to the minute they walk through the door—we deliver a seamless candidate experience that turns applicants into advocates.
What That Means for You:
Whether you need to fill executive, leadership or niche roles our global search teams deliver top-notch, future-ready talent.
Digital Transformation
As digital transformation reaches talent acquisition, we’re helping our clients get ahead. Affinix™, PeopleScout’s proprietary talent technology suite, provides candidates with a digital-first experience and leverages AI, automation and data analytics to remove friction and improve outcomes. Plus, we’re on top of the latest tech solutions, testing new ways that AI and machine learning can create results for our clients.
What That Means for You:
You get an upgraded tech-stack that delivers a consumer-like, mobile-first experience for candidates and a frictionless, informed journey for hiring managers.
Ultimate Scalability
We’ve scaled up to handle the full-cycle, global recruitment of tens of thousands of annual hires for one of the world’s largest hotel brands. We’ve scaled down to hire a few dozen specialist engineers for an automotive start up. And we’ve handled everything in between.
What That Means for You:
Whether you need specialty, professional, volume or contingent hiring solutions—our unique blend of insight, creativity and technology creates an employer brand-steeped candidate experience talent will never forget.
Speed and Agility
In this tumultuous era, talent acquisition teams are struggling to respond quickly to sudden fluctuations and hiring peaks. That’s why we’ve created flexible solutions like Accelerate™ and Amplifiers™. Purpose-built for modern talent programs, our solutions provide employers with the agility required to compete in today’s talent market, address immediate hiring needs and deliver results faster.
What That Means for You:
You get focused support for peak hiring, hard-to-fill positions, compressed time frames and more—however it works best for you—without the lengthy implementation.
Value
Organizations of all sizes trust PeopleScout’s efficient recruiting processes and quick-deploy solutions that improve time-to-hire and retention rates, delivering the best talent matches and maximizing ROI.
What That Means for You:
We measure our every move, idea and recommendation—so you know you’re spending your budget where it matters most.
Diversity, Equity & Inclusion (DE&I)
DE&I is top of mind for talent leaders, including all of us at PeopleScout. While much progress has been made, there’s still work to be done. That’s why every PeopleScout solution has a DE&I component. PeopleScout integrates DE&I best practices into every solution, helping clients build a more diverse and inclusive workforce.
What That Means for You:
We’ll help you gain a better grasp of where you are, where you need improvement and how to find the right path forward.
Are You Ready to Elevate Your Connection with Talent?
Situation PeopleScout has partnered with this door and window manufacturer since 2017, providing Managed Service Provider (MSP) support for contingent talent solutions in the areas of light industrial, technology and professional roles. Initially, PeopleScout supported locations in the U.S. only, but in 2021 expanded into Canada, playing a key role in supplier vetting, contract negotiations, data…
Our latest research shows a detailed picture of the current state of skills in the global workforce and how HR leaders are preparing for the impending skills crisis
Artificial intelligence (AI) has captured attention across nearly every industry for its seemingly boundless potential to transform how work gets done—including AI in recruiting. Yet for many talent acquisition (TA) leaders, AI remains shrouded in hype, myths and even fear that “robot recruiters” are taking over.
This handbook sets out to demystify AI tools for recruitment with facts about real-world applications across talent acquisition capabilities and provide guidance on how talent teams can start planning to use AI effectively and ethically. We’ll cut through the hype to bring AI down to earth—focusing on what works, not what’s flashy.
The message we want to reinforce upfront is that AI should not be seen as a replacement for the talent acquisition strategy you’ve already built, but rather a set of tools to make your teams better at tasks both mundane and meaningful.
📌 Before we go any further, here’s a note from our legal team:
The information provided in this article does not, and is not intended to, constitute legal or other professional advice; instead, all information, content, and materials available in this article are for general information purposes only. Readers of this article should contact their attorney or legal advisor to obtain advice with respect to any particular legal matter. No reader of this article should act or refrain from acting on the basis of information in this article without first seeking legal advice from counsel in the relevant jurisdiction. All liability with respect to actions taken or not taken based on the contents of this article are expressly disclaimed by PeopleScout, Inc.. The content in this article is provided “as-is”, and no representations are made by PeopleScout that the content is error-free.
What is AI?
The term artificial intelligence or AI was coined by Stanford Professor John McCarthy, who defined it as “the science and engineering of making intelligent machines, especially intelligent computer programs.” AI is technology with the ability to perform tasks that would otherwise require human intelligence. Data and algorithms enable AI to “learn” how to accomplish complex tasks without being explicitly programmed to do them. It also includes the sub-fields of machine learning, speech and natural language processing and robotic process automation.
Over the last decade, AI capabilities have advanced tremendously due to increases in computing power, the abundance of digital data and improvements in machine learning algorithms. As a result, AI solutions can now match or even outperform humans in certain tasks related to object recognition, language processing, prediction modelling and more.
The disruption delivered by generative AI in particular arrived like a bullet train. In just a few short months, AI went from an abstract concept to a tangible force radically impacting businesses—and jobs—worldwide. With Generative AI (GAI) tools like ChatGPT, Google Gemini (formerly Bard) and Microsoft Copilot, AI has gone from expensive and exclusive to an everyday tool accessible by the masses.
The State of AI in Recruiting
Top talent has become increasingly scarce and competitive, while recruiting resources and budgets remain strained. This situation demands that talent acquisition teams work smarter, and AI and automation could represent an opportunity for organizations to enhance human capabilities in recruitment.
According to Gartner, a massive 81% of HR leaders have explored or implemented AI solutions to improve process efficiency within their organization. HR leaders aim to use generative AI (GAI) for improving efficiency in HR processes (63%), enhancing the employee experience (52%) and bolstering learning and development programs. Plus, 76% of HR leaders believe that if their organization does not adopt AI solutions in the next year or two, they will lag behind those that do.
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What are the Advantages and Disadvantages of AI in Recruitment?
While AI holds tremendous promise, it also comes with some real concerns which talent acquisition and HR leaders must thoughtfully address. AI is largely unregulated and has received criticism for negative impacts on things like privacy, security, bias, and transparency in its decision-making processes. However, with care and diligence, you can establish sensible guidelines at your organization, so this technology enhances your talent acquisition capabilities while respecting human values.
Benefits of AI for Recruiting
AI can help the humans behind your talent program work more efficiently and effectively when used correctly. Applying AI across the various recruiting stages introduces a host of benefits, including:
Efficiency AI-powered tools can shoulder time-consuming tasks like communications and initial screening, allowing recruiters to reach more candidates at scale. AI systems help recruiters to focus their efforts on the most promising prospects, including helping identify passive candidates. This wider reach improves quality by putting recruiters in front of more qualified candidates.
Improved Candidate Experience Tools like AI chatbots and self-scheduling create a seamless 24/7 candidate experience. By fielding frequently asked questions and coordinating interviews, they dramatically reduce time-to-hire. Candidates get quick responses instead of waiting for recruiters to come online, making the hiring process faster and frictionless.
Improved Matching Advanced AI algorithms surface qualified prospects that may have been overlooked. By analyzing candidates’ skills, experience, and other attributes and matching them to open roles, AI systems ensure better candidate-job fit. This improves quality-of-hire and unlocks hidden talent pools recruiters may have missed.
Enhanced Diversity and Inclusion With the right data to learn from, AI reduces unconscious bias from hiring by focusing decisions on data rather than gut instinct. By objectively evaluating candidates’ skills without prejudice, AI-assisted recruiting enhances diversity and creates a more equitable hiring process.
Cost Reduction AI can reduce the cost-per-applicant in some cases. Recruiters can outsource low-impact, repetitive tasks to AI, and spend more time interacting with candidates and hiring managers. This optimization of talent acquisition teams enables resources to be allocated more efficiently, reducing vacancy rates and lowering costs.
Risks of AI in Recruiting
While there are benefits, talent leaders must thoughtfully address common concerns around AI transparency, interpretation of outputs, data privacy and ethics.
PeopleScout POV
PeopleScout is committed to striking the right balance between next-generation technology and maintaining the trust we’ve built with candidates and clients. As our clients’ trusted talent advisors, we do our due diligence and work touphold our standards for quality and compliance when helping clients adopt new technologies like GenAI.
As organizations prepare to capitalize on the efficiencies of AI, they must be particularly discerning about AI when it comes to supporting people decisions. Effectively deploying and scaling AI across talent acquisition functions introduces some common challenges, including:
Biased Algorithms Despite its ability to reduce bias, if AI models are trained on biased or incomplete data sets, they can unintentionally perpetuate inequality. In many countries there are laws prohibiting discrimination in the recruitment process, and the use of AI must align with these laws. Leaders need oversight into data inputs and must remain vigilant when considering recommendations made by AI. That being said, bias in AI can be corrected much easier than bias amongst humans. Proactively monitoring and mitigating possible areas of bias is essential for driving more inclusive, equitable hiring—regardless of whether AI is involved.
Disproportionate Impact Certain demographic groups face higher exposure to the potential harms of AI in recruitment. For instance, if an AI screening system relies heavily on standardized test scores that have racial biases, it could automatically filter out qualified minority candidates. Similarly, lower income communities may lack access to the digital tools and internet connectivity required for AI screening. This digital divide could automatically exclude qualified candidates from disadvantaged backgrounds. Without proactive measures to address these systemic issues, AI recruitment tools risk amplifying real-world inequality. Organizations must consider disproportionate impact with their use of AI in order to improve diversity and reinforce equity.
Lack of Transparency Organizations may experience resistance amongst candidates and employees when there is a lack of understanding of how AI is being used in the hiring process and how AI arrives at certain outputs or recommendations. You can nurture trust through training and effective communication to help recruiters, hiring managers and applicants understand the reasons behind AI-generated outcomes and their role in the hiring decision-making process. Use clear and understandable language to describe the factors influencing decisions and put mechanisms in place to capture feedback and reporting of potential issues. Transparency promotes ethical AI use in recruitment and also reinforces organizational values and establishes a positive reputation in the industry.
Data from Pew Research Center shows that 61% of Americans are unaware that employers are currently using AI in the hiring process. A majority (71%) oppose AI making a final hiring decision, while 41% oppose AI being used to review applications. However, the more people understand about AI, the more they’re in favor of its use in the recruitment process. For example, 43% of those who’ve heard a lot about using AI in the hiring process support its use for reviewing applications, compared with 37% who’ve heard a little and 21% who’ve heard nothing at all.
Lack of Accuracy GAI is prone to making up statistics, sources and even case law—known as hallucinating. There are no safeguards in place to validate the generated content or to check the accuracy or appropriateness of the outcome. Organizations leveraging tools like ChatGPT for recruiting open themselves up to risks. Recruiters must be aware of the importance of the human touch and using their judgement when using GAI tools for creating content and communications.
Over-Automation Heavy reliance on AI also poses risks if the recruitment process becomes overly automated and fails to incorporate sound human judgment as a check. Too much automated communication can feel depersonalized to a candidate. AI should never replace the human touch—rather it should enhance human capabilities. Plus, companies using AI for recruitment must ensure compliance with all relevant regulations. For example, under GDPR, there are strict guidelines around automated decision-making, and individuals have the right to obtain human intervention and contest automated decisions that significantly affect them.
Data Privacy Issues Collecting and analyzing extensive candidate information required by AI systems can raise concerns around consent, data protection, and ethical usage. Any talent data feeding the AI systems must be compliant with regulations, like GDPR and CCPA, that are relevant to your locations. Organizations should create a framework around the usage of AI recruitment tools to provide transparency around what data you’re collecting, gain consent where applicable, and put access controls and encryption in place to protect sensitive candidate information. Your data security team should vet any AI usage to ensure candidate data is not being scraped for other uses.
Workflow Integration Implementing AI recruiting tools requires integrating them into existing systems and processes. Too often, companies adopt AI in isolation, without considering its impact on surrounding workflows. Instead, organizations should evaluate how AI technologies will interface with current infrastructure. For example, your applicant tracking system (ATS) may need API connections to import AI-screened candidates. With careful integration planning, AI can be a seamless augmentation to talent acquisition rather than an isolated add-on.
Proactively addressing these concerns through governance, oversight and continuous improvement of AI systems and processes is key to managing the risks responsibly. Overall, the use of AI in recruitment is permitted but becoming more and more tightly regulated. Systems cannot make final hiring decisions and must be transparent, fair and accountable. Adhering to data protection laws and anti-discrimination regulations is crucial for the ethical use of AI in hiring. Undergoing regular audits to assess for unintended bias and maintaining the human touch to review, override or contest automated recommendations is crucial.
📌 We recommend you consult your legal team before implementing any AI technologies at your organization.
Use Cases for AI in Recruitment
As recruiting grows more competitive, organizations are turning to smart technologies to gain an edge in attracting and engaging candidates. From chatbots to video interviews and skills assessments, AI-powered solutions are streamlining efficiencies while enabling deeper insights across the hiring funnel. Here are some examples demonstrating AI’s immense potential to boost recruiting outcomes while improving the candidate experience.
How to Use AI for Candidate Attraction and Sourcing
Identifying, contacting and engaging prospective candidates is ripe for AI augmentation. Building a robust pipeline of talent typically involves highly manual, repetitive tasks that can divert focus away from higher-value tasks. Here are some of the ways AI can support you in filling your recruitment funnel.
Building Candidate Personas
AI can pull from the profiles of existing employees and historical hiring data for a given role to surface patterns and common characteristics. These patterns, combined with qualitative data gathered from interviews, can help you to define a persona profile of the ideal candidate for the role.
A persona is a fictional character profile that represents the different types of candidates who would be successful in a role. Personas focus on individual characteristics, behaviors, interests, goals, motivators and challenges. With these in place, you can create alignment across your recruitment and sourcing strategies. Your persona profiles should provide specific guidance about how to find candidates who fit the profile, including targeted messages that will resonate.
Since launching in late 2022, ChatGPT and other GAI chatbots, like Bing Chat, Gemini (formerly Bard) and more, quickly permeated the workplace. These tools mimic human communication and can help with everything from content creation and market analysis to simply writing emails. They can also be used to write job descriptions.
By feeding them with relevant prompts that detail the job tasks and required skills as well as employer brand elements like tone of voice, the GAI chatbot can produce a first draft job description in seconds. The hiring manager and recruiter can then massage this text to create the final posting.
For existing job descriptions, AI can be used to measure sentiment and detect biased language. There are a variety of AI-powered online tools that can highlight biased language—like “ambitious” or “expert,” which are stereotypically masculine—to ensure you’re not turning off a portion of your talent audience.
Previously a manual process, AI can sift through a huge number of online profiles to find candidates with the skills you’re looking for. For example, the AI-powered Affinix CRM tool in PeopleScout’s talent acquisition suite Affinix searches millions of online profiles to find passive candidates with the skills and competencies that match the role. The AI also assesses the likelihood of a candidate being open to a new opportunity by combining the average tenure of each job listed on their profile with the average aggregate tenure of all other candidates in that same role.
Manually identifying passive candidates who have similar titles but may not be actively searching for a job can take hours of dedicated time. AI can reduce manual efforts and massively speed up the recruitment process. Plus, it helps you concentrate on skills, rather than experience, to expand your candidate pool.
Predictive Analytics
Machine learning models can also provide predictive and prescriptive hiring recommendations based on a candidate’s profile. AI can assess genuine interest, candidate motivations, likelihood to accept an offer and even predicted tenure. This empowers recruiters to be more informed for interview prep and can help them personalize outreach messages to appeal specifically to what matters most for each candidate.
Over time as engagement data is captured, AI models continue to improve, learning what messages and channels persuade candidates with various profiles and career trajectories. This creates a positive feedback loop, compounding efficiencies over each recruiting cycle.
How to Use AI for Candidate Screening & Interview Support
Manual candidate screening based on résumés and CVs alone can be an imperfect, biased exercise. With AI lending a “second pair of eyes,” you can ensure quality candidates are not being overlooked. Here are some elements of the process that AI can enhance.
First Sift
Natural language processing tools can ingest thousands of résumés and CVs, and analyze the content, context, and trends across the talent pool within seconds. AI tools can be trained to recognize specific skills, experiences and competencies that are required for open roles and then score and rank applicants automatically against your ideal candidate profile.
Look for tools with a dashboard that highlights the “cream of the crop” candidates that demonstrate the closest alignment, enabling you to reach out or pass the most promising applicants to hiring managers quickly.
Real-Time Screening
Intelligent chatbots, like text and SMS screening tools, create a conversational experience for candidates using natural language processing. These mobile-friendly, text interview tools automatically screen candidates using predetermined questions that gauge their interest and qualifications. Based on the responses, the chatbot can instantly determine the next step for each specific candidate.
AI is also leveraged for pre-employment assessments. New tech platforms can test and measure candidates for skills mastery, personality traits, and cognitive abilities to ensure qualified candidates are advancing through the recruitment process. All results should be reviewed by a human to ensure compliance with relevant regulations around automated decision-making. Leveraging AI in skills assessment helps ensure recruiters and hiring managers can focus on priority candidates most likely to succeed in the role, increasing equity along the way.
Want to learn more about how AI can boost your recruitment processes?
AI-powered candidate engagement tools help you create seamless, personalized experiences at scale—boosting candidate satisfaction, accelerating the hiring process and freeing up recruiters to focus on relationship building—where they add the most value.
Personalized Candidate Communications
For several years now, organizations have been leveraging candidate relationship management (CRM) technology to automate communications with candidates throughout the hiring journey. Automated email drip campaigns deliver the right information at the right stage in the journey to keep candidates informed of next steps and engaged with content that is relevant to them. This helps you build personalized engagement at scale.
More recently, recruiters are using GAI platforms like ChatGPT to help them with drafting one-off emails to candidates. Leveraging the appropriate prompts, a recruiter can get a first draft from ChatGPT which they can then review and edit to fit for specific candidates. This has the potential to save hours’ worth of work each week for your talent acquisition team.
Chatbots
Chatbots leverage natural language processing to manage various high-volume, repetitive inquiries from candidates. Whether answering frequently asked questions (FAQs) about application status, the interview process, the company or the job role, chatbots provide consistent, accurate responses 24/7—especially relevant when recruiters aren’t working. This improves candidate satisfaction while enabling recruiters to focus on higher-value activities.
Intelligent messaging platforms can initiate one-way communications at scale to nurture candidates. Using data on the prospect, role, process stage and more, AI writing assistants dynamically generate personalized, thoughtful messages. This level of personalization improves candidate engagement, advances candidates quicker through the funnel and strengthens employment brand affinity.
Calendar management bots can take over the time-consuming back-and-forth of scheduling interviews, assessments, site visits and more. By integrating with hiring manager calendars, only convenient time slots are shown to candidates. Candidates automatically receive confirmations and reminders, eliminating this task for recruiters and increasing the likelihood of candidates attending interviews.
How to Get Started with AI in Recruiting
Your steps into AI should focus on exploration rather than big integrations. AI in recruitment is fast-moving and receiving more and more scrutiny from law makers, and an RPO (recruitment process outsourcing) partner can act as a strategic advisor on your AI recruiting journey. RPOs have experience implementing recruitment tech like AI software for clients and can advise on the best options for your needs, integration requirements, data needs, ethical usage, and workflow design.
By leveraging RPO expertise, companies can effectively implement AI-enhanced hiring with less disruption and a faster return on investment. Look for a partner that is moving at your speed when it comes to AI in recruiting. They’ll help you identify areas for quick wins, and help you expand this success through experimentation and testing.
Here are some ways an RPO partner can help your explore AI for recruitment:
Change Management: RPOs can ease the transition to automated processes and drive adoption through training and ongoing support. They can also develop training programs to upskill your in-house recruiters on using AI tools effectively and ethically in accordance with your internal AI policies.
Process Design: RPOs can redesign recruitment workflows to integrate AI tools. For example, PeopleScout’s Talent Diagnostic examines your talent lifecycle, evaluating your employer brand and your attraction strategy, as well as looking for ways to optimize the candidate experience through technology usage.
Ongoing Optimization: RPOs can continuously monitor and evaluate AI outputs and fine-tune processes. These insights will help you improve outcomes over time.
Compliance Monitoring: RPOs stay current on regulations affecting AI in recruiting to advise on lawful and ethical usage in conjunction with your internal legal team.
AI in Recruiting: Potential and Responsibility
AI has demonstrated tremendous potential to transform talent acquisition. As this handbook outlines, it’s no longer just hype, rather it’s delivering real impact across sourcing, screening, interviewing and candidate engagement.
The results you’ll experience from AI depend heavily on factors like data quality, transparency, integration with existing systems and processes, and governance to ensure responsible usage. AI solutions are meant to augment—not replace—the human touch in recruitment. Recruiters are invaluable when it comes to relationship building, coaching and negotiation, and AI can’t replicate what makes them uniquely human.
Looking ahead, the use of AI recruiting technology to connect people to purpose will only continue expanding. Cultivating an ethical, inclusive and values-based recruiting culture remains key when it comes to attracting employees who align with your organization’s mission. With human stewardship over AI in recruiting, the future of talent acquisition looks bright.
Healthcare organizations face a number of unique recruitment challenges compared to other industries. Finding and attracting candidates with the specific clinical, medical, and administrative skills required is an ongoing battle, especially for critical roles like nurses, physicians and specialist practitioners. With a large portion of the healthcare workforce reaching retirement age, an older population demanding more healthcare services, and new technology shifting the skills needed in the healthcare workforce, a skills shortage in healthcare is growing rapidly.
Healthcare organizations must plan now for the future by undertaking comprehensive workforce planning, establishing a robust talent pipeline, focusing on retaining their current workers and appealing to the younger generations to step into those roles.
The Healthcare Talent Landscape
The healthcare industry faces an uphill battle when it comes to recruitment and staffing. A perfect storm of factors, including an aging population, workforce shortages across multiple disciplines, and a global pandemic that has stretched resources to the breaking point, has created immense challenges. Healthcare organizations must navigate a highly competitive recruitment landscape to attract and retain top talent. Additionally, new healthcare roles are emerging that require specialized skill sets, further complicating hiring efforts. In this constantly evolving climate, understanding the current healthcare recruitment landscape is crucial for organizations looking to build a strong, sustainable workforce.
Dig Deeper
How RPO Can Solve The Top Challenges In Healthcare Talent Acquisition
People are living longer, and as Baby Boomers age, the demand for health services, including home health services, long-term and aged care, is increasing. Chronic conditions like heart disease, diabetes, cancer are becoming more common with nearly half of the American population suffering from a chronic illness.
An older and sicker population is putting pressure on healthcare workers, especially those in clinical roles like nurses, physicians, health aides and therapists. Plus, demand is high for cardiovascular technologists, clinical lab technicians and other allied healthcare professionals who operate specialized equipment to diagnose and treat chronic conditions. Attracting and retaining top healthcare talent has never been more competitive, with demand increasing in both acute care and community settings, including large health systems, public health organizations, tech companies moving into healthcare, travel nursing firms, long-term care facilities, the military, healthcare research, mental health agencies, insurance and managed care companies, and even other industries.
Talent Supply Can’t Keep Up with Demand
The increase in demand seems to coincide with a healthcare talent shortage. The Bureau of Labor Statistics (BLS) projects that the country will face a shortage of 195,400 nurses by the 2031. Plus, a shift towards home-based care means the shortage of home health aides is projected to grow significantly. The BLS predicts that the number of openings for home health and personal health roles will increase 37% by 2028.
With home-based and long-term care growing, the U.S. healthcare system is also experiencing shortages for occupations like physical therapists and occupational therapists. Plus, these facilities find recruiting and retaining nursing assistants, care aides and direct care workers increasingly difficult due to low wages, demanding work and limited career advancement opportunities.
Retirement and Burnout Create Retention Issues
The challenges surrounding the skills shortage in healthcare are exacerbated by healthcare professionals exiting the workforce in droves. Experienced nurses, doctors and other clinicians are retiring and leaving patient care roles, resulting in the loss of crucial knowledge and experience for healthcare systems.
According to the American Association of Colleges of Nursing the median age of a Registered Nurse (RN) is 46 years old. Plus, more than a quarter of RNs report they plan to retire or leave nursing over the next five years. The rates of RN turnover in the United States have ticked up over recent years, growing from 17% in 2017 to 26% by 2021.
Driven by the strain of the pandemic and a shrinking workforce, many healthcare workers are experiencing burnout. According to the Medscape National Physician Burnout and Suicide Report, the average burnout rates for nurses and physicians in the US is 40%.
Burnout also has an impact on patient care. According to Nursing Times, about half of midwives say they’re afraid of making a mistake because they’re exhausted.
Innovation is Shifting the Skills Shortage in Healthcare
As care delivery models have shifted, there is a growing need for nurses and staff with specialized skills and experience. Use of telemedicine and virtual care expanded during COVID-19 and is continuing to rise as a way to improve access to healthcare. Digital disruptor Amazon recently completed an acquisition of One Medical and is now offering a new model of digital “concierge” or “membership” healthcare.
In addition, new innovations in digital health (think personal health tracking apps or wearables), med-tech, genomics, precision medicine, AI and more are transforming healthcare and shifting the necessary skills in the healthcare workforce.
Rising Labor Costs are Adding to the Strain on Healthcare Organizations
With nationwide labor shortages and inflation, healthcare organizations face rising costs for salaries, benefits and contract staffing. In all industries, workers are requiring more competitive compensation, benefits and perks to be enticed. This puts a particular strain on healthcare organizations where staffing is literally a matter of life and death.
High turnover among certified nursing assistants drives up costs for long-term care facilities and impacts quality of care. In order to keep high patient care standards and staff shortages, the U.S. healthcare system relies heavily on costly contract and travel nurses and other providers which further drives up labor costs for hospitals. In fact, contract labor expenses have risen more than 250% over the past three years.
Addressing the Skills Shortage in Healthcare
Addressing the skills shortage in healthcare requires a multi-pronged approach—improving workforce planning, enhancing recruitment and retention efforts, and elevating the perception of healthcare careers for the next generation.
Workforce Planning
To effectively respond to the changing healthcare talent landscape, organizations must take proactive steps to plan for their future needs. The future will look different for every organization. Healthcare organizations in Florida and the Southwest, where there are large numbers of retirees, will have different staffing needs than organizations in trendy urban areas in the Pacific Northwest or East Coast where the population tends to be younger and healthier. Region also makes a difference in attracting candidates, as rural health systems are already struggling to fill positions. Healthcare organizations should know what their needs will be in the coming years and what challenges they’ll face attracting workers.
Data analytics is a valuable tool for workforce planning. The American Hospital Association recommends that organizations analyze data including current workforce demographics, potential future workforce requirements, and factors impacting the data, like the increasing popularity of walk-in clinics, telehealth services and digital healthcare models. Predictive and prescriptive analytics tools can help healthcare organizations plan for future needs and evaluate how different decisions will impact those hiring needs. According to SHRM, this type of workforce planning can save money by eliminating issues with understaffing and overstaffing. Predictions can provide organizations with a clearer view of how and when different talent gaps will impact them. Armed with that information, healthcare organizations can make informed decisions when it comes to forming partnerships, increasing retention and reaching out to younger workers.
Building Talent Pipelines
A key strategy for combating the the skills shortage in healthcare will be convincing more people to enter the healthcare industry. Too often, HR leaders at organizations only think of potential candidates through a narrow lens. They focus on the people who already work in the industry and who already have the education and skills to be a nurse, medical technician or phlebotomist. There aren’t enough people already in those pipelines to fill the talent gap. Healthcare organizations need to think broad and start focusing on the young people who are considering a career in healthcare. They need to start marketing to these candidates earlier than ever before.
The American Hospital Association recommends that healthcare organizations establish community pipelines by partnering with high schools, colleges and other academic institutions. Through these partnerships, healthcare organizations can start engaging with future candidates earlier than ever and help drive young people to the healthcare industry. Partnerships can also create more candidates in a geographical region with a specific set of skills. According to the American Association of Colleges of Nursing, a partnership in Minnesota between the University of Minnesota and the VA Healthcare system helped expand enrollment in the university’s nursing program and increased the program’s focus on veteran care. The program ensures more graduates in Minnesota with the skills necessary to care for veterans. Healthcare organizations should form these partnerships strategically, using their workforce planning predictions to understand which types of positions will have the greatest demand and where these partnerships can have the biggest impact.
Focusing on Retention
HR leaders at healthcare organizations are grappling with the stresses the skills shortage in healthcare is creating for their current employees . Understaffing creates larger workloads and longer hours. According to CareerBuilder, 70% of nurses say they feel burnt out in their current job and more than half rate their stress level as “high.” According to Medscape, only 56% of nurses would choose their career if they had a chance to start over again. If current health care workers are stressed, burned out and regretting their career choice, that could harm the talent pipeline. Healthcare organizations cannot afford to lose younger nurses due to stress or burnout.
Healthcare organizations will have to face the challenges of burnout head on to retain their workers. Healthcare Dive offers tips for ways HR professionals can help, including making your staff aware of the signs of burnout and teaching self-care strategies. Wellness among the healthcare workforce must be a priority. Some healthcare organizations have created quiet rooms stocked with yoga mats and massage chairs where nurses can go during their shifts to take a break. CareerBuilder recommends offering a flexible work environment, encouraging exercise, establishing an open-door policy, offering mental health tools and focusing on continued education.
While an expensive option, contract healthcare providers can also help ease the burden on understaff facilities. PRN, or “pro re nata,” positions are growing in popularity throughout the entire healthcare industry. The positions are typically part-time, as needed, and many healthcare workers are turning to these roles for the flexibility, rather than taking full-time positions. Healthcare organizations can use PRN workers to cover understaffed shifts, which can lift some of the burden on permanent employees.
Appealing to Younger Workers
Healthcare organizations are competing for the best of the limited talent pool. To succeed in attracting candidates, healthcare organizations must build a strong employer brand and meet the needs of millennial and Generation Z workers.
What do millennials want? Countless writers have tried to answer that question, but Harvard Business Review reports millennials aren’t necessarily all that different from older generations. They want good managers, interesting work and the opportunity to learn and grow. Like many other generations, they want to make a positive impact and help solve social and environmental challenges. By its nature, a career in healthcare can provide that. One thing that does set millennials apart from earlier generations is an increased debt burden due to higher education costs. Some financial experts recommend that organizations consider new benefits packages that offer student debt repayment to lure millennial workers.
As for Generation Z, the oldest members are just starting to enter the workforce, but experts say to be prepared for a cohort of workers well versed in technology. According to Forbes, in addition to being technologically savvy, members of Gen Z are also entrepreneurial and serious-minded after watching the impact of the Great Recession, so organizations should expect creativity and offer continuing educational opportunities. Harvard Business Review recommends reaching Gen Z candidates where they are—on mobile devices. Authenticity and personalization are also important to this segment of the workforce, as they’ve grown up bombarded with personalized advertisements online.
Engaging an Expert to Tackle the Skills Shortage in Healthcare
As they work to manage the growing skills shortage in healthcare, healthcare organizations are turning to experts in healthcare RPO, MSP and Total Workforce Solutions for healthcare staffing support. As you plan for the future, a talent partner can help provide a view of the whole talent spectrum, finding the right mix of both full-time and contingent workers. As the gig economy grows in popularity and more healthcare workers turn to contingent work, a talent acquisition partner can also ensure compliance on legal issues. Healthcare organizations should seek out partners with the right experience to tackle the specific needs of the industry.
A partner with a depth of data analytics experience can help develop a unique plan that addresses the needs, region and demographics of your individual healthcare organization. Data expertise can also help organizations determine why current employees leave and predict which changes could make the biggest differences in employee retention.
Healthcare organizations should also look for a partner with strong experience in building candidate-centered application processes and employer branding. As healthcare organizations compete for talent, a candidate-centered process and strong employer brand will help bring in the millennial and Gen Z workers.
