The Emergence of Self-Sourcing Staffing

Jul 27th, 2016
The Emergence of Self-Sourcing Staffing

Like the VMS and MSP wave, the staffing industry is undergoing a major shift in it's view of self-sourcing staffing. The self-sourcing staffing wave evolved long ago with pioneers like guru.com and eLance establishing themselves for over a decade and other services emerging more recently covering all other stages of engaging a freelancer. These were the key categories in freelance and staffing that led companies to start believing in self-sourcing staffing models.

Global Freelance Talent Marketplaces- On-demand staffing marketplaces like oDesk/Upwork allowed companies to easily access curated freelancers from around the world instantly. Lots of small businesses began to rely on these services for everything from SEO to admin assistants. This then expanded to large companies starting to use them too.

Curated Freelancer Talent Pool- Then came freelancer management systems (FMS) like WorkMarket, OnForce, FieldNation that allowed companies to create their own private freelance talent pools so managers could benefit from a company's past experience with freelancers and engage them on a sporadic basis.

Contractor Management Platforms and Compliance - And finally there were transaction enablers including compliance specialists, payroll providers and MSPs like MBO Partners, ProUnlimited and ZeroChaos that allowed companies to find freelancers themselves and then payroll the contractor through these 'employer of record' companies to stay compliant and low risk.

Instant On-Demand Digital Labor Platforms- But more than anything, the wild success of on-demand labor platforms like Uber and TaskRabbit showed how powerful it can be to harness matching buyers and sellers more efficiently. This opened the eyes of consumers, freelancers and businesses about why they were still tolerating inefficient systems when things could be so efficient.

Contractor and Freelancer Onboarding platforms - As multiple on-demand labor marketplaces emerged, so did the need to process potential workers faster. Many new platforms like onboardiq, checkr focus on helping these new services conduct background checks, do hiring paperwork, tax and bank setup, etc.

The high bar is now set by Uber and everyone is expected to at least match it. All these separate but important trends have set self-sourcing onto a fast growing path.

This doesn't mean that self-sourcing is going to replace staffing agencies though. Read more about how self-sourcing and staffing agency models are actually complementary.

If you are a category manager interested in a self-sourcing contingent staffing program at your company read our tips on how to start self sourcing staffing.

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