Is active sourcing more than just a trend?

Finding good skilled workers is not easy these days. In some sectors, the market is virtually empty. Some are even facing a real shortage of skilled workers. If you want to remain competitive, you can't avoid proactively approaching candidates. According to a recruiting study by the job placement platform Monster, one in ten positions is now filled via active sourcing. This article explains how this recruiting method works, what advantages it offers and what needs to be considered.

The concept: actively approaching potential candidates

Active sourcing turns the current recruiting model on its head: it is not the job seeker who applies to a company, but the employer who actively recruits qualified candidates. This approach is not new. Long before the advent of digital media and social networks, companies were gathering information about university graduates and identifying potential employees through headhunters.

The new media have multiplied the possibilities for active personnel acquisition. Offline has been supplemented by online. There are now a large number of channels through which companies themselves actively search for suitable candidates, approach them specifically and establish a personal relationship with potential employees. According to a study by the Institute of German Business, more than half (52 percent) of the companies surveyed use active sourcing to recruit sought-after specialists. Among SMEs, active sourcing is even the second most common recruiting method, with a usage rate of 49 percent (1). Instead of simply placing job ads and waiting for applications to arrive, HR managers approach suitable candidates in a targeted manner in order to win them over for the company.

The "Active Sourcing" Toolbox

Active sourcing basically takes place in two phases. The first phase is primarily concerned with the targeted search for candidates by compiling profiles with suitable qualifications. Once suitable candidates have been identified, the second phase involves establishing contact with the aim of arousing the candidate's interest in the vacant position. The preferred channels and methods vary depending on the size of the company, but also on the industry.

Personal networks

Personal networks are often a first approach to start active sourcing. Every company has contact with potential employees. It is worthwhile to group them together in so-called talent pools. Candidate databases are ideal for active sourcing. The advantage: You already know each other. Talent pools contain, for example, the profiles of former interns, working students, or even applicants who did not make the cut when a previous position was awarded. But even a well-filled talent pool is not inexhaustible.

Therefore, the direct contacts of employees are also a valuable source for active sourcing. Referral sourcing involves acquiring similarly highly qualified contacts for one's own company. This can also be supported by employee-recruitment programs.

Personal contact

Personal contact in active sourcing requires a lot of time and resources, but often leads to promising contract conclusions. In non-pandemic times, therefore, career events for students and recruitment fairs are among the most important active sourcing channels for corporations and large companies. Sympathy for the company is best expressed through the personal contact and establish targeted communication. Visitors to such events are also interested in professional topics and are usually looking for a job. Recruiters can quickly find out people's skills and interests in personal conversations and establish relationships.

Address on the Internet

Furthermore, in the mobile age, direct addressing on the internet is indispensable. Companies are making widespread use of the social media career networks Xing and Linkedin to actively search for candidates. This is because they encounter a particularly large number of potential employees here. The business networks offer the option of filtering user profiles by position, location, industry or specific qualifications. While many HR managers still search for suitable talent manually, active sourcing can also be automated using HR software. The degree of automation is still low, with an upward trend.

Another way to search for suitable candidates is to scour resume databases such as StepStone, Monster or Indeed. An open search via search engines such as Google can also be helpful. Depending on which professionals an employer is looking for, Facebook, hashtag searches on Twitter or, for attracting young people, Snapchat or TikTok platforms are also suitable for contacting potential employees. Messenger channels such as Slack or WhatsApp can also play a role in active recruitment.

Advantages and disadvantages of active sourcing

These are the advantages:

• Active recruitment focuses on the entire market - employees who are looking and employees who may be looking in the future. It makes it possible to address desired candidates directly.
• It binds potential employees and puts the company in the spotlight in the long term. The company can thus fill vacancies more quickly and respond immediately to staff shortages.
• Active sourcing reduces the time and cost of recruiting in the medium term.

These are the disadvantages:

• In order to find the right active sourcing channels for the relevant target group, it first takes a lot of time and research.
• Active sourcers should be trained and educated to ensure the most objective pre-selection and personal approach possible.
• Candidates can also be annoyed by active sourcing if the personal connection and an individual approach are missing, the job to be placed does not match the candidate's qualifications or they are contacted too frequently.

If you want to convince talent as a recruiter, you have to prepare well and address the candidate individually. This starts with the right salutation and the right name, but also with providing all necessary and helpful information. Recruiters should signal genuine interest, be authentic, and if the candidate doesn't get back to them, follow up promptly. Otherwise, potential employees will jump ship and keep the company in bad memory.

For whom is Active Sourcing worthwhile?

If you want to reach passive candidates who are not currently looking for a job, you should supplement your recruiting with active sourcing activities. Active sourcing offers the opportunity to identify and approach qualified and talented personnel at an early stage. Especially when a position is difficult to fill, it is advisable to use active sourcing to search for a suitable candidate. In this way, companies not only increase the number of applicants, but also improve the quality.

In summary: Active sourcing can be a valuable addition to the recruiting strategy for companies. It is an efficient method that ideally complements traditional recruitment. At the same time, the requirements in active sourcing are constantly changing. Therefore, there is no universal procedure with regard to the design of active sourcing. No matter which channels and methods recruiters choose to contact a candidate, the decisive factor is the individual and personal approach. But here, too, caution is called for! Are you still moving within the legal framework with regard to competition law and data protection, for example? Therefore, always observe the data protection guidelines and avoid private networks.

(1) Stippler, Sibylle; Burstedde, Alexander; Hering, Annina T.; Jansen,Anika; Pierenkemper, Sarah (2019) : Wie Unternehmen trotz Fachkräftemangel Mitarbeiterfinden, KOFA-Studie, No. 1/2019, Institut der deutschen Wirtschaft (IW), KompetenzzentrumFachkräftesicherung (KOFA), Cologne, p. 24.

Editor's note: In a previous article we referred to a white paper by Careerplus, which compiles important points of Active Sourcing.

Author:
Matthias Höfer is Managing Director of CLEVIS GmbH. For more than 10 years, he has been advising companies in the DACH region on HR digitization, HR strategy and transformation. www.clevis.de