Mastering Candidate Sourcing: Strategies for Recruiters and Talent Acquisition Managers

Sourcing is an important subset of the modern recruiting process. So, what is sourcing? The definition of sourcing is the process of identifying, engaging, qualifying and submitting candidates who would not have applied themselves. Having a continuous talent pipeline is the primary goal of sourcing, so that identified talent can quickly fill any openings. 

Effective sourcing leads to better hiring outcomes and improved candidate quality.  However, in today’s highly competitive job market, recruiters and hiring managers face significant challenges. 

This article covers effective sourcing strategies, best practices and tools to enhance your recruitment process. It discusses the development of sourcing in recent years and how it has become more proactive and data-driven and also explores the shift toward AI-assisted sourcing and its impact on the recruitment landscape.

What Is Candidate Sourcing?

Candidate sourcing is a proactive and strategic process of identifying, attracting, and engaging potential candidates for current and future job openings. It involves utilizing a variety of channels, including public databases, social media, professional networks, employee referrals, and direct outreach, to find individuals who match the organization’s target profile. Sourcing goes beyond simply searching for candidates; it focuses on building relationships with both active and passive candidates, generating interest in open positions and the organization, and creating talent pipelines for ongoing hiring needs. While screening may be involved, the primary focus of sourcing is on identifying and attracting potential candidates, rather than the more comprehensive evaluation process of recruitment.

Approximately 70% of the workforce consists of passive candidates not actively seeking work. Organizations operate with a talent pool of 30%. Sourcing is a proactive activity focused on engaging passive candidates in order to establish talent pipelines, creating a diverse candidate pool. 

More than just finding candidates, sourcing involves building relationships and nurturing talent for current and future roles. Sourcing in procurement has evolved to incorporate data-driven and AI-assisted technologies, including predictive analytics and machine learning, to improve the process.

The Importance of Sourcing in Talent Acquisition

Sourcing is crucial in modern talent acquisition because it: 

• Accesses a wider talent pool, including passive candidates who want challenging work and are up to date with technologies and industry developments. There’s no urgency to find a new job, so they’re generally more honest about their skills and experience. If they choose your company, it’ll be for the right reasons. 
• Improves the quality of hires by allowing hiring managers to focus on qualified prospects. Nearly 42% of the resumes HR managers receive are from unqualified candidates.  
• Reduces time-to-hire and cost-per-hire. The average time to hire for a new position is 36 to 52 days. However, HR managers can fill a role faster due to the pool of prequalified candidates. This shortens the time to hire and therefore the cost per hire. 
• Enhances employer branding by ensuring the company has a reputation of being trustworthy, fair and responsible. 
• Provides a better candidate experience since the HR managers previously screened the candidates and know who’s a good fit for the organization. This makes the hiring process more streamlined and focused.

Effective Candidate Sourcing Strategies

HR managers can use various sourcing strategies, such as:

1. Leveraging social media platforms such as LinkedIn, Twitter and GitHub. Nearly 94% of recruiters use social media to network and post jobs, and 84% of organizations use it for recruitment.  Almost 86% of job seekers use social media in their job search. 
2. Employee referral programs have the highest applicant-to-hire conversion rate at 3.9%, higher than job boards and career sites. 
3. Networking events and industry conferences are recruitment methods that allow recruiters to meet people face-to-face. Job- or industry-specific events and conferences can bring like-minded groups of people together. 
4. Utilization of AI and automation tools, such as predictive analytics, to identify candidates before they seek new opportunities, virtual reality recruitment events and AI-powered candidate matching.

Best Practices for Successful Candidate Sourcing

Some practices that recruiters and hiring managers should follow to maximize their sourcing efforts include: 

• Developing ideal candidate profiles
• Personalizing outreach messages
• Maintaining consistent and timely communication
• Building and nurturing relationships with potential candidates
• Using data-driven approaches to refine sourcing strategies
• Collaborating effectively with hiring managers
• Continuous updating and refining of sourcing techniques
• Ensuring diversity and inclusion in sourcing efforts

Tools and Technologies for Effective Sourcing

Various tools and technologies can enhance the sourcing process. Some of these tools include:

• Applicant tracking systems allow recruiters to review applicants and improve candidate experience by automating processes, scheduling interviews, parsing resumes and managing documentation.
• Candidate relationship management tools help recruiters manage and nurture relationships with candidates, track and organize candidate data and maintain regular communication with talent pools.
• AI-powered sourcing platforms. Studies show that 83% of HR leaders believe AI technology improves the recruitment process. Companies such as Unilever report that using AI tools has resulted in a 50% reduction in time-to-hire, leading to a more efficient hiring process. According to IBM’s survey, companies that use AI in hiring experience a 60% increase in candidate quality.
• Social media management tools are integral to recruitment strategies, as they have a wide reach and high engagement potential. Platforms such as LinkedIn allow HR managers to connect directly with potential candidates as well as offer access to industry-specific talent pools.

Measuring Sourcing Success: Key Metrics and Key Performance Indicators

It’s important for recruiters to measure sourcing effectiveness using key metrics and KPIs. Ideally, these should include:

• Source of hire measures the source providing the highest number and quality of applicants. 
• Time to fill measures the time it takes to fill a position. 
• Cost per hire measures the cost of recruitment per vacancy. 
• Quality of hire measures how well new hires perform and how long they stay. 
• Candidate response rate measures the effectiveness of the outreach effort.
• Sourcing channel effectiveness measures the effectiveness of each sourcing channel, such as job boards, social media and email campaigns. 

Elevating Your Sourcing Game: From Strategy to Success

It’s evident that effective sourcing plays a critical role in modern recruitment, assisting recruiters and hiring managers in the following ways:

• Improving the quality of hire
• Reducing the time to hire and cost of hire
• Improving workforce diversity
• Building the employer brand 

If implementing effective sourcing strategies and best practices and enhancing your sourcing efforts for better recruitment outcomes appeals to you, please contact our team today to understand the latest sourcing trends and technologies.