Sourcing

What is Sourcing?

Sourcing is the process of identifying and attracting potential candidates for job vacancies.

In simple terms, it’s about finding the right people for the right jobs before or as soon as a position opens. This step is one of the most important in the recruitment cycle, as it sets the foundation for hiring success. Instead of waiting for applicants to come, sourcing takes a proactive approach by reaching out to candidates directly. This includes people who are actively searching for jobs, as well as those who are currently employed but open to new opportunities. By continuously sourcing talent, organizations can maintain a strong pipeline of qualified candidates ready to fill roles quickly.

Types of Sourcing

Different hiring needs require different sourcing strategies. Let’s explore the main types of sourcing used by HR professionals today.

1. Internal Sourcing

Internal sourcing involves filling job roles with existing employees.

This method includes promotions, lateral moves, or reassignments within the company.
It is often preferred because it reduces hiring time and shows employees there are growth opportunities. As a result, it boosts morale and retention.

2. External Sourcing

External sourcing finds candidates from outside the organization.

This method is used when internal talent is not available or when fresh perspectives are needed. Job portals, recruitment agencies, and social platforms are common tools for external sourcing. It broadens the talent pool and introduces new ideas into the company.

3. Passive Candidate Sourcing

Passive sourcing targets individuals who are not actively looking for a job.

These candidates may be highly skilled and successful in their current roles. They are usually reached through platforms like LinkedIn or by direct outreach. Although it takes more effort, this method often yields high-quality hires.

4. Online Sourcing

Online sourcing uses digital tools and platforms to find candidates.

Social media, resume databases, and company websites are key resources. This approach allows recruiters to scale their search and reach candidates globally. It is both cost-effective and time-efficient.

5. Employee Referrals

Employee referrals are candidates recommended by current employees.

Many companies offer rewards to encourage referrals. This method is popular because referred candidates often perform better and stay longer. It also helps identify people who fit well with company culture.

6. Campus Sourcing

Campus sourcing involves recruiting students and recent graduates.

Employers often visit universities, participate in job fairs, and offer internships. This strategy helps companies nurture young talent and prepare them for full-time roles. It’s ideal for building future leaders from the ground up.

Why is Sourcing Important?

Sourcing is not just the first step of recruitment it’s the foundation of successful hiring.
Here’s why it matters:

Sourcing helps organizations stay ahead in competitive job markets.

When you have a pool of pre-qualified candidates, you can hire faster and better. This shortens time-to-fill and reduces the overall cost of hiring. Moreover, sourcing improves the quality of hires by focusing on the best-fit candidates early in the process.

It supports business continuity by ensuring no critical role remains vacant for long. Sourcing also promotes diversity and inclusion by reaching a wide range of candidates. Finally, consistent sourcing efforts strengthen employer branding, making the company more attractive to top talent.

Sourcing Process

To be effective, sourcing should follow a structured process. Let’s break it down into clear, actionable steps.

1. Understanding the Job Requirement

Start by understanding the role you're sourcing for.
This means meeting with the hiring manager to define the responsibilities, qualifications, and expectations. The more detailed your understanding, the better your sourcing strategy will be. It helps you target the right candidates and avoid mismatches later.

2. Creating a Sourcing Strategy

Next, design a sourcing plan tailored to the job role. Choose platforms and tools based on the target candidate profile. Set clear objectives such as number of leads, quality benchmarks, and timelines. A focused plan keeps your efforts organized and effective.

3. Searching for Candidates

Now, it’s time to start searching. Use Boolean strings, job boards, resume databases, and social media platforms. Look beyond job titles, check skills, experiences, and cultural fit. The key is to be precise yet open to discovering hidden talent.

4. Engaging with Candidates

Once you've found potential candidates, reach out with personalized messages. Highlight the benefits of the role and what makes your company unique. Avoid generic communication, it lowers response rates. Instead, build genuine interest and rapport.

5. Screening and Shortlisting

After engagement, begin screening candidates for fit and interest. Check resumes, portfolios, and conduct brief phone screens if needed. This ensures you only pass qualified leads to hiring managers. It saves time and increases interview success rates.

6. Tracking and Reporting

Keep track of all candidate interactions and performance metrics. Use an ATS (Applicant Tracking System) or CRM to organize your data. Monitor what works and what doesn’t. This way, you can improve sourcing results over time.

Sourcing vs Procurement

Although the term "sourcing" is commonly used in both Human Resources and supply chain management, its meaning and purpose differ significantly depending on the context. In HR, sourcing refers to the process of identifying and engaging potential job candidates. The main objective is to fill job vacancies with top talent who meet specific role requirements. It focuses entirely on people and talent acquisition, using tools like LinkedIn, applicant tracking systems (ATS), and online job portals. Success in HR sourcing is typically measured by metrics such as time-to-hire and quality of hire.

On the other hand, procurement refers to acquiring goods and services necessary for running a business. Its primary objective is to obtain high-quality products or services at the best possible value. Procurement activities focus on products, vendor relationships, and contract management. The tools used in procurement include supplier databases, procurement software, and vendor management systems. Key performance indicators in procurement are usually based on cost savings, supply reliability, and vendor performance.