Unlocking Potential: Understanding Talent Sourcing Methods

Understanding the difference between employee sourcing methods is important for efficiency, revenue growth and improving your overall company morale. It also helps to diversify your team and better understand their needs. Whether it be local, national or global sourcing, each method offers different benefits. Through research, trial and tribulation, years of experience and an overall commitment to improving the staffing world, our KFI Staffing team has narrowed down, what we believe, to be the most beneficial method. 

To understand the pros and cons of each method, it’s important to have a solid foundation of what they represent: 

Local Sourcing: This refers to the practice of recruiting and hiring employees from the same geographic area or region as the organization’s physical location. It typically involves seeking candidates who live or work in the same city, town, or local area where the company is based. On average, this does not exceed 30 miles from any given recruiting location.  

National Sourcing: This method relies on the practice of recruiting and hiring employees from within the same country where the organization is based. Instead of limiting the search for candidates to a local or regional area, companies that source talent nationally consider job applicants from various cities, states, or regions within their country. Depending on the type of position looking to be filled will drive where you source national talent from.  

Global Sourcing: Global sourcing, on the other hand, involves looking beyond national borders to find resources or talent. This approach seeks to leverage a broader pool of options and may prioritize cost efficiency, access to specialized skills, or the ability to tap into global markets. Global sourcing can introduce diversity and innovation but also requires considerations related to cultural and logistical, as well as the potential impact on local industries. 

Regardless of the method, being short-staffed can result in revenue loss for your company. On average, production associates produce 6 times their hourly salary in revenue; therefore, being short staffed 20 employees at $30/hr would lose $144,000 in revenue per week. Understanding how your company sources talent is important to ensure operations are running at full capacity. 

 

 

 

Why does KFI Staffing Source Talent Nationally? 

When it comes to nationally sourcing talent, the primary purpose is to widen your talent pool while ensuring that your team members are aligned with the needs and values of your company. Sourcing talent nationally can support economic growth by promoting employment, contributing to skill development, and increasing diversity. It can also enhance communication and innovation within the workplace, as employees share different perspectives and experiences. 

Another benefit of sourcing talent nationally is that it creates job opportunities for communities. This allows individuals in areas where job options are limited to find employment beyond their borders. By offering job opportunities to individuals beyond their local perimeters, organizations contribute to the growth of diverse communities and empower individuals in regions where employment options might be limited. This approach helps bridge employment gaps and promotes a more inclusive workforce. National talent sourcing acts as a powerful tool not just for organizational success but also for fostering a more robust job market. 

Local, national, and global sourcing each present distinct advantages and challenges. By casting a wider net across the country, companies have greater opportunities to build a team that offers diverse perspectives, fosters innovation, and contributes to economic growth. The benefits extend beyond the organization, creating job opportunities, supporting skill development, and enhancing the overall quality of talent available. In the ever-changing landscape of the manufacturing industry, where the consequences of being short-staffed can be significant, the different types of talent sourcing act as a strategic approach, positioning companies for success. 

Labor Shortage Issues Within the Manufacturing Industry: KFI Staffing’s Innovative Approach

What sets apart a successful business from a less successful business? Several possibilities may come to mind, but the heart of any business is the employees. Whether it’s working on the production floor or overseeing heavy machinery, these employees help ensure day-to-day operations run smoothly. Not only is it important to have employees you can trust, but retaining those employees is a key factor. As mentioned in our last blog, Top Employee Retention Strategies: Keeping Your Employees Engaged and Productive, there are many ways to ensure employee success.  

Not only is retaining employees an obstacle faced by the manufacturing industry, but the hiring process in itself can present difficulties. With over 80 years of combined experience, our team is composed of seasoned staffing industry experts. We understand the complexities of a wide range of manufacturing industries, ensuring that our solutions are tailored to meet the needs of each partner we work with. 

What is the #1 Problem the Manufacturing Industry Faces? 

As mentioned earlier, employees are the heart of the manufacturing industry. As demand continues to increase, the manufacturing industry has also seen an increase in employee turnover rates as they have grown from 30.6% in 2017 to 39.9% in 2023. Therefore, labor shortages are a pressing concern because they can halt production, decrease revenue, and slow business growth. Over the long term, this increase can slow economic growth and industrial advancements. Shortages can also lead to overworked employees, causing burnout and affecting their overall well-being.  

Addressing this issue is not only important to ensure the stability of the manufacturing industry, but it’s also critical for employee retention. From a wider lens, labor shortages are not just about solving a business problem but also about maintaining the health of the economy and the livelihoods of the workforce. 

How Does KFI Staffing Fix This Problem? 

When starting a new job, there are many external factors that can make the process intimidating. Whether it be relocating, learning the ropes of the new role, or transportation to and from work, these aspects add a layer of stress. According to Habitat for Humanity, one reason why manufacturers are struggling to retain employees is due to the struggle of finding affordable housing. Supporting employees within work hours is a non-negotiable, but how does supporting them outside of work enhance the quality of work they produce? 

 

 

Recent studies show that 83% of workers who do not feel secure about their job are less likely to stay. At KFI Staffing, we go the extra mile by assisting employees with their housing and transportation needs, enabling them to feel secure and excel in their new roles. This added sense of security extends beyond the workplace to eliminate concerns about housing and transportation stability. KFI Staffing ensures your talent is set up for success by making sure your employees’ basic needs are met to enhance job security and foster a strong sense of job satisfaction. 

Conclusion

The success of any business, particularly in the manufacturing industry, relies heavily on its workforce. The ability to source, retain, and support dedicated employees is critical to maintaining operations, driving revenue, and fostering long-term growth. Labor shortages in manufacturing can be detrimental to both induvial production and the economy. Not only do they halt production, but they also place excessive demands on existing employees. KFI Staffing recognizes these challenges and, with over eight decades of combined experience, offers innovative solutions that set us apart in the staffing industry. Our approach extends beyond placing individuals in roles; we address the personal needs of employees. Our commitment to going the extra mile ensures that employees are well-equipped for success, which, in turn, sets our clients up for long-term sustainability.