The Impact of Impact Sourcing

The Impact of Impact Sourcing

Identifying, recruiting, and retaining talent are critical components of business success. Leaders are continually seeking ways to gain an edge in these areas.

One strategy that is gaining ground is impact sourcing. It is a business process outsourcing (BPO) model that focuses on hiring from economically disadvantaged populations, and there are five reasons why it is becoming increasingly relevant.

1. Reduced Employee Turnover

High turnover is among the most expensive burdens that a company can bear. A 2018 study found that voluntary turnover in the United States cost employers an estimated $617 billion. That’s a huge price to pay for employee churn, especially when much of it is preventable.

How does impact sourcing address this? Consider that impact workers have often struggled to find employment, sometimes laboring months or weeks to find a suitable position. That makes them more likely to want to keep those jobs, if only to avoid repeating the struggle and even more so if employment includes a path for advancement. Many BPOs work to promote from within when possible.

Attrition Rate

Statistics back up this conclusion. One study found that impact workers have a 15-40% lower attrition rate than traditional BPO employees. That is huge, freeing up capital to do far more productive things in building a business than constantly plugging personnel holes.

What would reduced employee turnover mean for your business? It not only lowers the costs of recruitment, HR administration, new hire training, and onboarding, it also creates a more stable work environment. Companies retain the institutional knowledge acquired over time. There is continuity for handling the turnover in every business, and employees have the incentive to perform at peak levels.

2. Exceptional Employee Performance

Origin is not destiny, and where a person begins does not need to be a limiting factor in where that person goes. Despite coming from economically depressed areas or disadvantaged demographics, many have a desire to succeed and lack only the opportunity. Again, both research and empirical data support the theory that impact workers are comparable to traditional workers in terms of performance.

When gaps in knowledge are identified, highly targeted training programs can level the terrain. This is something that forward-thinking businesses do anyway. Firms who offer upskill training realize higher revenues and profits, and they also have higher retention. Employees appreciate companies who invest in their career development; such programs are good examples of how loyalty works as a two-way street.

3. Significant Cost Savings

Outsourcing Cuts Costs

While this model reduces costs by closing the ‘revolving door,’ it is also associated with lower upfront expenses than alternative BPO solutions. The application of impact sourcing in India provides a case in point.

One study found a 35-40% savings over the traditional BPO model. Figures like this confirm the validity of impact sourcing as a recruitment strategy. Nearly 60% of businesses use outsourcing because it cuts costs. In the IT and business sectors, 87% of organizations cite cost as their #1 reason for outsourcing. It’s a dollars and cents (sense?) reality.

4. An Edge Over the Competition

There is also a second competitive advantage found in impact sourcing – workforce productivity. Companies gain access to pools of talent that were previously untapped. Again India provides the example: more than 35% of young graduates (ages 15-29) are unemployed. This is a massive group from which companies can attract educated, motivated and “high-upside” employees.

5. Positive Social Impact

Finally, there is an associated social value. Impact sourcing benefits the disadvantaged through steady employment, breaking the cycle of poverty through career paths that lead to self-sufficiency and independence.

Unemployment Rate


Consider the effect on women. The global unemployment rate is higher for women than for men — 6.2% compared to 5.5%, according to a study by the United Nations, and the disparity is far more significant in some parts of the world. Impact sourcing enables many unemployed or underemployed women to develop careers, achieve financial stability, gain self-respect, and serve as role models for others with similar backgrounds.

Impact Sourcing and Your Business

In summary, impact sourcing is gaining currency because:

● It is an effective way to reduce employee turnover
● It often results in a higher-performing workforce
● It brings significant cost savings, both in upfront and long-term expenses
● It can provide a key competitive edge over other companies
● It has a positive impact on disadvantaged areas/populations

Impact sourcing is a proven means of optimizing the effectiveness of your recruitment strategy and simultaneously minimizing costs.

If you are especially interested in impact sourcing for contact center and technology outsourcing projects, contact GlowTouch today. We are an industry leader in providing world-class outsourcing services to a broad clientele and can help you find the impact sourcing strategy that best suits your organization.

About GlowTouch

GlowTouch is a privately held and WBENC-certified, woman-owned enterprise, founded in 2002. We provide personalized contact center, business processing, and technology outsourcing solutions to clients around the world. Our 2,300+ employees deliver operational excellence with high-touch engagement garnering recognition by independent bodies such as Everest Group, International Association of Outsourcing Professionals (IAOP), and a six-time honoree on the Inc. 5000. GlowTouch is headquartered in Louisville, KY, with onshore contact centers in Louisville, KY, and Miami, FL; a nearshore presence in Santo Domingo, Dominican Republic; and offshore locations in Mangalore, Bangalore, and Mysore India. To learn more about GlowTouch, visit www.GlowTouch.com

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