There are different sources of recruitment which are classified under two main categories;

  1. Internal Sources: All the sources of recruitment within the company or organization.
  2. External Sources: All the sources of recruitment outside the company or organization.

Internal Sources of Recruitment

Internal sources of recruitment include:

  • Transfers: means a change in place of employment without any change in the position, status, salary and responsibility of the employee. Thus, the situation can be filled by transferring an appropriate candidate from the same organization.
  • Internal Advertisements: Now, the vacancy is promoted within the organization. The current employees are requested to apply for the vacancy. Therefore, recruitment is done from within the organization.
  • Promotions: means to give a higher position, status, salary and responsibility to employee. Therefore, the post can be filled by promoting an appropriate candidate from the same organization.
  • Recall from Long Leave: The organization might recall a manager who has gone on a long leave. This is done when the company faces a problem which can only be solved by that specific manager. After he resolves the problem, his leave is extended.
  • Retired Managers: Sometimes, retired supervisors may be reminded for a short period. This is done when the company cannot find an appropriate candidate.

Merits of Internal Sources    

The merits / benefits / advantages of using internal sources of recruitment:

  • It rises the morale or confidence of the employees and it improves the relationships in the organization.
  • It decreases executive turnover.
  • It develops loyalty, faithfulness and a sense of responsibility.
  • It is time saving, cost-effective, simple and reliable.
  • There is no need of orientation because the candidate already knows everything about the company, the work, the employee, the rules and regulations, etc.
  • It motivates and encourages the employees to work hard in order to get advanced jobs in the same company.

Demerits of Internal Sources

The demerits / limitations of using internal sources of recruitment:

  • It avoids new blood from entering the company. New blood takes innovative ideas, fresh thinking and dynamism into the organization.
  • It has limited scope because it’s not possible to fill up all types of vacancies from within the organization.
  • Those who aren’t promoted will be unhappy.
  • The right person may be transferred or promoted only if proper confidential reports of all employees are maintained. This includes a lot of time, energy and money.
  • The position of the person who is transferred or promoted will be vacant.
  • There may be partiality or bias in transferring or promoting persons from within the organization.

External Sources of Recruitment

External sources of recruitment are:

  • Management Consultants: are used for choosing higher-level staff. They act as representative of the employer. They make all the essential arrangements for recruitment and selection. In return for services, they take a commission or service charge.
  • Public Advertisements: The Personnel branch of an organization advertises the vacancy in the internet, newspapers, etc. This advertisement gives info about the company, the job and the required qualities of the candidate. It offers applications from suitable candidates. This source is the most common and popular source of recruitment. This is because it provides a very wide choice. However, it is very expensive and time consuming.
  • Recommendations: The company or organization may also recruit candidates based on the recommendations received from present managers or from sister companies.
  • Deputation Personnel: The company may also recruit candidates who sent on deputation by the Financial institutions or Government or by holding or subsidiary companies.
  • Campus Recruitment: The organization conducts interviews in the campuses of Engineering Colleges and Management institutes. Final year students, who're soon to get graduate, are interviewed. Suitable candidates are selected by the association based on their communication skills, academic record, intelligence, etc. This source is used for recruiting qualified, trained but inexperienced candidates.


Advantages of External Sources

The advantages / benefits / merits of using external sources of recruitment:

  • It boosts young blood with creative ideas to enter the organization.
  • It offers wide scope for selection. This is because a huge number of suitable candidates will come for the selection procedure.
  • Here there is no need to maintain confidential records.
  • There are fewer chances of partiality or bias.

Limitations of External Sources

The limitations / demerits of using external sources of recruitment:

  • It is very expensive. This is because test, advertisements, medical examination etc., has to be conducted.
  • It is very time consuming because the selection process is very long.
  • It may not develop loyalty amongst existing managers.
  • The existing managers may leave the company if outsiders are given higher position.

human resource management

February 22, 2017