Recruitment is an activity of establishing contact between the employer and applicant.
According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization.” It is a linking activity that brings together those offering jobs and those seeking jobs.
Internal sources of recruitment refer to potential candidates identified from within an organisation. Initial consideration during recruitment should be given to the organisation’s current employees.
Internal sources are considered as the best sources of recruitment as it provides opportunities for better development and utilisation of existing human resources in the organisation.
External sources of recruitment refer to acquiring human resources outside the organisation in the labour market.
The labour market is huge, diverse and important for recruitment and requires careful planning and proper execution by the management.
The recruitment of manpower can be met in two ways i.e. internal sources and external sources. These are further divided into-
A: Internal sources of recruitment:-
1. Company’s Present Employees 2. Company Executives 3. Internal Transfers 4. Promotion 5. Re-Employment of Ex-Employees.
B: External sources of recruitment:-
1. Unsolicited Applications 2. Employment Agencies 3. Competitor’s Employees 4. Educational Institutions 5. Advertisements 6. Internet 7. Web-Job-Portals 8. Campus Recruitment
9. Outsourcing and Management Consultants 10. Labour Contractors 11. Casual Callers 12. Gate Hiring 13. Web Publishing 14. Recommendation of Employees 15. Employment Exchange 16. Special Events
17. Similar Organization 18. Training Institutions 19. Appointment of Part Time Employees as Full Time 20. Data Bank 21. Telecasting 22. Displaced Persons and 23. Employee Referrals.
Internal and External Sources of Recruitment
Sources of Recruitment – 2 Major Categories: Sources within and Outside the Company
The various sources used for recruitment of personnel are classified into two major categories as has been listed as follows:
I. Recommendations of Company’s Employees
II. Recommendations of Company’s Executives
III. Internal Transfers
2. Sources outside the Company:
II. Employment Agencies
III. Competitor’s Employees
IV. Educational Institutions
1. Sources within the Company:
I. Company’s Present Employees:
The current employees of the company are a particularly valuable source of recommendation because they already know about the company’s policies, work culture and have a favourable disposition towards the company. They are in a better position to recommend someone whom they think will be able to do justice to the various jobs. So many a times, these employees recommend their acquaintances to the company.
II. Company Executives:
Recommendations of the senior manager, the president, and other company executives are an equally important source. These executives’ personal contacts may yield top-calibre people, because of their understanding of the needed qualifications.
III. Internal Transfers:
The employees of other departments can also serve as one important source for filling the vacancies. Employees desiring transfers are already familiar with company’s policies, and the personnel department already has detailed information about them. Transfers offer good prospects for people who are looking for change in position and place.
Another advantage of turning to current employees is that their performance and achievement histories are better known to the management. A sense of security and loyalty also develops among the employees. But at the same time, it also involves the danger of inbreeding by stopping “infusion of new blood” into the organisation.
It might reduce the area of choice and limit the pool of talent available to the organisation and at times employees resist such internal transfers.
A promotion is the transfer of an employee to a job that carries higher pay and status. It involves re-assignment of an employee to a position having increased responsibilities, higher privileges, increased benefits and greater potential. It is another way to fill up the vacancies at the higher position in an organisation from within.
It calls for a vertical shifting of an employee. It proves to be highly motivational for an employee to be promoted to a job which is worth more to the organisation.
Thus, we could see that the various vacancies in an organisation can be filled in from the sources within the organisation, but these internal sources have their own merits as well as demerits as explained below-
a. Merits of Internal Sources:
i. Candidates have enough knowledge about the company.
ii. Increases the morale of employees.
iii. Provides employees with promotion opportunities.
iv. Cost of training will be less.
v. Best use of internal capabilities.
vi. Cost of internal recruitment is low.
b. Demerits of Internal Sources:
i. No new ideas and thoughts will enter the organization.
ii. Better qualified outsiders might not get a chance.
iii. Mobility of manpower is restricted.
iv. Employee promoted to a higher job may not possess required qualities.
v. Spirit of competition amongst employees may hamper.
vi. Growth of business may be hindered because of limited talent of insiders.
I. Direct Unsolicited Applications:
At times companies receive un-solicited “walk-in” and “write-in” applications for certain positions. Management should screen such applications carefully. Applicants not meeting minimum requirements as set forth in job specifications should be eliminated; those meeting these requirements should be processed together with other applications. The aim should be to recruit the best qualified applicants, regardless of the source from which they come.
II. Employment Agencies:
Whenever the services of an employment agency are used, they should be informed about the job’s objectives and the job specifications. The recruiter should meet with agency’s counsellor to ensure that the required information is furnished and understood.
Agencies often administer various types of tests, check references, and perform tasks otherwise done by the employer. So it should be clear to the companies as to what all services they require from the agencies and how to invite the right kind of people for their jobs.
III. Employees of Competing Companies:
Due to their experience in similar jobs, personnel recruited from competitors’ organisations may require only minimal training. However, attracting such employees is a costly affair, since generally premium pay must be offered to them to leave their present positions.
IV. Educational Institutions:
This source includes colleges and universities, vocational-technical institutes, and business schools. Companies prefer appointing fresh graduates from colleges and universities and giving them the required training and shaping them for various organisational roles.
Advertisements are both a source of identifying recruits and a method of reaching them. Newspapers, magazines and trade journals are the most widely used media for advertisements. Advertisements ordinarily attract a large number of applicants in a short time and at a low cost.
However, this advantage may be offset by the increased expense of screening a large number of applications and the quality of applicants, may be of questionable character.
Many companies are using their own websites to solicit applicants for various positions. The most positive aspect of web-based recruiting is that the cost of obtaining these resumes is very small. Also, voluntary applicants usually know something about the firm and have shown some initiative by submitting their resumes.
These days we have various web-job-portals, such as, Naukri(dot)com, First Job(dot)com etc. which provide organisations with resumes of the interested candidates for various profiles. Many companies are using these Internet recruiting sites to fill their positions. Most of the recruiting sites offer keyword searches by state, locality, industry, company, or title.
So, from all the sources listed above, the organisations try to attract as many people as possible from the outside sources for the various job profiles.
But even the outside sources suffer from certain merits and demerits given as under:
a. Merits of External Sources:
i. Management can attract qualified employees from outside.
ii. Wider choice to select the employee.
iii. Infusion of fresh blood with new ideas and thoughts in business.
iv. Competitive spirit amongst the internal and external employees.
b. Demerits of External Sources:
i. Dissatisfaction and frustration amongst the employees.
ii. Involves a long and cumbersome process.
iii. It is a costly affair to recruit from outside.
iv. No guarantee of the availability of the right talent from outside.
Sources of Recruitment – Internal and External Sources of Recruitment
A. Internal Sources:
Internal sources of recruitment refer to potential candidates identified from within an organisation. Initial consideration during recruitment should be given to the organisation’s current employees. Internal sources are considered as the best sources of recruitment as it provides opportunities for better development and utilisation of existing human resources in the organisation.
1. Transfers – A transfer refers to the process of interchanging roles and responsibilities from one place or one job position to another. It simply involves shifting already employed people from one job to another without any promotion or change in their position or grade. This process is sometimes followed when there is a surplus in one department and a shortage in a similar position or grade in another department. For example- a branch manager at a bank in Mumbai is transferred to work in the same bank located in another city, Nasik.
2. Promotions – A promotion refers to promoting or upgrading an existing employee working from a lower rank or position to a higher rank where his/her responsibility and pay package increases. Promotions also involve improvement in status, availability of amenities and facilities.
For example- a research manager in a business unit of a market research agency is promoted to the director’s position within the same business unit following various performance evaluation procedures.
Advantages of Internal Sources:
1. Sense of security – Internal sources of recruitment create a sense of security among employees where they are motivated to work and perform effectively.
2. Maintain loyalty – Employees remain loyal to an organisation and ensure cordial relations in the organisation.
3. No induction/training – People recruited within organisation are familiar with the job, people and the workplace, they do not need induction/training.
4. Encourages career growth – Employees in lower ranks are encouraged to look forward to rising to higher positions and it acts as a morale booster if employees recognise promotions a reward for and recognition for their hard-work and efficiency.
5. Labour turnover and costs are reduced – Labour turnover is a ratio of number of employees that leave (through dismal, resignation or attrition) to the number of employees on payroll during that time period. It implies how long employees stay in an organisation and how often the organisation needs to find their replacement.
As internal sources absorb surplus or pertinent employees from other departments it reduces the possible costs of recruiting from external sources. It also improves morale of employees and dissuades them from leaving the organisation thus reducing labour turnover.
6. Motivates efficiency – Recruitment from internal sources facilitates better utilisation of skills, experience and qualifications of existing employees. This motivates employees to work efficiently.
7. Maintains valuable contacts – With sense of security and motivation employees are discouraged to leave their existing jobs and ensure cordial industrial relationships. This in turn allows organisations to have continuous communication with major suppliers/customers who have worked with them for a long period of time.
8. A better employer-employee relationship – Motivation and sense of security also enables better employee-employer relationships and confidence between each other.
1. Limited choices – This method limits the choice of selection to few candidates within the enterprise instead of a more diverse workforce thereby keeping a large pool of potential employees in the market untapped.
2. Encourages favouritism and nepotism – There may be bias or partiality in promoting or transferring employees from within an organisation which in turn could reduce the morale of employees to work hard. This could also encourage corruption within the organisational framework.
3. Leads to lethargy – It creates lethargy among employees who get a definite feeling of promotion and recognition. It affects their performance and restricts new and innovative ideas.
4. Extra costs for retention – If a concern is extending its activities into new lines, internal candidates may prove unsuitable for new positions. This may involve extra costs in imparting necessary training for them.
5. Negative productivity – Frequent transfers across departments or regions may not allow employees the opportunity to become efficient in any single job. Consequently, it lowers the employees’ morale and productivity.
B. External Sources:
The limitations of internal sources of recruitment can be mostly encountered by recruiting from external sources. External sources of recruitment refer to acquiring human resources outside the organisation in the labour market. The labour market is huge, diverse and important for recruitment and requires careful planning and proper execution by the management.
Organisations mostly rely on external sources of recruitment when existing employees may not be suitable for taking up higher responsibilities or positions. Also, when organisations are involved in expansions, the volume of employees needed can be fulfilled through external sources. While there are significant advantages to external sources, there are also disadvantages which organisations need to acknowledge.
1. Media Advertisement:
Advertisements are the most preferred mode of external recruitment as they are capable of reaching a mass of people in a short time period. Job advertisement is a paid announcement in national newspapers, industry magazines, journals and sometimes television.
This source has a wider coverage as well as better reach than most sources and is useful for acquiring skilled workers, clerical and higher staff. Organisations advertise job openings by posting the title/designation, job profile, required qualifications and work experience, expected salary, location, etc.
2. Campus Recruitment:
Organisations can recruit fresh graduates from schools, colleges and universities for specific jobs which require technical or professional qualifications. This is also referred to as “Campus Recruiting” or “On-campus Job Placements”. A close liaison between organisations and educational institutions can help determining suitable candidates. Recruitment through this source is meant for positions in organisations at a junior level or as managerial trainees.
3. Placement Agencies/Outsourcing and Management Consultants:
Transferring the whole or few parts of recruitment process to an external HR consultant providing recruitment services is called outsourcing recruitment. These outsourcing agencies charge a certain fee for recruitment services for their readily available sources of qualified applicants and make selection process simple for organisations.
4. Labour Contractors:
Labour contractors collect a pool of unskilled labour to work in road, building construction and plantation industries. Contractors establish a good relationship with employers in these industries and supply necessary labourers as per their demand.
5. Casual Callers:
Potential employees or applicants can directly walk-in across organisations and distribute their job applications even if the organisations do not post any job requirements. These casual callers or job applications are maintained in the records of the organisation and could be called upon in case of new vacancies or openings. This source is one of the cheapest sources of recruitment that does not require incurring any cost on advertisements.
6. Direct Recruitment/Gate Hiring:
Organisations post a notice on requirement of workers especially to manage excessive work or to temporarily fill in vacant jobs of permanent workers who are absent. Certain (unemployed and casual) workers usually present themselves at the factory gate for employment. These workers are unskilled and semi-skilled workers who are randomly selected by the first-line supervisors. This source however carries the risk of unqualified candidates who may not be suitable for the job openings but the associated costs of labour are usually minimal.
7. Web Publishing:
Web publishing refers to the process of publishing job openings on the Internet. Businesses can either publish such job openings on their own websites or on independent job portals. Examples of independent job portals are Naukri (dot) com, Monsterindia (dot) com; Timesjobs (dot) com; Careerage (dot) com, etc.
8. Recommendation of Employees:
Vacancies in an organisation can also be filled by recruiting friends and family members of existing employees through recommendation from existing employees, friends, family or relatives. As the background is mostly known, they could probably prove to be good employees.
9. Employment Exchange:
Employment exchanges are any offices or places established and maintained by the government for the collection and supply of information regarding job vacancies to the unemployed and information about prospective workers to employers. The main activities of employment exchanges include job registrations, placement of job seekers, career counselling and vocational guidance and collection of employment market information.
In India, as per the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, provide the above mentioned services but vacancies in any employment is not applicable in agriculture, domestic service, unskilled office work, connected with the staff of Parliament and employment for less than three months.
Advantages of External Sources:
1. Dynamic source/wider choice – External sources of recruitment provide an access to a large pool of talented candidates from diverse backgrounds. This source is more dynamic than internal sources which consist of potential candidates with a fresh outlook and new ideas.
2. Fresh talent – The selection of potential candidates from external sources could be beneficial. These candidates may have experience in other fields that enables them to suggest new ideas and demonstrate different approaches to work. An organisation can have a competitive advantage with such fresh talent.
3. Competitive spirit – Recruitment of experienced candidates from external sources can create an environment for healthy competition between internally existing and external members in an organisation. Existing employees can get motivated and perform efficiently that could possibly match to the new ideas and methods suggested/ demonstrated by employees recruited through external sources.
4. Reinforces objectivity – A candidate chosen through external sources with no prior commitment to existing employees or ongoing projects may be able to objectively bring about necessary changes and new ideas in an organisation.
5. Less chance of favouritism – External sources allow equal opportunity for participation to all types of individuals and all sections of society thus creating less chance of favouritism or bias.
6. Exploit market conditions-With an organisation experiencing changes in demand or supply in the market, external sources can enable an organisation to exploit labour market conditions to save on labour costs.
Disadvantages of External Sources:
1. Frustration among existing employees – Employees generally feel frustrated and their morale is adversely affected if they do not get adequate opportunities for promotion. This could affect their motivation and they may lose their sense of security and commitment to work.
2. Lengthy process – External sources of recruitment are mostly a lengthy and a time-consuming process as it requires maintenance of information on a pool of potential candidates. Selecting the right candidate with appropriate skill sets as suggested by the management makes it a time-consuming and a lengthy process.
3. Expensive process – External sources being time-consuming can also be an expensive source of recruitment for the organisation as compared to internal sources. External sources may not be ideal for filling up vacancies in a short span of time.
4. Time to adjust – New candidates may take time to adjust to the policies and procedures of the organisation in comparison to the candidates recruited from internal sources who are more aware of organisations’ workings.
5. Chances of wrong selection – External sources carry the risk of selecting a candidate whose qualification may not suit the job requirements. This could also affect the morale of existing employees who may be better experienced and qualified than their superior/subordinate. The organisation in turn could also face losses in terms of low productivity and inefficiency set in by the new candidate.
6. Increase in turnover of labour – The possibility of selecting a wrong candidate could cause an increase in labour turnover. Existing employees who are frustrated and are convinced of not being promoted in the future can leave the organisation at the first available opportunity.
7. Difficulties during induction/training – Wrong selection of candidates could also create resistance from existing employees during induction /training of new candidates. Existing employees may resist repetitive learning who may believe that they are more qualified than the new candidate recruited at higher levels.
Sources of Recruitment – Top 2 Sources: Internal and External Sources of Recruitment
Any organization for the process of recruitment either develops new sources or this to recruit from the existing sources of the organization. The recruitment of manpower can be met in two ways i.e. internal sources and external sources.
1. Internal Sources:
They serve the following purposes:
(i) Improves employer – employee relationship.
(ii) Develops sense of security.
(iii) Labour turnover is reduced.
(iv) Less cost.
(v) Employees are motivated to perform better.
The internal sources of recruitment are as follows:
(i) Present employees, permanent, temporary already working in the organization are a good source of vacancies may be filled up from such employees through promotions, transfers and demotion.
(ii) Retired and retrenched employees who want to return to the company may be hired.
(iii) Relatives and friends of deceased and disabled employees
Advantages of Internal Sources:
The advantages of internal sources of recruitment are as follows:
(i) Suitability of existing employee can be judged better as record of their qualifications and performance is already available in the organization.
(ii) It encourages self-development among the employees.
(iii) The time and expenditure of recruitment are reduced as there is no need for advertising the vacancies.
(iv) Relations with trade unions remain good.
(v) It can also act as a training for developing middle level and top level managers.
Disadvantages of Internal Sources:
The disadvantages of internal sources are as follows:
(i) It results into narrow choice.
(ii) Chances of favouritism are higher.
(iii) All vacancies cannot be filled up from within the organization.
(iv) It doesn’t allow new blood to enter in the organization.
(v) Growth of business is restricted.
(vi) This source of recruitment is not available to a newly established enterprise.
2. External Sources:
Often the organization may look for employees from outside the organization. The need of external source may arise when the organization need for recruitment has arisen due to technological change there by requiring a change as addition in the team manning the machine.
It serves the following purposes:
(i) Better selection or wider choice
(ii) More dynamic
(iii) Better utilization of experience and trained personnel
(iv) Invitation without any discrimination.
The external sources of recruitment consist of the following:
It is the most common method for contacting the candidates for various positions in business or non-business organisations. In this case of recruitment of personnel, advertisement is the medium for informing and persuading the prospective candidates to offer themselves for employment.
Various kinds of advertisements according to the requirement of the organization can be put in newspapers, professional journals, magazines, T.V., radio and internet.
(ii) Employment Exchanges:
Government of India has established public employment exchanges throughout the country. These types of exchanges provide information about job vacancies to the job seekers and help the employees in searching for a good candidate for the organization.
In some organizations there are formal agreements to give priority in recruitment to the candidates recommended by trade unions. Relatives and friends of employees are given priority in recruitment in some companies.
(iv) Recruitment Agencies:
Several private companies give certain amount of fees or commission to private consultancy firms to perform recruiting function on their behalf. These agencies are particularly suitable for recruiting of executives and specialties. They perform all the functions of recruitment and selection so that the clients is relieved from this burden.
(v) Special Events:
An employer may wish to recruit applicants at special events such as jobs fairs. These events not only offer a potential source of recruitment, but also serve a good public relations device to the employer.
(vi) Similar Organization:
Experienced employees can be recruited by offering better benefits to the people working in similar organizations. New organizations of well-known business houses often lure experienced executives and technical experts from the public sector.
(vii) Training Institutions:
Schools, Colleges and Universities all different levels offer opportunities for recruiting recent graduates. This method offers technical as well as professional’s candidates. Good institutions have placement cells which play an important role between the employers and students/Job Seekers.
(viii) Appointment of Part Time Employees as Full Time:
Sometimes according to situation of the company due to heavy work load in the peak season the part time employees are appointed as full time to perform their duties and tasks.
Advantages of External Sources:
The advantages of external sources of recruitment are as follows:
(i) Experience and expertise from other organizations can be brought.
(ii) Wider choice is there to select the personnel.
(iii) People having the skill, education and training can be obtained
(iv) It can be the best source when suitable people from within are not available.
Disadvantages of External Sources:
The disadvantages of external sources of recruitment are as follows:
(i) If at higher level people are recruited motivation and loyalty of existing staff is affected.
(ii) Training is required for the people who are newly recruited in the organization.
(iii) Expensive process to recruit people.
(iv) Time consuming process to recruit people from outside.
Sources of Recruitment – 2 Important Sources: Internal and External Sources
Recruitment is an activity of establishing contact between the employer and applicant. According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization.” It is a linking activity that brings together those offering jobs and those seeking jobs.
According to Dale S. Beach “Recruitment is the maintenance of adequate manpower resources. It involves the creation of a pool of available labour upon whom the organisation can draw when it needs additional employees.” Recruitment refers to the attempt of getting interested applicants and creating a pool of prospective employees so that the management can select the right person for the right job from this pool Recruitment precedes the selection process i.e., selection of right candidates for various position in the organisation.
Recruitment is a positive process as it attracts suitable applicants to apply for available jobs. The efficient operation of the enterprise and its future depends upon recruitment policy.
A. Internal Sources:
Internal sources of recruitment relate to the existing employees of the firm. The company may get recruits for certain positions through transfers, promotions, and re-deployment or through succession-panning. All of them shall qualify as ‘internal recruits’.
B. External Sources:
The external sources of recruitment may be classified broadly under two types:
a. The traditional and
b. Non-traditional sources of recruitment.
a. Traditional Sources:
The traditional sources of recruitment include the following:
i. Recruitment Advertisements:
Most common source of recruitment However, a company decides the reach, frequency and consequently the cost of such ads vis-a-vis the benefits accrued in terms of recruitment.
ii. Employee Referrals:
These are candidates who are referred to the companies by their own employees. Generally, the employee-referrals are thought to, safe-bets as they are likely to be good fits both job-wise and culturally as they have been picked-up by their own people. However this source should be guarded from nepotism.
Fresher are often recruited from the educational campuses. The companies have an opportunity thus to catch the university graduates young.
iv. Recruitment Consultants:
Variety of recruitment consultants flood the market and they provide the firm with variable recruitment options.
v. Employment Exchanges:
The Regional employment exchanges may sometimes provide useful database for recruitment.
vi. Leasing Firms:
Certain companies may opt for leasing-out employees rather than hiring them. There are firms leasing-out employees to such companies for the time a project or a schedule lasts.
These are those workers who used to work for a particular firm sometime back, then left and are now eager to come back to the fold. This may be a win-win situation for both parties as both would have learnt from each other mistakes and also may have realized each other’s value.
A boomeranger is likely to be more retainable. However, the firm must definitely check why he/she left the first place before welcoming or calling the employee back. He/ she should not have left for any wrongful act or with any blotches on credibility.
ii. Retired not Hurt:
These are retired people who have much steam left in themselves. They can help the firm with their rich experience and knowledge. However, a firm should be cautious in testing that they do not come with a heavy baggage of rigidity and self-praise.
iii. Re-Entry Workers:
These are those categories of workers who used to work before and left due to certain reasons but now with toughening economic situation are eager to come back to work. Again, a good option for the firm but they should check that the commitment is long enough and not a stop-gap arrangement for the employee seeking re-employment.
iv. Students & Housewives:
Part-time workers who are eager to make some money fin their spare time come in such forms. Not all industries have matches for such employees. BPOs have perhaps the best match.
Sources of Recruitment – Internal and External Recruitment
Sources of recruitment are of two types:
1. Internal Recruitment:
Internal Recruitment is a recruitment which takes place within the concern or organisation. Internal sources of recruitment are readily available to an organisation. Internal sources are primarily three. Transfer, promotions and re-employment of ex-employee. Re-employment of ex-employee is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.
Internal recruitment may be lead to increase in employee’s productivity as their motivation level increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it refrains the organisation from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done.
Internal sources are primarily three:
ii. Promotions (through internal job postings), and
iii. Re-employment of ex-employees – Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.
2. External Recruitment:
External sources of recruitment have to be solicited from outside the organisation. External sources are external to a concern. But it involves lot of time and money.
The external sources of recruitment include:
i. Employment at factory gate,
iii. Employment exchanges,
iv. Employment agencies,
v. Educational institutes,
vii. Labour contractors etc.
i. Employment at Factory Level:
This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another.
These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers have a tendency to shift from one factory to another and therefore they are called as “badli” workers.
It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television.
iii. Employment Exchanges:
There are certain Employment exchanges which are run by government. Most of the government undertakings and concerns employ people through such exchanges. Nowadays recruitment in government agencies has become compulsory through employment exchange.
iv. Employment Agencies:
There are certain professional organisations which look towards recruitment and employment of people, i.e., these private agencies run by private individuals supply required manpower to needy concerns.
v. Educational Institutions:
There are certain professional institutions which serves as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions is called Campus Recruitment. They have special recruitment cells which helps in providing jobs to fresh candidates.
There are certain people who have experience in a particular area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled by recommendations of such people. The biggest drawback of this source is that the company has to rely totally on such people which can later on prove to be inefficient.
vii. Labour Contractors:
These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e., for a particular time period. Under conditions when these contractors leave the organisation, such people who are appointed have to also leave the concern.
Sources of Recruitment – Internal and External Sources
Persons who are already working in an organization constitute the internal sources. Retrenched employees, retired employees, dependents of deceased employees may also constitute the internal sources.
Advantages of Internal Sources:
The Following are the Advantages of Internal Sources:
1. Improves morale – When an employee from inside the organisation is given the higher post, it helps in increasing the morale of all employees. Generally every employee expects promotion to a higher post carrying more status and pay (if he fulfils the other requirements).
2. No Error in Selection – When an employee is selected from inside, there is a least possibility of errors in selection since every company maintains complete record of its employees and can judge them in a better manner.
5. Economy in Training Costs – The existing employees are fully aware of the operating procedures and policies of the organisation. The existing employees require little training and it brings economy in training costs.
Disadvantages of Internal Sources:
1. It discourages capable persons from outside to join the concern.
2. It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organisation.
3. For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.
4. If only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.
In spite of the disadvantages, it is frequently used as a source of recruitment for lower positions. It may lead to nepotism and favouritism. The employees may be employed on the basis of their recommendation and not suitability.
II. External Sources:
The external sources of recruitment supply the manpower from the outside sources. Here, the employees are selected from outside the enterprise through a prescribed selection procedure. External sources provide a large pool of talented persons and at the minimum cost.
Following are the various sources of external recruitment:
1. Educational and Training Institutions:
One of the oldest recruitment practices in the United States is known as Scouting— sending recruiters to the schools and colleges for interviews and screen possible recruits and persuade them to come to work, which is regarded as part of the American Way. Now, different organisations in India also use this method.
Most of the organisations are using this source to perform the function of selection after completing the recruitment in the campus of the institute itself with a view to minimise time lapse and securing the cream before they are attracted by some other organisations.
These are the individuals and organisations, which work as middlemen to supply workers. If the organisation fails to work directly, it meets its requirements through this source.
3. Recommendations of Existing Employees and Trade Unions:
The existing employees of the organisation recommend the names of their family, relatives, or friends and the organisation recruits them. If the employees recommend suitable candidates, then this method is suitable.
Advertisement is the most effective means to search potential employees from outside the organisation. These advertisements can be given in journals, newspapers, bulletins, etc. The coverage of the advertisement is very large. Advertisement includes the important information regarding the job profile, salary, minimum qualification, etc.
This is the most commonly used method by which employers carry out their search for suitable staff. Apart from the national and the local press and to a limited extent, television and radio, professional and trade journals are an important source of recruitment by this means.
5. Employment Agencies:
Many organisations obtain the information regarding the prospective candidates through the employment exchanges.
In our country, two types of employment exchanges are operating:
(i) Public Employment Exchanges – These are run by government.
(ii) Private Employment Exchanges – These are run by individuals privately.
6. Gate Hiring:
The concept of gate hiring is to select people who approach on their own for employment in the organisation. This happens mostly in the case of unskilled and semiskilled workers. When large numbers of workers are required at the initial stage of the organisation, then this method is suitable.
7. Professional Organisations:
Professional organisations also help the organisation to fill up the vacancies. These organisations have complete bio-data of their members and provide them to the organisations at the time of recruitment. These act as a link between the members and the recruiting firms.
8. Data Bank:
Under this, the management can collect the bio-data of the candidate from the different sources like educational training institutions and employment exchanges, etc. and feed them in computer, whenever there is a need, the recruiting firm can use and get the suitable candidates.
9. Casual Callers:
Many well reputed business organisations draw a steady stream of unsolicited applications in their offices. Such job seekers can be a valuable source of manpower. A waiting list of such visitors may be prepared and they may be screened to fill the vacancies as they arise.
In this method, the jobs are telecasted which includes all the important information like job profile, experience, salary, minimum qualifications, etc.
There has been a growth in the use of the internet to attract applicants. Surveys show that many organisations use the internet. Benefit from this method is the speed— by which applicants can obtain information about the organisation and application documents can be downloaded from the internet. Whilst the internet was initially suitable for professional and technical vacancies, one suspects that the spread of personal computing to all potential applicants groups will see this tool develop further.
Internet and websites are used for the recruitment. Various websites like www(dot)naukri(dot)com register the candidates for the jobs and provide them information regarding the vacant posts suitable for them.
12. Walk-ins, Write-ins and Talk-ins:
Nowadays, walk-ins are becoming a very popular method of recruitment. Advertisement is given in the newspapers for walk-in interview. The applicants just walk in with their resumes for the interviews. However, this is tough for the organisation as it is not known that how many candidates will walk in for the interview.
13. Displaced Persons:
Implementation of a project in a particular area would result in displacement of several inhabitants. Rehabilitating the displaced persons is a social responsibility of every business organisation. The companies should recruit such displaced persons; however, the track record of companies in this respect is disappointing.
14. Employee Referrals:
If the company feels that they can obtain candidates by word of mouth, they may place an advertisement on the company’s noticeboard stating their requirements. Employees of the company may contact persons known to them, who may be suitable for the job and obtain their bio-data. The personnel department would scrutinise applications and call shortlisted candidates for an interview.