In this article we will discuss about the internal and external sources of recruitment.

Internal Sources of Recruitment:

The sources within the organization itself to fill a position are known as the internal sources of recruitment. When a vacancy arises in the organization it is given to an employee who is already on pay roll. The vacancy is advertised within the company and on the basis of responses from within the organization, a selection is made. Internal sources includes transfer and promotion.

(a) Transfer:

Transfer is the shifting of employee from one job to other or from one department to other. At the time of transfer it is ensured that the employee to be transferred to the new job is capable of performing it.


(b) Promotion:

Promotion is the transfer of an employee to a job that pays more money or one that enjoys preferred status. Promotion leads to motivation among the existing employees. Promotion leads to shifting an employee to a higher position carrying higher responsibilities, facilities, status and pay.

Advantages of Internal Sources:

a. It helps in increasing the morale of the employee.


b. There is no error in selection since the organization maintains complete record of its employees.

c. The cost of recruitment is very less.

d. Very less training is required.

Disadvantages of Internal Sources:


a. The choice of candidate is generally limited.

b. It discourages capable persons from outside joining the organization.

External Sources of Recruitment:

Recruitment of candidates from all the other sources is known as the external sources. All the organizations have to depend on external sources for recruitment.

These include:


(a) Advertisement:

Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.

(b) Educational Institutes:

Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as campus recruitment.


(c) Placement Agencies:

Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists.

(d) Casual Callers:

On occasions people drop in without any announcement of vacancy to find out if jobs are available. A waiting list of such visitors may be prepared and they may be screened to fill the vacancies whenever they arise.


(e) Recommendations:

Friends and relative of present employees are also good source of recruitment. Many concerns prefer such candidates as their background is known and type of preliminary screening takes place.

(f) Gate Hiring or Recruitment at Factory Gate:

It is usually followed by factories to fill up vacancies at lower level. Large enterprises usually place a notice on notice board specifying details of job available. A large number of unemployed persons assemble at gate where personnel manager scrutinize them and pick the persons as per requirement. Small workshops recruit fitters, welders etc., through this source.


(g) Websites:

With the start of internet, searching, of candidates has become easy. Web portals dedicated to finding jobs have been set up. The candidates key in their details and post their resumes. Employers have to just browse through these resumes to list out people with specific skills.

(h) Unsolicited Applicants:

Many candidates send their resumes to company without any explicit re­quest. Companies usually file these resumes and refer to them when the need for a position arises.

Advantages of External Sources:

a. It brings large number of applicants.


b. Organization gets fresh talented candidates from outside which leads to new ideas in the organization.

c. The internal employees will work harder when they have to compete with the outsiders.

Disadvantages of External Sources:

a. It’s a lengthy process as organization has to notify vacancies and wait for applications to initiate selection process.

b. It’s a costly process as a lot of money has to be spent on advertisement.

c. The candidates from outside may not be suitable for organization. There is no guarantee that organization will be able to attract right kinds of people from external sources.


d. There is dissatisfaction among existing staff as they may feel that their chances of promotion may be reduced.