Sources of Recruitment: External and
Internal Sources of Recruitment
The sources included under each category are depicted in the
following figure 6.1.
Now each of these discussed one by one.
A. Internal Sources:
1. Present Employees:
Promotions and transfers from among the present employees can be a
good source of recruitment. Promotion implies upgrading of an
employee to a higher position carrying higher status, pay and
responsibilities. Promotion from among the present employees is
advantageous because the employees promoted are well acquainted
with the organisational culture, they get motivated, and it is cheaper
also.
Promotion from among present employees also reduces the require-
ment for job training. However, the disadvantage lies in limiting the
choice to a few people and denying hiring of outsiders who may be
better qualified and skilled. Furthermore, promotion from among
present employees also results in inbreeding which creates frustration
among those not promoted.
Transfer refers to shifting an employee from one job to another
without any change in the position/post, status and responsibilities.
The need for transfer is felt to provide employees a broader and varied
base which is considered necessary for promotions. Job rotation,
involves transfer of employees from one job to another on the lateral
basis.
2. Former Employees:
Former employees are another source of applicants for vacancies to be
filled up in the organisation. Retired or retrenched employees may be
interested to come back to the company to work on a part-time basis.
Similarly, some former employees who left the organisation for any
reason may again be interested to come back to work. This source has
the advantage of hiring people whose performance is already known to
the organisation.
3. Employee Referrals:
This is yet another internal source of recruitment. The existing
employees refer their family members, friends and relatives to the
company as potential candidates for the vacancies to be filled up in the
organisation.
This source serves as one of the most effective methods of recruiting
people in the organisation because employees refer to those potential
candidates who meet the company requirements known to them from
their own experience. The referred individuals are expected to be
similar in type in terms of race and sex, for example, to those who are
already working in the organisation.
4. Previous Applicants:
This is considered as internal source in the sense that applications
from the potential candidates are already lying with the organisation.
Sometimes, the organisations contact through mail or messenger
these applicants to fill up the vacancies particularly for unskilled or
semi- skilled jobs.
Evaluation of Internal Source:
Advantages of internal source of recruitment
The advantages of the internal source of recruitment include the
following:
1. Familiarity with own employees:
The organisation has more knowledge and familiarity with the
strengths and weaknesses of its own employees than of strange and
unknown outsiders.
2. Better use of the talent:
3. Economical Recruitment:
4. Improves Morale:
.
5. A Motivator:
Disadvantages:
The main drawbacks associated with internal recruitment
are as follows:
1. Limited Choice:
2. Discourages Competition:
3. Stagnation of Skills:
4. Creates Conflicts:
B. External Sources:
The main ones are listed as follows:
1. Employment Exchanges:
2. Employment Agencies:
3. Advertisement:
Advertisement is perhaps the most widely used method for generating
many applications. This is because its reach is very high. This method
of recruitment can be used for jobs like clerical, technical and
managerial. The higher the position in the organisation, the more
specialized the skills or the shorter the supply of that resource in the
labour market, the more widely dispersed the advertisements is likely
to be. For example, the search for a top executive might include
advertisements in a national daily like ‘The Hindu’.
provided information on minimum qualifications while only 18.3% of
private sector organisations offered this information. Finally, only
5.6% of the public and 1.1% of the private organisations provided
information on selection process.
4. Professional Associations:
.
The professional associations are particularly useful for attracting
highly skilled and professional personnel. However, in India, this is
not a very common practice and those few that provide such kind of
service have not been able to generating a large number of
applications.
5. Campus Recruitment:
This is another source of recruitment. Though campus recruitment is a
common phenomenon particularly in the American organisations, it
has made its mark rather recently Of late, some organisations such as
HLL, HCL. L &T, Citi Bank, ANZ Grindlays, Motorola, Reliance etc., in
India have started visiting educational and training
institutes/campuses for recruitment purposes..
6. Deputation:
Another source of recruitment is deputation, i.e., sending an employee
to another organisation for a short duration of two to three years. This
method of recruitment is practiced, in a pretty manner, in the
Government Departments and public sector organisations. Deputation
is useful because it provides ready expertise and the organisation does
not have to incur the initial cost of induction and training.
7. Word-of-Mouth:
Some organisations in India also practice the ‘word-of-mouth’ method
of recruitment. In this method, the word is passed around the possible
vacancies or openings in the organisation. Another form of word-of-
mouth method of recruitment is “employee-pinching” i.e., the
employees working in another organisation are offered an attractive
offer by the rival organisations. This method is economic, both in
terms of time and money.
8. Raiding or Poaching:
Raiding or poaching is another method of recruitment whereby the
rival firms by offering better terms and conditions, try to attract
qualified employees to join them. This raiding is a common feature in
the Indian organisations.For example, several executives of HMT left
to join Titan Watch Company, so also exodus of pilots from the Indian
Airlines to join private air taxi operators.
Evaluation of External Sources:
Like internal sources of recruitment, external sources are mixed of
advantages and disadvantages.
The following are the main advantages:
1. Open Process:
Being a more open process, it is likely to attract large number of
applicants/ applications. This, in turn, widens its options of selection.
2. Availability of Talented Candidates:
With large pool of applicants, it becomes possible for the organisation
to have talented candidates from outside. Thus, it introduces new
blood in the organisation.
3. Opportunity to select the best candidates:
With large pool of applicants, the selection process becomes more
competitive. This increases prospects for selecting the best candidates.
4. Provides healthy competition:
As the external members are supposed to be more trained and
efficient. With such a background, they work with positive attitude
and greater vigour. This helps create healthy competition and
conducive work environment in the organisation.
However, the external sources of recruitment suffer from certain
disadvantages too:
These are:
1. Expensive and Time Consuming:
2. Unfamiliarity with the Organisation:
3. Discourages the Existing Employees:
