Internal and External Sources of Recruitment of Employees!

Learn, What is Internal and External Sources of Recruitment of Employees?

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Sources of Recruitment of Employees: Internal and External Sources (with its Advantages and Disadvantages)! The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of the recruitment process. Also learn, Recruitment, Internal and External Sources of Recruitment of Employees!

The candidates may be available inside or outside the organization. Basically, there are two sources of recruitment i.e., internal and external sources.

(A) Internal Sources:

Best employees can be found within the organization… When a vacancy arises in the organization, it may give to an employee who is already on the payroll. Also, Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. The employees can inform of such a vacancy by internal advertisement. Also learn, What is the Internal Sources of Recruitment?

Methods of Internal Sources:

The Internal sources are given below:

1. Transfers:

The transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.

2. Promotions:

Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities, and more pay. The higher positions falling vacant may fill up from within the organization. A promotion does not increase the number of persons in the organization.

As well as, A person going to get a higher position will vacate his present position. The promotion will motivate employees to improve their performance so that they can also get the promotion.

3. Present Employees:

The present employees of a concern are informing about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieving of looking out prospective candidates.

The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. Also, the existing employees take full responsibility for those recommended by them and also ensure their proper behavior and performance.

Advantages of Internal Sources:

The Following are The Advantages of Internal Sources:

1. Improves morale:

When an employee from inside the organization 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 fulfills the other requirements).

2. No Error in Selection:

When an employee is selecting from inside, there is the least possibility of errors in selection since every company maintains a complete record of its employees and can judge them in a better manner.

3. Promotes Loyalty:

It promotes loyalty among the employees as they feel secure on account of chances of advancement.

4. No Hasty Decision:

The chances of hasty decisions are completely eliminating as the existing employees well try and can rely upon.

5. The economy in Training Costs:

The existing employees are fully aware of the operating procedures and policies of the organization. The existing employees require little training and it brings the economy to training costs.

6. Self-Development:

It encourages self-development among the employees as they can look forward to occupying higher posts.

Disadvantages of Internal Sources:

(i) It discourages capable persons from outside to join the concern.

(ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organization.

(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot follow.

(iv) If the 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 using as a source of recruitment for lower positions. It may lead to nepotism and favoritism. The employees may employ on the basis of their recommendation and not suitability.

(B) External Sources:

All organizations have to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needs when expansions are undertaking. Also learn, What is the External Sources of Recruitment?

The external sources are discussing below:

Methods of External Sources:

1. Advertisement:

It is a method of recruitment frequently use for skill workers, clerical and higher staff. Advertisement can give in newspapers and professional journals. These advertisements attract applicants in a large number of highly variable quality.

Preparing good advertisement is a specializing task. If a company wants to conceal its name, a ‘blind advertisement’ may give asking the applicants to apply to Post Bag or Box Number or to some advertising agency.

2. Employment Exchanges:

Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts etc., it is often using as a source of recruitment. In certain cases, it has been made obligatory for the business concerns to notify their vacancies to the employment exchange. In the past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the employment exchanges.

3. Schools, Colleges, and Universities:

Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spot during the course of their studies. Junior level executives or managerial trainees may recruit in this way.

4. Recommendation of Existing Employees:

The present employees know both the company and the candidate is recommending. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them.

In certain cases, rewards may also be given if candidates recommended by them are actually selected by the company. If recommendation leads to favoritism, it will impair the morale of employees.

5. Factory Gates:

Certain workers present themselves at the factory gate every day for employment. This method of recruitment is very popular in India for unskilled or semi-skilled labor. The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for the vacancy.

6. Casual Callers:

That personnel who casually come to the company for employment may also consider for the vacant post. It is a most economical method of recruitment. In the advanced countries, this method of recruitment is very popular.

7. Central Application File:

A file of past applicants who were not selected earlier may maintain. In order to keep the file alive, applications in the files must check at periodical intervals.

8. Labour Unions:

In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is instability of employment) all recruits usually come from unions. It is advantageous from the management point of view because it saves expenses of recruitment. However, in other industries, unions may ask to recommend candidates either as a goodwill gesture or as a courtesy towards the union.

9. Labour Contractors:

This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in brick kiln industry. The contractors keep themselves in touch with the labor and bring the workers to the places where they are requiring. They get the commission for the number of persons supplied by them.

10. Former Employees:

In case employees have been laid off or have left the factory on their own, they may take back if they are interested in joining the concern.

11. Other Sources:

Apart from these major sources of external recruitment, there are certainly other sources which are exploiting by companies from time to time. Also, These include special lectures delivering by the recruiter in different institutions, though apparently, these lectures do not pertain to recruitment directly.

Then there are video files which are sent to various concerns and institutions so as to show the history and development of the company. These films present the story of the company to various audiences, thus creating interest in them.

Various firms organize trade shows which attract many prospective employees. Also, Many a time advertisements may make for a special class of workforce who worked prior to their marriage.

These ladies can also prove to be the very good source of the workforce. Similarly, there is the labor market consisting of physically handicapped. Visits to other companies also help in finding new sources of recruitment.

Merits of External Sources:

1. Availability of Suitable Persons:

Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organization. They will also be suitable as per the requirements of skill, training, and education.

2. Brings New Ideas:

The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organization in a competitive position.

3. Economical:

This method of recruitment can prove to be economical because new employees are already training and experience and do not require much training for the jobs.

Demerits of External Sources:

1. Demoralisation:

When new persons from outside join the organization then present employees feel demoralized because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues in other concerns.

2. Lack of Co-Operation:

The old staff may not co-operate with the new employees because they feel that their right has been snatch away by them. This problem will be acute especially when persons with higher positions are recruiting from outside.

3. Expensive:

The process of recruiting from outside is very expensive. Also, it starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to repeat.

4. The problem of Maladjustment:

There may be a possibility that the new entrants have not been able to adjust to the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. These things have the adverse effect on the working of the organization.

Suitability of External Sources of Recruitment:

External Sources of Recruitment are Suitable for The Following Reasons:

(i) The requiring qualities such as will, skill, talent, knowledge etc., are available from external sources.

(ii) It can help in bringing new ideas, better techniques and improving methods to the organization.

(iii) The selection of candidates will without preconceive notions or reservations.

(iv) The cost of employees will minimal because candidates selected in this method will place the minimum pay scale.

(v) The entry of new persons with varied experience and talent will help in human resource mix.

(vi) The existing employees will also broaden their personality.

(vii) The entry of qualitative persons from outside will be in the long-run interest of the organisation.

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