Internal and External Sources of Recruitment

Home Assignment Answers Internal and External Sources of Recruitment

Attracting new and potential candidates and encouraging them to apply for the vacant job positions in the organization refers to the process of recruitment. When done in a planned and systematic way, it can help in hiring the right type of candidates.

Finding the desired people is becoming a difficult task as human resources are one of the scarce resources. That is why the organizations are now relying on the employment consultancies to find the skilled and qualified persons who can best suit the vacant job profile. For some organizations, hiring employees from the employment agencies may not be suitable as it is expensive so they make use of other sources of recruitment.

Basically, there are two types of sources of recruitment:

  1. Internal sources
  2. External sources


Encouraging the employees to apply for the job openings from within the organization refers to internal sources of recruitment. The employees get to know about the job openings through internal advertisements, communication through the employers or word of mouth. The main aim of this approach is to motivate the existing employees, reducing employee turnover, reducing employee absenteeism and to reduce the hiring cost.

Following are the internal sources of recruitment:

  • Transfers

When the employees are transferred from one department to another but to the similar job position, it is known as a transfer. It does not include any change or increase in salary, responsibility or position rather it involves minimizing boredom and monotony. The main objective of transferring the employees is to fill the vacancies with potential existing employees.

  • Promotions

When the employees are promoted on the basis of their skills and abilities, the process refers to fulfilling the vacancies with the help of promotion. It includes change or increase in salary, position, responsibility, and status. When the employees are able to get higher positions on the basis of their performance, it helps in reducing employee turnover and gives the employees a sense of accomplishment.

  • Demotions

Sometimes, the positions of the employees can be lowered by the employers because of unsatisfactory performance. Such process refers to demotions. In this case, recruitment is done by giving lower positions to the employees.

  • Reference by the employees of the organization

Existing employees can inform their friends or relatives about the vacancies in the organization. In many companies, employees are allowed to refer potential candidates that suit the vacant job profile in the best way.

  • Retirement of employees

In case, an organization is not able to fill the vacancy with the help of the above-mentioned internal sources of recruitment, they may call the retired employees for fulfilling the positions.


When the candidates external to the organization are asked to fill the vacant job positions, it comes under the category of external sources of recruitment. Various methods are used to inform the people about the job openings such as:

  1. Advertisements
  2. Job portals
  3. Website of the company
  4. Social media
  5. Placement agencies00
  6. Campus interviews
  • Advertisements

Giving an advertisement for the job opening is the best way to find skilled and efficient candidates. It is a method which helps in enhancing the brand image of the organization. The two ways of giving advertisement are print media and electronic. The main benefit of using this source of advertisement is that it is cheaper than other external sources of recruitment.

  • Job portals

Job portals are playing a vital role in recruiting employees with the help of technology and the internet. Job portals are responsible for informing the candidates about the job openings and informs the employers about the attractive packages and benefits.

  • Website of the company

Many organizations set up their websites to inform the candidates about the vacant job positions. Websites help in attracting skilled and qualified candidates.

  • Social media

Informing the candidates about the vacant positions through social networking sites helps in filling the positions with highly qualified and skilled candidates.

  • Placement agencies

Placement agencies help in finding the right candidate in a very less time as compared to other sources. By using different techniques, the resumes of the candidates are filtered by the agencies so that they can forward it to the organizations for more processing. The only disadvantage of this source is that the organizations have to pay a commission to the agencies on recruiting the candidates.

  • Campus interviews

From all the above methods, this is the easiest and economical method. The interview is conducted in the educational institutes and universities to provide placements for the most deserving students after they have completed their studies.

Also read: Process of taining

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