Internal and External Sources of Recruitment


Recruitment is the process of attracting the potential candidates and motivating them to apply for the jobs or selecting skilled and right candidates from the pool of applicants and appointing them for right jobs. Here strategic thinking and decision making can help in finding the potential candidates. Human resources are one of the scarce resources and it is becoming a challenge to find the right candidate for the right job in the organizations.

So organizations are approaching consultancies to find the skilled and efficient employees to get a competitive advantage. Approaching recruitment agencies can give better results, but it is expensive and may not suitable for all organizations.

Recruitment involves searching for the right candidates and motivating them to apply for the openings in the organization. Here sources of recruitment are two types i.e., internal sources and external sources.

Sources of recruitment

Internal sources of recruitment

Internal sources of recruitment involve motivating the employees of the organization to apply for the openings within the organization. Job openings are informed to the employees of the same organization by giving internal advertisements, word of mouth or communication through the hierarchy. Many organizations are practicing this approach to motivate the skilled employees of the organization, to reduce the employee turnover, to reduce the cost and to get a competitive advantage. Various methods of internal sources or recruitment are as follows.


The employees of the organization are transferred to the similar jobs of other departments. It may not involve a change in salary, responsibility, and position of the job. Transfers help in reducing the boredom and monotony of the employees or it may be used to fill the vacancies with suitable internal candidates.


Promotions involve vacancies of the organization are filled by promoting the skilled employees to the suitable jobs and it can motivate the employees by giving higher position, increased salary, status, and responsibility. Promotions can help in reducing employee turnover by creating the hope of getting higher positions.


Depending on the performance of the employees of the organizations, sometimes managers have to take decisions regarding lowering the positions of few employees of the organization. These employees can act as a source of recruitment to the lower positions.

4.Employees of the organization

Employees of the organization communicate or inform about the vacant positions of the organization to their friends and relatives. In many organizations, they allowed referring potential candidates for the suitable vacancies.

5.Retired employees

If the organizations do not find the right persons to fulfill the key managerial positions then they call back the retired employees for achieving the objectives.

Advantages of internal sources recruitment

  • When the existed employees are given a chance to get the higher positions of the organization then the employee loyalty increases towards the organization.
  • It highly motivates the employees and helps in maximizing the job satisfaction.
  • Existed employees of the organization are well known about the organization culture.
  • Internal sources of recruitment highly reduce efforts and cost.
  • It helps in reducing the employee turnover.
  • It creates a scope to get a competitive advantage by recruiting the skilled employees for the higher positions.
  • It helps in maximizing job security and job satisfaction
  • Transfers from one department to another department helps in eliminating boredom and monotony in employees.
  • It helps in reducing the efforts of induction programs.

Disadvantages of internal sources of recruitment

  • Internal sources of recruitment reduce the scope of finding skilled and more efficient people.
  • The introduction of new methods and strategies may not always possible with this approach.
  • Losing more efficient persons from the external environment becomes a competitive advantage to the competitors.
  • This approach is not suitable for all the organizations

External sources of recruitment

External sources of recruitment involve motivating the skilled and more efficient candidates external to the organization to apply for the vacant positions in the organization. Job openings are informed to the external environment by using various methods such as advertisements, campus recruitment, employment exchanges, walk in interviews, organizational websites, job fairs, and job portals.


To find the skilled and more efficient manpower giving advertisement for the vacant job position is the better way. Advertisements help in attracting the right candidates and in maximizing brand image. Advertisements may be given in print media or electronic media, it gives better results and it is cheaper than approaching third parties.

2.Job portals

With the growing technology and internet usage, job portals are playing a major role in finding right candidates for right jobs. Job portals can inform up to date job alerts to the candidates and offer attractive benefits and packages to the employers. The tools and techniques used by the job portals highly reduce the efforts in finding the skilled candidates.

3.Company’s websites

With the increase in business operations and globalization, the need for human resources is also increasing day by day. To face a severe competition and to reduce the cost during the long run, many companies are setting up their own websites for finding and attracting candidates with competitive skills.

4.Social networking sites

Communicating about vacant positions of the organization through social networking sites help in motivation and attracting the highly skilled and more efficient candidates to apply for the jobs.

5.Placement agencies

Approaching placement agencies reduces the time and efforts to find the right candidates from the pool of skilled candidates. They use various tools and techniques to filter the resumes and they send it to the companies for further processing. The main drawback of this method is commission basis on hiring the candidates.

6.Job fairs and walk in interviews

Walk in interviews and job fairs are declared and conducted by companies to find the skilled candidates. Following this method highly reduces efforts in finding more efficient human resources for the bulk requirement.

7.Campus interviews

This is an easy and economical method helps in finding eligible candidates, through this method organization can find energetic and more competitive candidates for suitable vacancies, this method is beneficial for both the candidates and companies.