Internal sources of recruitment and its advantages & Disadvantages


What is Internal Source of Recruitment?

The internal source of recruitment is a process under which the recruitment process is conducted from within the organization rather than performing it outside the internal boundaries of the organization as an external source of recruitment. It means hiring for the required vacancies from within the current working employees.

It starts with inducing the working employees of the organization to apply for the current vacancies of the company. The employees are informed about the opening through various methods like issuing internal advertisement in the company, words of mouth and various communication method through the sequence.

This approach is followed by many companies and helping them in various ways like first of all it encourages the current most talented employees, bring down the turnover of the employees, brings down the cost involved and helps in getting the competitive benefits.

Types of Internal Recruitment Methods

Doing Transfers

It means shifting the person from one branch or department to another branch or department with no change in status, responsibility and salary structure.

Providing promotions

It means filling up the vacant positions at high positions by promoting the employees at lower positions according to their skills and abilities.

Doing demotions

It means lowering the positions of the current working employees according to their working conditions which are found to be unfavorable by the concerned management.

Contacting employees who are retired

Under it, the employees who have been retired are asked to re-join the company.


Sources of Recruitment: Internal and External


Advantages of Internal Sources of Recruitment

Simple and time-saving process

This process is simple, reliable and less time taking process. As there is limited number of applicants in this process which are often and known to the company, therefore their scrutinizing process does not take much time and also don’t involves hectic processes unlike the external sources of recruitment.

Economical process

Another advantage of this process is that the cost involved in the recruitment done through this process is much less as compared to external sources. As there are only less number of candidates under this process, the advertisement is also done to inform limited number of process. Also, number of processes involved in the recruitment process under this are less thereby cutting down the cost.

Helps in improving the morale of the employees

When vacancies at the higher positions are filled by promoting the most efficient and talented employees working at lower positions. This process brings a sense of motivation among the working employees and they began to compete with each other thereby improving their progress.

Fewer chances of mistakes in selection

When the recruitment drive is conducted from within the organization and employees are selected from inside the probability of error in recruitment process gets reduced as every company maintains a complete database of its employees and can easily scrutiny them and can take the decision about them easily.

Training costs are reduced

The cost involved in training the current working employees is less as compared to training the ones who are external. Internal employees are fully aware of the culture of the organization and needless effort on training thereby reducing the training costs.

Encourages employees for self-development

When the employees are recruited for higher posts from within the organization it motivates them for self-development within them and they look forward to higher posts in the future.

Increases the loyalty

This method also brings loyalty among the current working employees as they feel secure and think that the organization cares for them as they are provided the chance of advancement according to their skills.

Results in non-hasty decision

As all the internal employees are well known to the company and their database is maintained. So, the chances of hasty and wrong decisions are completely eliminated.

Disadvantages of Internal Sources of Recruitment

Prevents entry of fresh talent

This method does not provide an option for recruiting from outside the organization and no new blood enters the organization. It prevents the entry of new skills, talent, and knowledge in the organization.

Have a limited scope

This method has limited scope as it is not always possible to recruit and get all types of candidates from within the organization. All types of individuals according to vacant positions may not be present in the organization.

Biases in the recruitment process

There may be unfairness in promoting and transferring the employees by the concerned management which may lead to dispute among the employees.

Demotivate some employees

This process may lead to unhappiness among some of the employees who are not motivated. They may feel biased and uncomfortable to work in the organization leading to distress among them.

Click here: Q&A