Posted by Anjali Kaur on Oct 25, 2021
Sources of Recruitment

What is Recruitment? Sources, Merits, and Limitations

Recruitment means inducing or attracting more and more candidates to apply for vacant job positions in the organization. Recruitment sources could be internal or external. Let’s elaborate on; What is Recruitment? Sources, Merits, and Limitations.

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Recruitment is the process of finding possible candidates for a job.

Sources of Recruitment

What is Recruitment? Sources, Merits, and Limitations

The process of recruitment precedes the process of selection of the right candidate for the given position in the organization. Recruitment seeks to attract suitable applicants to apply for available jobs.

1. Internal Sources of Recruitment

When the vacant job position is filled by the existing employees of the organization, it is called internal sources of recruitment. There are 2 important sources of internal recruitment:

a. Transfers

Transfers mean shifting employees from one job position to another at the same level of authority. With the transfers, there is no change in compensation level (Salary), no change in rank or responsibility. Only the place of working change.

For example, a Banker from Punjab National Bank in Delhi got transferred to Punjab National Bank in Ludhiana.

b. Promotion

It refers to the shifting of employees from one job position to another with a higher level of authority. In promotion, the authority level, rank, responsibilities of employees improve or increase and there is an increase in salary also.

For example, promotion of a teacher from Post Graduate Teacher to Head of the Department.

Merits of Internal Sources of Recruitment

a. Higher motivation level

It motivates the existing employees to improve their performance. A promotion at a higher level may cause, a chain of promotion at lower levels in the organization. This way employees work with commitment and loyalty and remain satisfied with their jobs.

b. Simple process

Internal sources of recruitment also simplify the process of selection and placement and it is an economical as well as a reliable way of recruitment since the candidates are already known to the organization.

c. Develop future managers

The transfer is a tool for training the employees to prepare them for higher jobs.

d. No over or under staffing

The transfer has the benefit of shifting the workforce from the surplus departments to those where there is a shortage of staff.

e. Cheaper

Filling jobs internally is cheaper as compared to getting candidates from external sources.

Limitations of Internal Sources of Recruitment

a. Lack of fresh talent

When vacancies are filled through internal promotion, the scope for induction (introduction) of fresh talent is reduced. Hence, it stops the infusion of new blood.

b. Decrease in enthusiasm level

The employees may become lethargic if they are sure of time bond promotion.

c. Not suitable for new enterprise

The new organization can not use internal sources of recruitment.

d. Negative competition

The spirit of competition among the employees may be hampered.

e. Low productivity

Frequent transfers of employees may often reduce the productivity of the organization.

External Sources of Recruitment

When the candidates from outside the organization are invited to fill the vacant job position then it is known as external recruitment. Whenever a large number of job positions are vacant the external recruitment is preferred. The following are the important sources of external sources of recruitment:

1. Direct recruitment/ Factory gate/ Gate Hiring

Under direct recruitment, a notice is placed on the notice-based of the organization specifying the details of the jobs available. The people who are interested in those jobs walk-in for interviews. This method of external recruitment is most suitable for unskilled job positions.

For example, sweeper, peon, salesmen, etc.

2. Casual Callers

Generally, the large organization maintains an application file in which they keep all the pending applications that the job seekers leave with the reception. Sometimes, the applications of suitable candidates who were not selected in the previous year’s selection process are also kept in the application file. This application file is considered a waiting list. Whenever there is a job vacancy the suitable candidates from the waiting list are called.

3. Advertisement

The most common and popular method of external recruitment is advertising about the vacant job position. For example, for high rank and skilled job positions, ads are given in the newspaper like Times of India, etc.

4. Employment Exchanges

These are run by the government and are regarded as a good source of recruitment for unskilled and skilled jobs. The job seekers leave their resume and details of their qualifications with the employment exchanges and when the organization approaches employment exchanges the suitable candidates are sent.

5. Placement agencies are managment consultants

Placement agencies provide nationwide services of match the demand and supply of the workforce. These agencies invite resumes and records from various job seekers and send them to suitable clients. These agencies charge fees for providing such service.

6. Campus recruitment

Colleges and institutes of management and technology have become a popular source of recruitment for technical, professional, and managerial jobs. The big organization visits these colleges and institutes for recruiting fresh graduates.

7. Recommendations of employees

Many firms encourage their employees to recommend the names of their relatives, friends, and other known people to fill the vacant job position. The organization prefers recommendations by trusting the goodwill of the present employees.

8. Labour contractors

Jobbers and contractors are the people who keep in touch with the laborers in the villages and rural areas and whenever there is a vacancy or requirement for labor in a factory or in the construction site, they bring the labor from villages and supply it to the businessmen.

9. Advertising on TV

A new trend of external recruitment is telecast on various channels regarding vacant job positions. They telecast the requirement of the job along with the qualification necessary to apply.

10. Web publishing

In internal, there are certain websites specifically designed to provide information regarding job seekers and companies that have vacant job positions.


Merits of External Sources of Recruitment

1. Fresh talent

With external sources of recruitment, fresh and new talent came to the organization.

2. Wider Choice

Through external recruitment, the organization gets a wider choice.

3. Qualified personnel

By using external recruitment the management can get qualified and trained persons.

4. Latest technological knowledge

Through campus, placement organizations can get employees with the latest technological knowledge.

5. Competitive spirit

Through external recruitment when outsiders join the organization, this develops a competitive spirit in existing employees of the organization.

Demerits of External Recruitment

  1. The morale of existing employees falls.
  2. The new employees may not adjust in the rules and regulation of the organisation which means more chances of turnover.
  3. It is expensive as to invite the outsiders to apply for the job. Companies have to bear heavy burden of advertising.
  4. Lengthy process, as it takes longer time.

Thank You!

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