The eligible and suitable candidates required for a particular job are available through various sources. These sources can be divided into two categories, as shown in Figure
Internal Sources of Recruitment:
The promotion policy is followed as a motivational technique for the employees who work hard and show good performance. Promotion results in enhancements in pay, position, responsibility and authority. The important requirement for implementation of the promotion policy is that the terms, conditions, rules and regulations should be well-defined.
The retired employees may be given the extension in their service in case of non-availability of suitable candidates for the post.
- Former employees:
Former employees who had performed well during their tenure may be called back, and higher wages and incentives can be paid to them.
Employees may be transferred from one department to another wherever the post becomes vacant.
- Internal advertisement:
The existing employees may be interested in taking up the vacant jobs. As they are working in the company since long time, they know about the specification and description of the vacant job. For their benefit, the advertisement within the company is circulated so that the employees will be intimated.
Benefits of Internal Sources of Recruitment:
- The existing employees get motivated.
- Cost is saved as there is no need to give advertisements about the vacancy.
- It builds loyalty among employees towards the organization.
- Training cost is saved as the employees already know about the nature of job to be performed.
- It is a reliable and easy process.
Limitations of Internal Sources of Recruitment:
- Young people with the knowledge of modem technology and innovative ideas do not get the chance.
- The performance of the existing employees may not be as efficient as before.
- It brings the morale down of employees who do not get promotion or selected.
- It may leads to encouragement to favouritism.
- It may not be always in the good interest of the organization.
External Sources of Recruitment:
- Press advertisement:
A wide choice for selecting the appropriate candidate for the post is available through this source. It gives publicity to the vacant posts and the details about the job in the form of job description and job specification are made available to public in general.
- Campus interviews:
It is the best possible method for companies to select students from various educational institutions. It is easy and economical. The company officials personally visit various institutes and select students eligible for a particular post through interviews. Students get a good opportunity to prove themselves and get selected for a good job.
- Placement agencies:
A databank of candidates is sent to organizations for their selection purpose and agencies get commission in return.
- Employment exchange:
People register themselves with government employment exchanges with their personal details. According to the needs and request of the organization, the candidates are sent for interviews.
- Walk in interviews:
These interviews are declared by companies on the specific day and time and conducted for selection.
Various sites such as jobs.com, naukri.com, and monster.com are the available electronic sites on which candidates upload their resume and seek the jobs.
By offering better terms and conditions of service, the human resource managers try to get the employees working in the competitor’s organization.
Benefits of External Sources of Recruitment:
- New talents get the opportunity.
- The best selection is possible as a large number of candidates apply for the job.
- In case of unavailability of suitable candidates within the organization, it is better to select them from outside sources.
Limitations of External Sources of Recruitment:
- Skilled and ambitious employees may switch the job more frequently.
- It gives a sense of insecurity among the existing candidates.
- It increases the cost as advertisement is to be given through press and training facilities to be provided for new candidates.