Understanding and Learn, What is the Source of Recruitment in the Organization?

The sources of employees can classify into two types, internal and external. The concept of the study Explains – the Source of Recruitment in the Organization: Internal Sources and their benefits and limitations, External Sources and their benefits and limitations. Filling a job opening from within the firm has the advantages of stimulating preparation for possible transfer of promotion, increasing the general level of morale, and providing more information about job candidates through analysis of work histories within the organization. Also learn, What is the Source of Recruitment in the Organization?

A job posting has a number of advantages. From the view point of the employee, it provides flexibility and greater control over career progress. For the employer, it should result in better matches of employee and job.

Meaning and Sources of Recruitment: Whenever there is a vacancy in the organization, generally it is to fill. To make the candidate avail­able for filling those vacancies, their selection procedure and placement on a proper job comes under the purview of recruitment. As soon as the available vacancies are known, they are advertised through different media and accordingly the applications are collected for the vacant posts. A group of candidates interested in doing the job and are eligible to do, it is created through recruitment.


It is an operative function of human resource management coming under the managerial function called organizing. In the words of Edwin Flippo, ‘recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation’.

In most instances, the jobs are posted on notice boards, though some carry listings in the company newspapers. The posting period is commonly one week, with the final decision for hiring being completed within four weeks.

Internal applications are often restricted to certain employees.

The guidelines for one company including (1) “good” or “better” on most recent performance review; (2) dependable attendance record; (3) not under probationary sanction; and (4) having been in present position for 1 year. The present supervisor must at some time be informed of his or her subordinate’s interest in another job. Some require immediate notification, while others inform only if the employee becomes a prime candidate for the listed opening. The personnel unit acts as a clearing house in screening applications that are unrealistic, preventing an excessive number of bids by a single employee, and counselling employees who are constantly unsuccessful in their attempt to change jobs.

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Inevitably, the firm must go to external sources for lower entry jobs, for expansion, and for positions whose specifications cannot be met by present personnel. Thus the firm has a number of outside sources available, among which are the following:


There is a trend toward more selective recruitment in advertising. This can be effected in at least two ways. First, advertisements can be placed in media read only by particular groups. Secondly, more information about the company, the job, and the job specification can be included in the ad to permit some self-screening.

Employment Agencies:

Additional screening can be affected through the utilization of employment agencies, both public and private. Today, in contrast to their former unsavoury reputation, the public employment agencies in several States are well-regarded, particularly in the fields of unskilled semi-skilled and skilled operative jobs. In the technical and professional areas, however, the private agencies appear to be doing most of the work. Many private agencies tend to specialize in a particular type of worker and job, such as sales, office, executive or engineer.


Employee Referrals:

Friends and relatives of present employees are also a good source from which employees may be drawn. When the labour market is very tight, large employers frequently offer their employees bonus or prizes for any referrals that are hired and stay with the company for a specific length of time. Some companies maintain a register of former employees whose record was good to contact them when there are new job openings for which they are qualified. This method of recruitment, however, suffers from a serious defect that it encourages nepotism, i.e. persons of one’s community or caste are employed, who may or may not be fit for the job.

Schools, Colleges and Professional Institutions:

Offer opportunities for recruiting their students. They operate placement services where complete bio-data and other particulars of the students are available. The companies that need employees maintain contact with Guidance Counsellors of Employment Bureaus and teachers of business and vocational subjects. The prospective employers can review Credentials and interview candidates for management trainees or probationers. Whether the education sought involves a higher secondary certificate, specific vocational training, or a college background with a bachelor’s, masters’ or doctoral degree, educational institutions provide an excellent source of potential employees for entry-level positions in organizations. These general and technical/ professional institutions provide blue-collar applicants, white-collar and managerial personnel.

Labour unions:

Firms with closed or union shops must look to the union in their recruitment efforts. Disadvantages of a monopolistically controlled labour source are offset, at least particularly, by savings in recruitment costs. With one-fifth of the labour force organized into unions, organized labour constitutes an important source of personnel.


Casual applicants:

Unsolicited applications, both at the gate and through the mail, constitute a much-used source of personnel. These can be developed through provision of attractive employment office facilities and prompt and courteous replies to unsolicited letters.

Professional organizations or recruiting firms or executive recruiters:

Maintain complete information records about employed executives. These firms are looked upon as ‘head hunters’, ‘raiders’ and ‘pirates’ by organizations which lose personnel through their efforts. However, these same organizations may employ “executive search firms” to help them find talent. These consulting firms recommend persons of high calibre for managerial, marketing and production engineers’ posts.

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Indoctrination seminars for colleges professors:

Are arranged to discuss the problem of companies and employees. Professors are invited to take part in these seminars. Visits to plants and banquets are arranged so that the participant professors may be favourably impressed. They may later speak well of a company and help it in getting the required personnel.


Unconsolidated applications:

For positions in which large numbers of candidates are not available from other sources, the companies may gain keeping files of applications received from candidates who make direct enquiries about possible vacancies on their own, or may send unconsolidated applications. The information may be indexed and filed for future use when there are openings in these jobs.


The hiring of relatives will be an inevitable component of recruitment programmes in family-owned firms, such a policy does not necessarily coincide with hiring on the basis of merit, but interest and loyalty to the enterprise are offsetting advantages.


To adjust to short-term fluctuations in personnel needs, the possibility of leasing personnel by the hour or day should be considered. This practice has been particularly well-developed in the office administration field. The firm not only obtains well-trained and selected personnel but avoids any obligation in pensions, insurance, and other fringe benefits.


Voluntary organizations:

Such as private clubs, social organizations might also provide employees – handicaps, widowed or married women, old persons, retired hands, etc., in response to advertisements.

Computer data banks:

When a company desires a particular type of employee, job specifications and requirements are fed into a computer, where they are matched against the resume data stored therein. The output is a set of resumes for individuals who meet the requirements. This method is very useful for identifying candidates for hard-to-fill positions which call for an unusual combination of skills.

Sources of Recruitment:

The eligible and suitable candidates required for a particular job are available through various sources.


Internal Sources of Recruitment:

  1. Promotions:

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.

  1. Retirements:

The retired employees may be given the extension in their service in case of non­-availability of suitable candidates for the post.

  1. 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.

  1. Transfer:

Employees may be transferred from one department to another wherever the post becomes vacant.

  1. Internal advertisement:

The existing employees may be interested in taking up the vacant jobs. As they are working in the company for a 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.

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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 the 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 the promotion or selected.
  • It may lead to encouragement to favoritism.
  • It may not be always in the good interest of the organization.

External Sources of Recruitment:

  1. 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 the job description and job specification are made available to the public in general.

  1. 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.

  1. Placement agencies:

A databank of candidates is sent to organizations for their selection purpose and agencies get the commission in return.

  1. 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.

  1. Walk in interviews:

These interviews are declared by companies on the specific day and time and conducted for selection.

  1. E-recruitment:

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.

  1. Competitors:

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 the advertisement is to be given through press and training facilities to be provided for new candidates.
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