Internal Sources of Recruitment

Recruitment sources are broadly divided into internal sources (filling a vacancy from among the organisation's own existing employees) and external sources (bringing in candidates from outside the organisation). This section deals with internal sources; the next section covers external sources.

Internal sources of recruitment:

• Transfers — moving an employee from one job to another, generally of a similar level of responsibility, pay, and status, often to a different department or location. A transfer does not necessarily involve a promotion; it may simply be a lateral move to better utilise an employee's skills or to meet a staffing need elsewhere in the organisation.
• Promotions — moving an employee to a position of higher responsibility, status, and (usually) pay, within the same organisation. Promotion is one of the most commonly used internal sources, since it fills a higher vacancy with someone who already understands the organisation.
• Re-employment of ex-employees — some organisations maintain a practice of recalling former employees who left in good standing (for example, employees who left temporarily for personal reasons, or who were laid off during a slack period) when a suitable vacancy reopens.

Advantages of internal sources:

• Motivates existing employees to improve their performance, since they see a genuine possibility of being promoted or transferred to a better position.
• Cheaper and quicker than external recruitment — there is no cost of advertising or agency fees, and the process is generally faster since the pool of candidates is already known and available.
• Candidates are already familiar with the organisation — its culture, procedures, and people — which reduces the induction and settling-in time needed compared with an outside hire.
• Improves employee loyalty, since employees know the organisation actively looks within before looking outside.
• Selection is comparatively easier, because the organisation already has a track record of the candidate's performance to judge from, rather than relying only on interviews and references.

Disadvantages of internal sources:

• Limits the scope for fresh talent and new ideas entering the organisation, since the same set of existing employees is repeatedly considered. …