Commerce · Ch 10 — Recruitment Methods
Internal vs External Sources of Recruitment
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Internal vs External Sources of Recruitment
Both internal and external sources have a legitimate place in an organisation's overall recruitment strategy — most organisations use a mix of the two, choosing between them depending on the nature and level of the vacancy to be filled (for example, favouring internal promotion for a senior post while using campus recruitment or media advertisement for entry-level hiring).
| Basis | Internal Sources | External Sources |
|---|---|---|
| Meaning | Filling vacancies from among the organisation's own existing employees (transfer, promotion, re-employment) | Filling vacancies by bringing in candidates from outside the organisation |
| Cost | Generally cheaper — no advertising or agency fees | Generally costlier — advertising, agency fees, and a longer process |
| Time taken | Quicker, since the pool of candidates is already known | Slower, since sourcing and screening outside candidates takes longer |
| Employee morale | Tends to motivate existing employees who see a real chance of advancement | Can lower morale of existing employees passed over for an outside hire |
| Availability of fresh ideas/talent | Limited — the same existing pool of people and ideas | Wider — brings genuinely new skills, experience, and perspectives |
| Familiarity with the organisation | Candidates already know the organisation's culture and procedures | Candidates are unfamiliar and need a longer induction/settling-in period |
| Suitability | Best suited for vacancies that can be filled by developing existing employees (e.g. promotions) | Best suited when specialised skills are needed, or when the organisation is expanding and needs more people than its existing workforce can supply |