Sources of Recruitment

After the finalization of recruitment plan indicating the number and type of prospective candidates, they must be attracted to offer themselves for consideration to their employment. This necessitates the identification of sources from which these candidates can be attracted. Some companies try to develop
new sources, while most only try to tackle the existing sources they have. These sources, accordingly, may be termed as internal and external.
i.                   Internal Sources
It would be desirable to utilize the internal sources before going outside to attract the candidates. Yoder and others suggest two categories of internal sources including a review of the present employees and nomination of candidates by employees. Effective utilization of internal sources necessitates an understanding of their skills and information regarding relationships of jobs. This will provide possibilities for horizontal
and vertical transfers within the enterprise eliminating simultaneous attempts to lay off employees in one department and recruitment of employees with similar qualification for another department in the company.
Promotion and transfers within the plant where an employee is best suitable improves the morale along with solving recruitment problems. These measures can be taken effectively if the company has established job families through job analysis programmes combining together similar jobs demanding similar employee characteristics. Again, employees can be requested to suggest promising candidates. Sometimes, employees
are given prizes for recommending a candidate who has been recruited. Despite the usefulness of this system in the form of loyalty and its wide practice, it has been pointed out that it gives rise to cliques posing difficulty to management. Therefore, before utilizing this system attempts should be made to determine through research whether or not employees thus recruited are effective on particular jobs. Usually, internal
sources can be used effectively if the numbers of vacancies are not very large, adequate, employee records are maintained, jobs do not demand originality lacking in the internal sources, and employees have prepared themselves for promotions.
Merits of Internal Sources: 
The following are the merits of internal sources of recruitment:
1.     It creates a sense of security among employees when they are assured that they would be preferred in filling up vacancies.
2.     It improves the morale of employees, for they are assured of the fact that they would be preferred over outsiders when vacancies occur.
3.     It promotes loyalty and commitment among employees due to sense of job security and opportunities for advancement.
4.     The employer is in a better position to evaluate those presently employed than outside candidates. This is because the company maintains a record of the progress, experience and service of its employees.
5.     Time and costs of training will be low because employees remain familiar with the organization and its policies.
6.     Relations with trade unions remain good. Labor turnover is reduced.
As the persons in the employment of the company are fully aware of, and well acquainted wit, its policies and know its operating procedures, they require little training, and the chances are that they would stay longer in the employment of the organization than a new outsider would.
7.     It encourages self-development among the employees. It encourages good individuals who are ambitious.
8.     It encourages stability from continuity of employment.
9.     It can also act as a training device for developing middle and top-level managers.
Demerits of Internal Sources: 
However, this system suffers from certain defects as:
1.     There are possibilities that internal sources may “dry up”, and it may be difficult to find the requisite personnel from within an organization.
2.     It often leads to inbreeding, and discourages new blood from entering and organization.
3.     As promotion is based on seniority, the danger is that really capable hands may not be chosen. The likes and dislikes of the management may also play an important role in the selection of
4.     personnel.
5.     Since the learner does not know more than the lecturer, no innovations worth the name can be made. Therefore, on jobs which require original thinking (such as advertising, style, designing and basic research), this practice is not followed.
6.     This source is used by many organizations; but a surprisingly large number ignore this source, especially for middle management jobs.

ii.                 External Sources
DeCenzo and Robbins remark, “Occasionally, it may be necessary to bring in some ‘new blood’ to broaden the present ideas, knowledge, and enthusiasm.” Thus, all organizations have to depend on external sources of recruitment. Among these sources are included:
·  Employment agencies.
·  Educational and technical institutes. and
·  Casual labor or “applicants at the gate” and nail applicants.
Public and private employment agencies play a vital role in making available suitable employees for different positions in the organizations. Besides public agencies, private agencies have developed markedly in large cities in the form of consultancy services. Usually, these agencies facilitate recruitment of technical and professional personnel. Because of their specialization, they effectively assess the needs of their clients
and aptitudes and skills of the specialized personnel. They do not merely bring an employer and an employee together but computerize lists of available talents, utilizing testing to classify and assess applicants and use advanced techniques of vocational guidance for effective placement purposes.
Advantages of External Recruitment:
External sources of recruitment are suitable for the following reasons:
1.     It will help in bringing new ideas, better techniques and improved methods to the organization.
2.     The cost of employees will be minimized because candidates selected in this method will be placed in the minimum pay scale.
3.     The existing employees will also broaden their personality.
4.     The entry of qualitative persons from outside will be in the interest of the organization in the long run.
5.     The suitable candidates with skill, talent, knowledge are available from external sources.
6.     The entry of new persons with varied expansion and talent will help in human resource mix.
Disadvantages of External Sources:
1.     Orientation and training are required as the employees remain unfamiliar with the organization.
2.     It is more expensive and time-consuming. Detailed screening is necessary as very little is known about the candidate.
3.     If new entrant fails to adjust himself to the working in the enterprise, it means yet more expenditure on looking for his replacement.
4.     Motivation, morale and loyalty of existing staff are affected, if higher level jobs are filled from external sources. It becomes a source of heart-burning and demoralization among existing employees.