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Recruitment is of 2 types 1. Internal Recruitment - is a recruitment which takes place within the concern or organization.

Internal sources of recruitment are readily available to an organization. Internal sources are primarily three - Transfers, promotions and Re-employment of ex-employees. Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also. Internal recruitment may lead to increase in employees productivity as their motivation level increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it refrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done. Internal sources are primarily 3 a. Transfers b. Promotions (through Internal Job Postings) and c. Re-employment of ex-employees - Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also. 2. External Recruitment - External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern. But it involves lot of time and money. The external sources of recruitment include - Employment at factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labour contractors, recommendations etc. a. Employment at Factory Level - This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers have a tendency to shift from one factory to another and therefore they are called as badli workers. b. Advertisement - It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television. c. Employment Exchanges - There are certain Employment exchanges which are run by government. Most of the government undertakings and concerns employ people through such exchanges. Now-a-days recruitment in government agencies has become compulsory through employment exchange. d. Employment Agencies - There are certain professional organizations which look towards recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns. e. Educational Institutions - There are certain professional Institutions which serves as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions, is called

as Campus Recruitment. They have special recruitment cells which helps in providing jobs to fresh candidates. f. Recommendations - There are certain people who have experience in a particular area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled by recommendations of such people. The biggest drawback of this source is that the company has to rely totally on such people which can later on prove to be inefficient. g. Labour Contractors - These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e. for a particular time period. Under conditions when these contractors leave the organization, such people who are appointed have to also leave the concern.
In favor of internal recruitment, the process can create career structure for employees and help to motivate and retain talent. You probably know more about the applicants and adopting this approach means that you can formally recognize the efforts of those who have been groomed for a role or are already doing all or part of a role. And of course, internal recruitment is fairly quick and much more cost-effective than going outside the business The main disadvantage of internal recruitment is that the pool in which you are fishing for talent is limited, leading to a toleration of candidates who are good enough but not great - and that's not good enough! By all means use an internal recruitment process, but use it wisely and don't use it to in such a way as to limit your opportunities to get the right people into your business.

What is internal recruitment? This refers to the filling of job vacancies from within the business - where existing employees are selected rather than employing someone from outside. A business might decide that it already has the right people with the right skills to do the job, particularly if its training and development programme has been effective. How is it done? Internal vacancies are usually advertised within the business via a variety of media: - Staff notice boards - Intranets - In-house magazines / newsletters (for example, Emap, a major publishing business) have a weekly staff magazine devoted solely to advertising jobs within the organisation! - Staff meetings Advantages of internal recruitment - Gives existing employees greater opportunity to advance their careers in the business - May help to retain staff who might otherwise leave - Requires a short induction training period - Employer should know more about the internal candidate's abilities (= a reduced risk of selecting an inappropriate candidate) - Usually quicker and less expensive than recruiting from outside Disadvantages of internal recruitment - Limits the number of potential applicants for a job - External candidates might be better suited / qualified for the job - Another vacancy will be created that has to be filled - Existing staff may feel they have the automatic right to be promoted, whether or not they are competent - Business may become resistant to change; by recruiting from outside, new perspectives and attitudes are brought in

What is external recruitment? This refers to the filling of job vacancies from outside the business (contrast with internal recruitment). Most businesses engage in external recruitment fairly frequently, particularly those that are growing strongly, or that operate in industries with high staff turnover. How is it done? There are several ways of looking for staff outside the business: Employment / recruitment agencies These businesses specialise in recruitment and selection. They often specialise in recruitment for specific sectors (e.g., finance, travel, secretarial). They usually provide a shortlist of candidates based on the people registered with the agency. They also supply temporary or interim employees. The main advantages with using an agency are the specialist skills they bring and the speed with which they normally provide candidates. They also reduce the administrative burden of recruitment. The cost is the high agency fees charged - often up to 30% of the first year wages of anyone employed. Headhunters / Recruitment Consultancies "Upmarket" recruitment agents who provide a more specialised approach to the recruitment of key employees and/or senior management. They tend to "approach" individuals with a good reputation rather than rely on long lists of registered applicants - often using privileged industry contacts to draw up a short list. The cost of using a headhunter or recruitment consultant is high. Job centres Government run agency - good for identifying local candidates for relatively straightforward jobs. The job centre service is free to employers and is most useful for advertising semiskilled, clerical and manual jobs. Government Funded Training Schemes There is a variety of government funded schemes that provide potential recruits, including the New Deal and Modern Apprenticeships. The advantage of these schemes is that government funding lowers the cost of employment and the business can get to know the employee before committing for the long-term. However, relatively few employment requirements are covered by these schemes. Advertising Probably the most common method. Advertising allows the employer to reach a wider audience. The choice of advertising media (e.g. national newspaper, internet, specialist magazine etc) depends on the requirement for the advert to reach a particular audience and, crucially, the advertising budget. Advantages of external recruitment These are mainly the opposite of the disadvantages of internal recruitment. The main one being that a wider audience can be reached which increases the chance that the business will be able to recruit the skills it needs.

Sources of Recruitment The different sources of recruitment are classified into two categories, viz., 1. Internal : sources of recruitment are from within the organisation. 2. External : sources of recruitment are from outside the organisation.

Internal Sources of Recruitment The internal sources of recruitment are:1. Promotions : Promotion means to give a higher position, status, salary and responsibility to the employee. So, the vacancy can be filled by promoting a suitable candidate from the same organisation. 2. Transfers : Transfer means a change in the place of employment without any change in the position, status, salary and responsibility of the employee. So, the vacancy can be filled by transferring a suitable candidate from the same organisation. 3. Internal Advertisements : Here, the vacancy is advertised within the organisation. The existing employees are asked to apply for the vacancy. So, recruitment is done from within the organisation. 4. Retired Managers : Sometimes, retired managers may be recalled for a short period. This is done when the organisation cannot find a suitable candidate. 5. Recall from Long Leave : The organisation may recall a manager who has gone on a long leave. This is done when the organisation faces a problem which can only be solved by that particular manager. After he solves the problem, his leave is extended. Merits of Internal Sources The benefits / advantages / merits of using internal sources of recruitment:1. It is time saving, economical, simple and reliable. 2. There is no need of induction training because the candidate already knows everything about the organisation, the work, the employee, the rules and regulations, etc. 3. It motivates the employees of work hard in order to get higher jobs in the same organisation. 4. It increases the morale of the employees and it improves the relations in the organisation. 5. It reduce executive turnover. 6. It develops loyalty and a sense of responsibility.

Demerits of Internal Sources The limitations / demerits of using internal sources of recruitment:1. It prevents new blood from entering the organisation. New blood brings innovative ideas, fresh thinking and dynamism into the organisation. 2. It has limited scope because it is not possible to fill up all types of vacancies from within the organisation. 3. The position of the person who is promoted or transferred will be vacant. 4. There may be bias or partiality in promoting or transferring persons from within the organisation. 5. Those who are not promoted will be unhappy. 6. The right person may be promoted or transferred only if proper confidential reports of all employees are maintained. This involves a lot of time, money and energy. External Sources of Recruitment The external sources of recruitment are:1. Management Consultants : Management consultants are used for selecting higher-level staff. They act as a representative of the employer. They make all the necessary arrangements for recruitment and selection. In return for their services, they take a service charge or commission. 2. Public Advertisements : The Personnel department of a company advertises the vacancy in newspapers, the internet, etc. This advertisement gives information about the company, the job and the required qualities of the candidate. It invites applications from suitable candidates. This source is the most popular source of recruitment. This is because it gives a very wide choice. However, it is very costly and time consuming. 3. Campus Recruitment : The organisation conducts interviews in the campuses of Management institutes and Engineering Colleges. Final year students, who're soon to get graduate, are interviewed. Suitable candidates are selected by the organisation based on their academic record, communication skills, intelligence, etc. This source is used for recruiting qualified, trained but inexperienced candidates. 4. Recommendations : The organisation may also recruit candidates based on the recommendations received from existing managers or from sister companies. 5. Deputation Personnel : The organisation may also recruit candidates who are sent on deputation by the Government or Financial institutions or by holding or subsidiary companies. Advantages of External Sources The benefits / merits / advantages of using external sources of recruitment:1. It encourages young blood with new ideas to enter the organisation. 2. It offers wide scope for selection. This is because a large number of suitable candidates will come for the selection process. 3. There are less chances of bias or partiality. 4. Here there is no need to maintain confidential records. Limitations of External Sources The demerits / limitations of using external sources of recruitment:1. It is very costly. This is because advertisements, test, medical examination etc., has to be conducted. 2. It is very time consuming. This is because the selection process is very lengthy. 3. It may not develop loyalty among the existing managers. 4. The existing managers may leave the organisation if outsiders are given higher post.

Advertising
Consider benefits to the organisation of a multi-skilled workforce, by advertising all positions internally and externally. Determine strategies for reaching the widest pool of applicants possible (eg, use of ethnic media, informal networks, community groups, and organisations, industry groups, trade journals). Ensure the information in the ad matches the selection criteria. Do not use stereotyped or discriminatory language or discriminatory requirements (Salesman, Age 30-45 years). If used, ensure recruitment consultants are fully briefed on your requirements and have a good understanding of equal opportunity and anti-discrimination principles. Include the name of a contact person in the advertisement and ensure they have information (presented in a clear and consistent way) prepared about the position.

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