Types of Recruitment

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.

Internal recruitment may lead to increase in employee’s 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.
 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.