Types of Recruitment

What are the different sources of recruitment?

The different sources of Recruitment are classified into two categories.

1. Internal Sources
2. External Sources
 What is Internal Sources?

This involves recruiting candidates within an organization to fill the vacancy. Unlike
external sources, companies fill the positions through references of internal
employees or current employees promotions to higher positions.
Methods of Internal Recruitment
1. Internal Advertisements ( emails, newsletters, forms )
2. Word of Mouth
3. Promotions
4. Internal Employee Referrals
5. Retired Employees for temporary or contract positions.
6. Present temporary/contract employees to permanent positions
7. Former employees for part time/freelancer/work at home.
8. Factory gate recruitment
 Advantages of Internal Recruitment

1. No cost and less time consuming

2. No need of training
3. Builds strong relationship with employees.
4. Motivates others of hard work to get high positions.
5. Easy to pick best talents within an organization very quickly
6. Long stay with the company when promoted to high position.
 Disadvantages of Internal Recruitment

1. The positions of the persons who is promoted will be vacant.

2. There may be partiality in promoting employees.
3. No new opportunities for external candidates.
4. Dissatisfied employees may quit if his co-worker is promoted to high positions.
 What is External Sources?
This involves recruiting a candidate through references, networks, job portals or they
may approach recruitment agencies. In order to compete with other companies &
increase their standard, employers hunt for best talents working for other top
companies.
Methods of External Recruitment

1. Job Portals
2. External Employee Referrals
3. Recruitment/Headhunting agencies
4. Job ads on Newspapers/Websites
5. Campus Recruitment
6. Walk In
Advantages of External Recruitment

1. Create new opportunities for external employees.

2. Best candidates can be placed for the roles
3. Cost of employees can be minimized
4. Increase in the selection ratio.
5. There are less chances of partiality
6. Uniqueness in employees worked for different companies can take the current
company to extra mile
7. Able to recruit the skills it needs.
 Disadvantages of External Recruitment

1. Cost to hire is high.

2. External process is more time consuming as compared to internal process.
3. Sourcing quality candidates becomes difficult for the companies.
4. Internal recruiters lack headhunting skills ( Less references & networks ). They
may have to approach Recruitment agencies to hire the people.
Internal Recruitment vs. External Recruitment
With lot of competitors and rapid change in technology, companies look for candidates working in similar domain
of different skills and uniqueness to build their business. Employees within a company lack modern technology
process that cannot compete with other companies, can bring the company to low level. Unlike Internal
employees, external passive candidates can bring lot of changes to the companies with innovative ideas and
creative skills to improve business standard. As technology moves to advanced level, customers begin to use
latest technologies. In order to compete with other companies, external employees with latest skills and thorough
knowledge on business economy and competitive place are responsible for better business growth.

When internal employees fail to do so, employers go for searching external candidates with rich source of latest
skills to fill the positions. These external candidates are not so easily available on job boards. They are happy
working in current organization and do not look for a career change. Contacting with these successful candidates
requires a great sensitivity to convince them to take up the new opportunities. These hidden talents can be found
only through references and wide network. When internal recruiters of the organization fail to recruit such
candidates, they go for headhunting agencies.

Though the external recruitment is costly, it is far better than internal recruitment. Various recruitment and
headhunting agencies are modernized to hunt candidates through various techniques. They research the market
place; know the competitors and source best talents for the positions.

Thus, to hire quality candidates external recruitment becomes necessary for companies.