Difference between Internal Source and External Source of Recruitment

The difference between Internal sources and External sources of recruitment tells about the different ways to search for the appropriate candidates for the vacant job. Internal sources include a promotion, transfer, etc. whereas External sources include campus placement, employment exchange, etc.

What is Internal Source?

When vacancies are filled with existing employees of the organization then it is called an internal source of recruitment. For Example Promotion of assistant manager to Departmental Head. A person is only got a promotion if he does his work efficiently and according to the given task.

So in this example, the internal source is used to fill the vacant job of the departmental head by promoting the assistant manager.

Benefits:

  • It encourages the existing employees.
  • Very little time is required for the training because employees are already knowing about the organization’s policies and procedures to do the work.
  • It includes the low cost for the process of recruitment.

What is External Source?

When the candidates are invited from outside the organization it is called an external source of recruitment. The external source is best when there is a large number of candidates are required in the organization. Direct recruitment, advertisement Employment Exchange, Recommendations from present employees,(It includes the friend and relatives) Placement Agencies, Campus placements, Labour Contactors, Advertisement on TV, Web Publishing(the common websites like: Naukari.com, Monster.com), etc are the methods used as external sources.

Benefits:

  • This source is very useful when there is a requirement for a large number of human resources in the organization.
  • The new organization using external sources for filling the vacancies.
  • Management gets talented candidates as per the requirement.
  •  The organization gets the wider choice to select the appropriate candidates.

The Chart of difference between Internal Source and External source of Recruitment

Points of differences

Internal SourceExternal Source
MeaningWhen vacancies are filled with existing employees of the organization then it is called an internal source of recruitment.When the candidates are invited from outside the organization it is called an external source of recruitment.
SourcesIt includes Promotion, Transfer, Employee referrals.It includes direct recruitment, advertisement Employment Exchange, Recommendations from present employees,(It includes the friend and relatives).
Basis On seniority, cum merit basis employees are recruited.Marit and qualification are strictly followed.
CostInternal source is the inexpensive as compared to external source.It is very expensive because time and resources, and expenses are included.
Choice It has limited choice.It has wider choice to select the candidates.
ExamplePromotion of assistant manager to Departmental Head. A person is only got a promotion if he does his work efficiently and according to the given task.Recommendations from present employees,(It includes the friend and relatives) Placement Agencies, Campus placements, Labour Contactors, Advertisement on TV, Web Publishing(the common websites like: Naukari.com, Monster.com), etc are the methods used as external sources.
StaffIn the organisation existing staff feel motivated.Existing staff feel dissatisfied.
Time Less time consuming.It is time consuming beacause candidates are invited from outside the organization with a long procedure.

Conclusion:

Thus, In the Internal Source include a promotion, transfer, etc. whereas External sources include campus placement, employment exchange, etc. In other words, the external source consists of a large number of candidates, and the organization has a wider scope to select the qualified manpower but it does not mean that the internal source is not good, it is also best because internal recruitment existing employees feel motivated.

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