9 Internal Sources of Recruitment: Definition, Advantages and Drawbacks: The first and the foremost step in staffing is the recruitment and identifies the various sources of recruiting as well as choose the most reliable and suitable sources to search the talented candidates for the organization. It stimulates the deserving candidates to apply for the job.

Also See: 15 External Sources of Recruitment: Definition, Advantages and Drawbacks

9 Internal Sources of Recruitment: Definition, Advantages and Drawbacks

The vacant positions in an organization are filled with the help of internal methods of recruitment rather than choose the candidates from outside.

Definition of Internal Sources of Recruitment

The Internal Sources of recruitment refers to hiring the candidates from the existing employees who are working in the organization. In simple words, the seeking applicants for these vacant positions are selected from the employees within the organization. These candidates are already on the payroll of the organization and it also involves the former employees who have returned to work at the workplace.

Also See: 17 Difference between Recruitment and Selection Tabular

Advantages of Internal Sources of Recruitment

The advantages of the internal sources of recruitment which involves the following:

  1. Familiarity with the employees

The organization is well-versed with the long-time performance of all the employees and they know better how knowledgeable a person is. By knowing about the strength as well as weaknesses of the employees, the management can take a wise decision to promote and transfer any employee rather than go for strange and unknown outsiders.

  1. Better usage of talent

The entire process of internal sources of recruitment also offers an amazing opportunity to retain the talent and use the same within the organization. It also provides a chance for the employees to develop and grow again more and more.

  1. Economical recruitment

The type of recruitment is economically good for the company as it does not require any sort of time and effort to locate as well as attract the potential candidates towards the vacant position. Internal recruitment is quite inexpensive.

  1. Improves Morale

This method of recruitment sets an example in front of all the employees that better performance and proper concentration towards the assigned jobs can give anyone an opportunity to move forward on the top-level positions.

  1. A Motivator

The promotion done through the internal sources of recruitment acts as an avenue of motivation for existing employees to develop the career and income as well. The organization is a destination where you can build up their lifetime career and serves as an attracting as well as retaining talented employees within the organization.

Also See: Recruitment and Selection Process: Complete Guide

Disadvantages of Internal sources of recruitment

The key disadvantages attached to the internal sources are mentioned as follows:

  1. Limited Choice

Limited talented employees are available in the organization and the choice is restricted. Therefore, it avoids the talent available in the outside labour market. It acts as a means for “inbreeding” which is never healthy for the organization.

  1. Eliminate competition

This system is not encouraging the competition as the existing employees prevent the competition by not giving a chance to any competent candidates from inside the organization. Without any additional performance, it has a tendency to develop the employees through promotion and transfer.

  1. Stagnation of skills

The employees get feeling that they will get promoted to the high level of positions surely and all their skills may become obsolete in the long run. Hence, productivity, as well as the efficiency of the organization, decreases.

  1. Push up conflicts

As the existing candidates get promoted to the high-level positions, so it creates an environment of conflicts and controversies among the surface of the internal candidates. Some deserve to be promoted to top positions but others may not. It establishes differences among the employees.

Also See: 13 Importance of Recruitment and Why It Is Needed?

Methods of Internal Sources of Recruitment

Various types of methods are used in the internal sources of recruitment which are very beneficial for the organization. It is done through various types such as promotion, re-hiring and transferring employees within the premises of the company. Let us have a look.

  1. Promotion

It is a process of upward movement of the existing employees from the current position to some high level of positions. It follows a set of the hierarchical level to the topmost job roles with an increase in the income along with the associated responsibilities. Promotion acts as recognition as well as reward in return to the hard work, efficiency and talent. This will encourage the morale of the employee and also satisfy them towards their career progression, motivate to perform better at high positions. By promoting to the high positions, they get to know and learn new skill, knowledge and education.

The merit of all the employees decides the promotion which includes employee’s skill, knowledge, efficiency, ability, achievements and aptitude as measured from the educational background, training, past employment and performance of the employee that is the entire tenure of the service in the similar job as well as in the same company. The vacant positions can be filled by promoting the existing employees and it also encourages improving the performance.

The decisions related to promotions are based on seniority, experience, education gained, work performances and productivity. A crystal is clear, formal as and systematic policy for promotion is established by the organizations. There is no partiality and biases existed in the promotion policy so that the deserving and talented employee will be promoted to the high level of positions.

Internal Sources of Recruitment
Internal Sources of Recruitment

Promotion is done on two bases, the first one is seniority and the other one is merit. In the case of seniority, the entire tenure of service of the employee is taken into consideration. It is expected by the employees as the long term services with a particular organization ensure the pay hike with promotion. On the contrary, Merit-based promotion is done on the basis of employee’s skill, talent, knowledge, ability, performance and productivity. The quality of services rendered by the employee during the job tenure is considered by the management.

It is always a controversial topic on which basis the employee should get the promotion because both types are important in different ways. Hence, a blend of seniority and merit is a perfect choice.

Also See: Top 15 Challenges of Human Resource Management

  1. Transfer

As the word signifies, the word “Transfer” means shifting of an employee from the same level of job to another similar job. It does not related to any changes in salary, rank, responsibilities and prestige as well. Simply, it is a kind of lateral shifting from one position to other but no change in roles and responsibilities. No extra skill is required by this type of internal recruitment. Moreover, it is a good avenue to maintain the cordial relations between the workers and also avoids the monotonous working routine. Keep the employee well-versed with other activities and tasks of the business.

  1. Demotion

It indicates the demotion of the employee from the high-level positions to the lower-level positions with a decrement in pay and status. However, it is a kind of punishment due to the low performance of an employee and it is given in some exceptional cases only.

  1. Former Employees

These are those employees who are working on a part-time basis and now, would like to work on a full-time basis or the ex-employees of a company who already left the company for some genuine reasons but now willing to join again. These employees are a good internal source of recruitment as the organization knows about the performance of the employee and there is no chance of making bad decisions.

Generally, these employees are laid off and work seasonally during summer vacations or tax seasons. One of the simple and cost-effective ways to maintain a pool of talented candidates is creating alumni at work. Further, referrals can get from the former employees as they are aware of the company, culture and its work ethics.

Also See: 9 Types of Human Resources Never Discussed Before

  1. Job Posting

It is a straightforward way to hire employees from the inside of the organization. Under this method of an internal source of recruitment, the job openings are publicized on bulletin boards, electronic media and similar outlets.

To exemplify, a version of such recruitment was introduced by Hindustan Lever in the year 2002 and around forty positions are filled via this process. Moreover, HLL allows their employees to post their job shift from technical positions to non-technical like marketing, market research, etc. and vice-versa through this open job posting system. At the same token, the employees of the AV Birla group allowed to apply for the job within the group and other companies of the Birla group, whether in India or abroad.

The highlighted benefit of this method is to provide an opportunity to highly experienced and talented employees to look for progress in their career without searching for any opportunities outside the company.

  1. Retention

It is a type of internal recruitment under which a retired employee seems beneficial and an asset to the growth of the organization. So, the management may retain such employees after superannuation to meet the requirements of the manpower.

  1. Deceased

It is another type of internal recruitment under which favour is done for the deceased employee of the organization. Under this type of recruitment, the legal heir or the dependent of the deceased employee gets an opportunity to work on the place of the deceased.

  1. Acquisition and Mergers

This type of recruitment is done internally on the basis of acquisitions as well as mergers. When a company acquires another firm or merges with other company, then the requirement of the workforce is met through the employees available in these companies.

Also See: Scope of Human Resource Management: Complete Reference

  1. Employee Referrals

Existing employees of a company refer to kith and kin for the vacant job post. These employees are well-versed with the working environment, the company’s culture and requirements of the job. Moreover, they refer family and friends to the management if they find that they are suitable to do the job. The employee Referral program is always encouraged by the organization as it saves time and effort instead of hiring through the external sources of recruitment. However, if the referred candidate will get selected for the job position, then the existing employee will also get the incentives in the form of “finder’s fees”.

Final Words

All in all, the internal sources of recruitment are widely associated with the motivation and morale of the existing employees as suitable and talented employees get a chance for promotion within the current organization. It may lead to achieving a high level of teamwork as well as synchronization among the employees. However, it is also associated with providing a golden opportunity to their close ones by giving referrals to the management.

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