Why organizations prefer internal sources for recruitment


Internal sources include: (a) present permanent employees,(b) present temporary/casual employees, (c) retrenched or retired employees, (d) dependents of deceased, disabled, retired and present employees.

(a) Present Permanent Employees:

Organizations consider the candidates from this source for higher level jobs due to:

1. Availability of most suitable candidates for jobs relatively or equally to the external source,

2. To meet the trade union demands,

3. To the policy of the organization to motivate the present employees.

(b) Present Temporary or Casual Employees:

Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade and pressure or in order to motivate them on the present job.

(c) Retrenched or Retired Employees:

Generally a particular organization retrenches the employee due to lay-off. The organization takes the candidates for employment from the retrenched from the retrenched employees due to obligation, trade union pressure and the like. Sometimes the organizations prefer to re-employ their retired employees as a token of their loyalty to the organization or to postpone some inter-personal conflicts for promotion etc.

(d) Dependents of Deceased, Disabled, Retired and Present Employees:

Some organizations with a view to developing the commitment and loyalty of not only the employee but also his family members and to build up image provide employment to the dependents of deceased, disabled and present employees. Such organizations find this source as an effective source of recruitment.

Why do organizations prefer Internal Sources?

Organizations prefer this source to external source to some extent for the following reasons:

(a) Internal recruitment can be used as a technique of motivation.

(b) Morale of the employees can be improved.

(c) Suitability of the internal candidates can be judged better than the external candidates as “known devils are better than unknown angels.�

(d) Loyalty, commitment, a sense of belongingness, and security of the present employees can be enhanced.

(e) Employees’ psychological needs can be met by providing an opportunity for advancement.

(f) Employees’ economic needs for promotion, higher income can be satisfied.

(g) Cost of selection can be minimized.

(h) Cost of training, induction, orientation, period of adaptability to the organization can be reduced.

(i) Trade unions can be satisfied.

(j) Social responsibility towards employees may be discharged.

(k) Stability of employment can be ensured.

But organizations do not excessively rely on internal source as too much consumption of even sugar tastes bitter. The excessive dependence on this source results in in-breeding, discourages flow of new blood into the organization, organization would become dull and back number without innovations, new ideas, excellence and expertise. Hence, organizations depend on internal source to the extent of motivating and then depend on external sources.

Where are suitable candidates available in required number? How can they be informed about the availability of jobs and about the jobs and organization? Now we deal with first question as the answer to it deals with the sources of recruitment and answer to the second question deals with the techniques of stimulating the prospective candidates (or techniques of recruitment).

Generally, the learners of human resources management may feel that sources and techniques of recruitment are one and the same. But they are different. Sources are those where prospective employees are available like employment exchanges while techniques are those which stimulate the prospective employees to apply for jobs like nomination by employees, advertising, promotion etc. Management has to find out and develop sources of recruitment as early as possible because of high rate of time-lapse.

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