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The process of finding and hiring the best-qualified candidate (from within or outside of an organization) for a job opening, in a timely and cost effective manner. The recruitment process includes analyzing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the organization.
When new positions open within the company, managers have the opportunity to bring in new candidates who offer a different point of view from the existing staff. When you recruit internally, you are working with the same set of ideas that you had when the process started. Internal recruiting has a way of limiting the flow of new ideas into a company that can help to spur growth and development.
Internal recruitment can offer incentive for employees to perform well, but it also can create an atmosphere of competition that can be counterproductive. Employees may feel pressured to compete with each other to be considered for a position during an internal recruitment process, and this can create conflict. While the potential is there to improve morale with internal recruitment, it could turn the other way and help to lower morale because employees become focused on competing for jobs rather than trying to become proficient at their current positions.
Sources of Recruitment of Employees: Internal and External Sources (with its Advantages and Disadvantages)!
The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of recruitment process.
The candidates may be available inside or outside the organisation. Basically, there are two sources of recruitment i.e., internal and external sources.
Best employees can be found within the organisation… When a vacancy arises in the organisation, it may be given to an employee who is already on the pay-roll. Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organisation to work hard. The employees can be informed of such a vacancy by internal advertisement.
The Internal Sources Are Given Below:
1. Transfers:
Transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.
2. Promotions:
Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities and more pay. The higher positions falling vacant may be filled up from within the organisation. A promotion does not increase the number of persons in the organisation.
A person going to get a higher position will vacate his present position. Promotion will motivate employees to improve their performance so that they can also get promotion.
3. Present Employees:
The present employees of a concern are informed about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieved of looking out prospective candidates.
The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. The existing employees take full responsibility of those recommended by them and also ensure of their proper behaviour and performance.
The Following are The Advantages of Internal Sources:
1. Improves morale:
When an employee from inside the organisation is given the higher post, it helps in increasing the morale of all employees. Generally every employee expects promotion to a higher post carrying more status and pay (if he fulfills the other requirements).
2. No Error in Selection:
When an employee is selected from inside, there is a least possibility of errors in selection since every company maintains complete record of its employees and can judge them in a better manner.
3. Promotes Loyalty:
It promotes loyalty among the employees as they feel secured on account of chances of advancement.
4. No Hasty Decision:
The chances of hasty decisions are completely eliminated as the existing employees are well tried and can be relied upon.
5. Economy in Training Costs:
The existing employees are fully aware of the operating procedures and policies of the organisation. The existing employees require little training and it brings economy in training costs.
6. Self-Development:
It encourages self-development among the employees as they can look forward to occupy higher posts.
(i) It discourages capable persons from outside to join the concern.
(ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organisation.
(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.
(iv) If only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.
Inspite of the disadvantages, it is frequently used as a source of recruitment for lower positions. It may lead to nepotism and favouritism. The employees may be employed on the basis of their recommendation and not suitability.
All organisations have to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needed when expansions are undertaken.
The external sources are discussed below:
1. Advertisement:
It is a method of recruitment frequently used for skilled workers, clerical and higher staff. Advertisement can be given in newspapers and professional journals. These advertisements attract applicants in large number of highly variable quality.
Preparing good advertisement is a specialised task. If a company wants to conceal its name, a ‘blind advertisement’ may be given asking the applicants to apply to Post Bag or Box Number or to some advertising agency.
2. Employment Exchanges:
Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts etc., it is often used as a source of recruitment. In certain cases it has been made obligatory for the business concerns to notify their vacancies to the employment exchange. In the past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the employment exchanges.
3. Schools, Colleges and Universities:
Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spotted during the course of their studies. Junior level executives or managerial trainees may be recruited in this way.
4. Recommendation of Existing Employees:
The present employees know both the company and the candidate being recommended. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them.
In certain cases rewards may also be given if candidates recommended by them are actually selected by the company. If recommendation leads to favouritism, it will impair the morale of employees.
5. Factory Gates:
Certain workers present themselves at the factory gate every day for employment. This method of recruitment is very popular in India for unskilled or semi-skilled labour. The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for the vacancy.
6. Casual Callers:
Those personnel who casually come to the company for employment may also be considered for the vacant post. It is most economical method of recruitment. In the advanced countries, this method of recruitment is very popular.
7. Central Application File:
A file of past applicants who were not selected earlier may be maintained. In order to keep the file alive, applications in the files must be checked at periodical intervals.
8. Labour Unions:
In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is instability of employment) all recruits usually come from unions. It is advantageous from the management point of view because it saves expenses of recruitment. However, in other industries, unions may be asked to recommend candidates either as a goodwill gesture or as a courtesy towards the union.
9. Labour Contractors:
This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in brick klin industry. The contractors keep themselves in touch with the labour and bring the workers at the places where they are required. They get commission for the number of persons supplied by them.
10. Former Employees:
In case employees have been laid off or have left the factory at their own, they may be taken back if they are interested in joining the concern (provided their record is good).
11. Other Sources:
Apart from these major sources of external recruitment, there are certain other sources which are exploited by companies from time to time. These include special lectures delivered by recruiter in different institutions, though apparently these lectures do not pertain to recruitment directly.
Then there are video films which are sent to various concerns and institutions so as to show the history and development of the company. These films present the story of company to various audiences, thus creating interest in them.
Various firms organise trade shows which attract many prospective employees. Many a time advertisements may be made for a special class of work force (say married ladies) who worked prior to their marriage.
These ladies can also prove to be very good source of work force. Similarly there is the labour market consisting of physically handicapped. Visits to other companies also help in finding new sources of recruitment.
1. Availability of Suitable Persons:
Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organisation. They will also be suitable as per the requirements of skill, training and education.
2. Brings New Ideas:
The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organisation in a competitive position.
3. Economical:
This method of recruitment can prove to be economical because new employees are already trained and experienced and do not require much training for the jobs.
1. Demoralisation:
When new persons from outside join the organisation then present employees feel demoralised because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues in other concerns.
2. Lack of Co-Operation:
The old staff may not co-operate with the new employees because they feel that their right has been snatched away by them. This problem will be acute especially when persons for higher positions are recruited from outside.
3. Expensive:
The process of recruiting from outside is very expensive. It starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to be repeated.
4. Problem of Maladjustment:
There may be a possibility that the new entrants have not been able to adjust in the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. These things have adverse effect on the working of the organisation.
External Sources of Recruitment are Suitable for The Following Reasons:
(i) The required qualities such as will, skill, talent, knowledge etc., are available from external sources.
(ii) It can help in bringing new ideas, better techniques and improved methods to the organisation.
(iii) The selection of candidates will be without preconceived notions or reservations.
(iv) The cost of employees will be minimum because candidates selected in this method will be placed in the minimum pay scale.
(v) The entry of new persons with varied experience and talent will help in human resource mix.
(vi) The existing employees will also broaden their personality.
(vii) The entry of qualitative persons from outside will be in the long-run interest of the organisation.
(The internal sources as a basis for attracting the existing workers organization, where they are attracted horizontal movement of transport and other functions at the level of their jobs, whether they are on the same their management and their departments or in other departments and sections of the organization, or the vertical movement of upgrading the functions of the higher-level of current jobs).May be limited to individuals who will guide efforts to attract the progress of job vacancies by reviewing employees in the organization or statements of seniority or other sources records, and so says Dr. Ahmad Maher: (intended internal sources in the human resources available within the organization, which can be used for these sources in the case of supervisory positions, or jobs that require expertise may not be available outside the organization),The most important of these sources include:
a*. Upgrade:Director resort to this regard in the case of wanting to occupy some supervisory positions or leadership.B*. Internal announcement:Many organizations use a panel of internal ads to advertise the vacant position in the organization.T*. By colleagues, acquaintances and friends:When you are at the company's desire to occupy one of the rare disciplinary functions, and is available in abundance, especially in technical or artistic disciplines minute.Internal sources
Advantages- To encourage qualified individuals with ambition, where the organization provides employment to have the expertise to operate and do not need to train.- Predict the possibility of success in his new work, due to the availability of information on the performance.- A good way to develop relations with workers.- Raise the morale of the workers.- Lower cost compared to external polarization.- Development of organizational loyalty; so aware of the existing working groups is management's estimate of their abilities and competence and their preference for jobs vacant top of the organization.- More a sense of security, leading to stimulate the working groups is to increase and improve their productivity to qualify themselves for upgrades.- Knowledge and expertise of existing workers conditions and status and policies of the organization
Flaws - lack of opportunity to push blood in the very sense of the organization to attract members from outside the organization backgrounds and experiences and perspectives broader point of view, especially if the organization is not available individuals with the characteristics and capabilities of the desired type.- It may lead to a negative impact on the morale of those who were not chosen.- The use of internal sources may be generated by the conflict and disputes harmful to competition, and then the impact on performance
Best employees can be found within the organisation… When a vacancy arises in the organisation, it may be given to an employee who is already on the pay-roll. Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organisation to work hard. The employees can be informed of such a vacancy by internal advertisement.
1. Transfers:
Transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.
2. Promotions:
Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities and more pay. The higher positions falling vacant may be filled up from within the organisation. A promotion does not increase the number of persons in the organisation.
A person going to get a higher position will vacate his present position. Promotion will motivate employees to improve their performance so that they can also get promotion.
3. Present Employees:
The present employees of a concern are informed about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieved of looking out prospective candidates.
The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. The existing employees take full responsibility of those recommended by them and also ensure of their proper behaviour and performance.
1. Improves morale:
When an employee from inside the organisation is given the higher post, it helps in increasing the morale of all employees. Generally every employee expects promotion to a higher post carrying more status and pay (if he fulfills the other requirements).
2. No Error in Selection:
When an employee is selected from inside, there is a least possibility of errors in selection since every company maintains complete record of its employees and can judge them in a better manner.
3. Promotes Loyalty:
It promotes loyalty among the employees as they feel secured on account of chances of advancement.
4. No Hasty Decision:
The chances of hasty decisions are completely eliminated as the existing employees are well tried and can be relied upon.
5. Economy in Training Costs:
The existing employees are fully aware of the operating procedures and policies of the organisation. The existing employees require little training and it brings economy in training costs.
6. Self-Development:
It encourages self-development among the employees as they can look forward to occupy higher posts.
(i) It discourages capable persons from outside to join the concern.
(ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organisation.
(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.
(iv) If only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.
Inspite of the disadvantages, it is frequently used as a source of recruitment for lower positions. It may lead to nepotism and favouritism. The employees may be employed on the basis of their recommendation and not suitability.
Recruitment is the process of finding and hiring the best-qualified candidate (from within or outside of an organization) for a job opening in a timely and cost-effective manner. The recruitment process includes analyzing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee into the organization.
Merits of Internal Sources
Demerits of Internal Sources
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