Best Sources of Recruitment [Internal & External Sources]

Candidates are the lifeline of a company. Therefore, it is important to understand and use the right strategies when sourcing candidates, either internally or externally. In this blog, we will explore the different sources of recruitment, their pros and cons, and the best recruitment sources to enable you to make informed decisions when sourcing candidates.

Sources of Recruitment: Meaning

Sources of recruitment are the different methods used to communicate with job seekers to find suitable employees. To put it simply, they are the different means by which information about available positions is shared with potential candidates. Consider checking this guide on sourcing international candidates. It is a helpful resource for hiring candidates from around the world.

Different Sources of Recruitment in HRM

There are two best way to source candidate: internal and external. Let’s learn about each of them in the following sections.

1. Internal Sources of Recruitment

Internal source of recruitment is the process of hiring individuals already employed within the company. This means that these employees are currently on the payroll of the organization. When a job opening becomes available, it can be announced to current employees through internal communication methods.

The following are the various types of internal sources of recruitment in HRM.

1. Employee Referral

The employee referral scheme involves the screening of current staff members to identify potential candidates for open positions. As an incentive, existing employees may be offered bonuses or other types of rewards for successfully referring qualified individuals.

2. Employee Promotion

The organization may offer skilled employees a chance to advance in their careers by offering them a higher position within the same department or in another one, with additional tasks, obligations, and a salary increase. This opportunity for promotion not only leads to better job status and perks but also serves as motivation for employees to work harder and be more efficient.

3. Database Recruiting

Organizations may opt-in for database recruiting. This is an effective way to manage the hiring process. It serves as a central hub where job listings, candidate resumes, contact details, and communication records are stored. A company may decide to go through the existing resumes of employees and extend a full-time job opportunity to an existing freelance worker, a retiree, or candidates who applied for a position in the past. 

Also Read: Best Applicant Tracking Systems

4. Transfer of Existing Employee

An employee transfer involves moving an employee from one job to another within the same company, without changing their position or duties. The main objective of a transfer is to provide the employee with a comprehensive understanding of the organization. It may sometimes require the employee to relocate to a branch office in another city or even country.

2. External Sources of Recruitment

External recruitment sources aim to hire individuals who have not previously been employed within the organization. This introduction of new talent into the workforce promotes business growth and development. 

Also, the use of external recruitment sources offers organizations a diverse pool of candidates, which brings fresh perspectives into the organization. You can also consider taking a course in human resources to help you master the skills of human management.

The following are the various types of external sources of recruitment in HRM.

1. Campus Recruitment

Campus selections are carried out by companies at different educational institutions to hire final-year students. These opportunities may include internships during the student’s last year of studies and potential job offers upon graduation.

2. Recruiting Agencies

Employment agencies are valuable resources for job seekers and employers alike, both in the private sector and within government organizations. They offer a variety of services, including face-to-face and online assistance with finding employment opportunities that align with an individual’s skills and experience. 

3. Media Promotion Ads

Another way to attract candidates for open job positions is by advertising through various mediums, such as newspapers, local magazines, journals, and outdoor marketing platforms, like billboards. It can be especially effective if you are hiring multiple individuals at once. 

4. Companies Page/ Website

Having a dedicated webpage solely focused on available job positions is crucial for any company website. It should be regularly updated to display current openings, along with clear instructions on how to apply for each listed position. 

5. Employee Recommendation

Many companies encourage staff members to refer potential candidates for job openings within the organization. They allow current employees to refer potential candidates, such as family members, friends, or acquaintances, by informing them about available job openings and encouraging them to apply.

Also Read: Best HR Software in India

Pros of Internal Sources of Recruitment

The following are the benefits of using internal sources:

1. Effective Time Management

Internal source of recruiting allows HR staff to avoid the lengthy process of reviewing numerous job applications, selecting potential candidates, and scheduling interviews via email. Additionally, certain pre-employment requirements, such as background checks, may not be necessary for existing employees.

2. Enhances Self-Development

Enabling existing staff members to switch roles or grow within the company demonstrates a company’s appreciation for their dedication, hard work, and abilities. Internal sourcing encourages employees to actively engage in self-improvement initiatives and acquire additional competencies to enhance their chances of being promoted.

3. Flexible Transition

When companies choose to promote from within, staff members are already well-versed with the company’s system, values, and operations. Therefore, this familiarity minimizes the need for onboarding to adjust to their new role and work environment.

4. Saves Resources

Organizations can save money by hiring internally instead of spending on advertising, conducting background checks, and arranging interviews. This makes it a more cost-effective option.

Cons of Internal Sources of Recruitment

The following are the disadvantages of using internal sources:

1. Limits New Talents

The use of internal sources limits the potential for acquiring new and innovative talent. This overreliance on existing employees can lead to inbreeding within the organization, hindering opportunities for fresh perspectives from external candidates.

2. Encourages Nepotism

Employing someone from within the company will enable employers to promote an individual who has not yet qualified for a certain position. Managers may choose to do this as a way of showing appreciation for dedicated staff members or to provide opportunities for employees’ future professional growth.

3. Propels Conflict

Conflict may arise if only one employee is chosen for a promotion and the others are not taken into account. For instance, when two colleagues who are currently working together apply for the same position, the individual who is not selected may treat the employee who was promoted differently. Also, it might be difficult for an appointed supervisor to gain respect from previous colleagues.

Pros of External Sources of Recruitment

The following are the benefits of using external sources:

1. Introduces Fresh Perspectives

Companies can enhance their innovation by recruiting new talent from external sources. The inclusion of diverse voices can drive business operations and propel growth within the industry.

2. Expands Talent Pool

Organizations can expand their talent pool by using external recruitment sources. This allows them to consider a larger number of skilled and experienced candidates for the vacant job position.

Also Read: HR Best Practices

Cons of External Sources of Recruitment

The following are the disadvantages of using external sources:

1. Extensive Procedures

Recruiting from external sources involves a long process, which can be time-consuming. This is due to the different steps involved, such as identifying vacancies, advertising them, and waiting for the applications to be reviewed by the organization.

2. Is Expensive

Recruiting through external sources is usually costly. Advertising and evaluating applications for selection requires significant financial investment.

Conclusion

Recruiting the right talent is an important aspect for organizations and requires careful consideration of factors, such as hiring needs, industry specifications, and budget. To effectively attract top candidates, the most successful recruitment strategies involve using multiple sources of recruitment in HRM. It’s important to note that there is no universal approach to recruiting; instead, it’s an ever-changing process that plays a significant role in the growth and achievement of any company. 

Also, check out the best recruitment strategies to hire the right candidates. If you’re an employer, let us know how your last recruitment process went and what you learned from it.