Tuesday, 1 May 2012


Q2. Distinguish between internal and external sources of recruitment.

Many organizations use a combination of both internal and external sourcing alternatives to deliver business support services. Sourcing the candidate from within the organization is known as internal source of recruitment and sourcing candidates from other sources is known as external source of recruitment.

·         Internal Sourcing
·         External Sourcing
Proficient planning and execution of these “multi-sourcing” strategies requires efficient control and change management. The sourcing strategy must accomplish a proper balance between business drivers such as cost, quality of services, transformation, business agility and control. Organizations should focus on aligning these solutions with short-term and long-term business goal, as well as the strategic and planned initiatives across their business units. The success of sourcing alternatives depends on the strategic alignment of sourcing internally.

1. Internal Sourcing
When you hire staff or contract staff who is working or was working with your organization earlier, then it is called as internal sourcing. An internal source is considered for:

Availability of competent resources within the organization are given first preference and considered for filling the vacancies at higher levels by way of promotions.

In case of excess hiring or businesses slowing due to various reasons in one branch of an organization and shortage of employees in another branch, organizations consider transferring surplus employees to meet the shortage of staff in the other branch rather than sourcing externally.

Temporary Staff
Many organizations appoint temporary staff for short projects. At the end of such projects organization often try to retain efficient resources by deploying them to available positions in other roles.

Retired Employees
Sometimes organizations prefer to re-employ their retired employees due their immense experience and knowledge and lack of suitably skilled and efficient candidate matching their requirement for the job opening.

Advantages of Internal Sourcing
The advantages of internal sourcing are:
·         Reduces cost of recruitment.
·         Reduces cost of training, induction and orientation.
·         The time to transfer to the new role may be shorter.
·         The past performance track record of the employee is known.
·         Motivates employees and provides experienced competent people for the job role.
·         Stability of employment can be ensured for the candidate.

Disadvantages of Internal Sourcing
·         Limits the options for selection.
·         Lack of new ideas and approaches from outside the business.
·         Creates another vacancy by moving the candidate from current job.
·         May discourage the candidates not appointed.

2. External Sourcing
When you hire staff or contract staff who has never worked with your organization earlier, then it is called as external recruitment. Examples are:

Advertisements in Media
Advertisements of the job openings in newspaper and journals magazines are generally used as a source of external recruitment.

Campus Selections in Institutions
Various colleges and institutions are a good source of recruiting well qualified executives, engineers, medical staff etc.

Employee Referrals
Organizations encourage internal employees by providing benefits for referring friends and relatives for some position in their organization.

They identify candidates matching the job profile and charge a fee for providing candidates till you find the right candidate who accepts the offer.

Data Banks
Organizations collect CVs of candidates from different sources like employment exchange, training institutes etc. and screen and shortlist the candidates.
When the business grows and if the business is manpower intensive, then additional resources are required. Therefore external recruitment is done. This is the only way to scale up the business. Also it brings in a freshness of thought and perspective. Capable people from the world’s best organizations bring best practices with them. They bring the culture of performance and meritocracy. External recruitment has many advantages. If the job role requires tremendous experience (e.g. 15 years), it is better to hire someone externally than to wait for people in your own organization with 4 years experience to gain 11 more years of experience.

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