Internal Sources of Recruitment

1. Promotions:
The promotion policy is followed as a motivational technique for the employees who work hard and show good performance. Promotion results in enhancements in pay, position, responsibility and authority. The important requirement for implementation of the promotion policy is that the terms, condiĀ­tions, rules and regulations should be well-defined.
2. Retirements:
The retired employees may be given the extension in their service in case of nonĀ­-availability of suitable candidates for the post.
3. Former employees:
Former employees who had performed well during their tenure may be called back, and higher wages and incentives can be paid to them.
4. Transfer:
Employees may be transferred from one department to another wherever the post becomes vacant.
5. Internal advertisement:
The existing employees may be interested in taking up the vacant jobs. As they are working in the company since long time, they know about the specification and description of the vacant job. For their benefit, the advertisement within the company is circulated so that the employees will be intimated.

Benefits & Limitations of Internal Sources of Recruitment
1. The existing employees get motivated.
2. Cost is saved as there is no need to give advertisements about the vacancy.
3. It builds loyalty among employees towards the organization.
4. Training cost is saved as the employees already know about the nature of job to be performed.
5. It is a reliable and easy process.

1. Young people with the knowledge of modem technology and innovative ideas do not get the chance.
2. The performance of the existing employees may not be as efficient as before.
3. It brings the morale down of employees who do not get promotion or selected.
4. It may leads to encouragement to favouritism.
5. It may not be always in the good interest of the organization.


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