A woman on her phone writing notes down about types of recruitment.

Types of Recruitment: Internal and External Sources

Recruitment is a crucial part of developing and maintaining an effective and efficient team. A good recruitment strategy will cut down the wastage of time and money, which would have incurred for extensive training and development of unqualified resources. Internal sources are often overlooked by organizations, but they are equally important for any organization that has limited access to external talent pools. The first step in implementing an internal recruitment strategy is identifying potential employees from within your company’s workforce who can be promoted or reassigned to new positions as required. These people already know how to work with your company’s culture, systems, practices, etc., so it may not require much additional training on their end when compared to external hires who need more onboarding time before they become productive.

When a recruiter is tasked with finding the right candidate, they have to use different methods and techniques. The goal of recruitment types is to explore various ways that an organization can reach potential job seekers in order for them to be able to find their perfect match.

Not only do recruiters need to make sure they’re using all available channels or recruiting resources, but also tailor these means based on what kind of candidates would fit best with the company’s needs at this moment. Recruitment type boils down to how organizations go about reaching out to prospects who might be interested in applying for open positions within it.

Internal Recruitment

Internal recruitment is the act of recruiting employees from inside an organization. Sources for internal recruitment are readily available to companies and can be found in three ways: transfers, promotions, or re-employment of former staff members.

Internal recruitment is a great way to save time, money, and effort because it increases employee motivation levels. It also allows the organization more flexibility in filling staffing needs with new employees as opposed to only relying on external candidates who may be less qualified for certain positions. However, there are drawbacks that come along with internal hiring such as not meeting all of an employer’s manpower requirements or losing out on diversity due to the lack of exposure outside sources can provide and have low turnover rates versus competing organizations which will have high turnover rates based off their recruiting methods used.

Sources of Internal Recruitment


Transfer refers to the process of exchanging from one job or department to another without any change in rank and responsibilities. Let’s take an example for better understanding how it works: Assume there is a finance company called ABC Ltd, which has two branches, Branch-A and Branch-B; with employees coming back and forth between these departments as needed due to resignations.

Transfer can also refer shifting of staff members from one department or location (depending on their expertise) when the need arises at other locations where they are not present yet but would be required for future projects
The transfer is the process of transferring an employee from one branch to another. It’s also called “internal shifting” where the employee doesn’t have to search for new candidates and expensive sourcing, which saves time and money. This option should be considered before searching or sourcing new employees in case there are project requirements that only this specific individual can do it.


Promotion is the process of shifting an employee from a lower position to a higher one. This can happen by evaluating their performance in the organization and promoting them internally, which means that they fill up vacant positions with promotions instead of hiring new people outside.

Re-employment of former employees

Recruiting former employees is a quick and cost-effective way to fill positions. It saves time, too! A major benefit of recruiting from your own staff is that they’re already familiar with the job description – no need for training or development costs!

Prior Job Applicants

The hiring team checks the profiles of past applicants from the organizational recruitment database. These are people who’ve applied for jobs here in the past, and they’re easily approachable to ask about how their experience was with us so far. A survey will also help them provide feedback on what we could do better or if there’s anything that makes it hard to work at this organization – which is a great way to improve as an employer!


Employee referrals are a time-honored way of sourcing the right candidates at a low cost. It is the process by which organizations may hire new resources through references from current employees, who themselves work for that organization. In this process, present employees can refer their friends and relatives to fill up vacancies as they arise in an easy and successful manner.
Organizations encourage employee referrals because it is a cost-effective and time-saving alternative to hiring candidates externally. Employees are typically rewarded with referral bonuses for successful hires, incentivizing them in the process.

Internal Job Posts

Internal advertisements are the most cost-effective way to find new employees. As an organization, we want all our workers to have equal opportunities for advancement and not just those who are good at networking or can afford expensive agency fees!

External Recruitment

External sources of recruitment can be difficult to find, but they could provide the diversity that an organization needs in order to thrive. External sources include factory gates and advertisements as well as educational institutes or labor contractors with connections like recommendations from friends and family members at work who are looking for jobs themselves.

Sources of External Recruitment

Recruitment at the Gate

The bulletin board outside the factory is a place of opportunity for unsolicited workers. These applicants apply from one job to another in search of work, and they are called wandering-workers. Opportunity awaits at anything that resembles an open door: factories need employees; migrant laborers flock there looking for jobs as well. The information on these boards can be seen by all who walk past them – it’s publicity with benefits!

Job Advertisement

Recruitment by way of advertisements is always the most preferred and popular option. Advertisements are often broadcasted through various media, with a specific job description and specifications in mind for those interested. It provides an efficient method to screen candidates looking for jobs while also attracting many potential applicants at once.

A new project has arisen within XYZ Ltd, and in order to be successful, it must adhere to a very high level of competition. One crucial decision lies before the company’s executives: which recruitment type should they choose? It is imperative that this choice meets all expectations for success as there is no room for error. The ideal method would be through advertisement.
Many companies are using advertisements as a way to recruit new employees. Advertising can be an expensive process, but if you’re in need of hiring many people at once then it’s the best option for finding qualified candidates.

Many corporations rely on advertising when looking for potential hires due to its ability to reach large volumes of job seekers quickly and inexpensively It may not always have the right candidate available though so make sure that your criteria are very specific since there will most likely be too much competition with other employers.

Employment Agencies

One of the best sources for recruitment is through employment agencies. They are run by sectors such as private, public, or government and provide unskilled, semi-skilled, and skilled resources to organizations at a cost. Employment agency databases hold qualified candidates that can be used by employers who need them urgently without having to search extensively on their own; it’s all available in one place!

Educational Institutions/Campus Recruitment

Hiring through educational institutions or the campus recruitment process is a great way for organizations to recruit new employees. Firstly, the company visits technical schools and universities where they offer jobs directly to students by presenting their opportunities in front of them while simultaneously giving an overview of what it’s like working at that particular organization.

Labor Contractors

Contract workers are often sought for temporary work in the manufacturing sector. It is common knowledge that once a contract worker leaves their position, all other employees who occupy positions due to contracts also have to leave.

Professional Organizations

Businesses can use professional organizations to hire a diverse range of personnel, but these special-interest groups are experts in higher-level positions. These associations work as an intermediary between employers and job seekers alike, connecting people with the right skills for any given position.

Word of Mouth

Word of mouth is a great way to source candidates for open positions. But it’s not the only way! Reputable organizations with good images in the market have many ways at their disposal, such as word-of-mouth advertising or social media marketing campaigns that can attract large numbers of qualified job seekers to apply and interview for vacant jobs.

Advantages and Disadvantages of Internal and External Recruitment

Internal Recruitment

Internal sources of recruitment, i.e., hiring employees within the organization have their own set of advantages and disadvantages. The advantage is that it is simple to execute; there’s no need for induction or training as candidates already know their duties once they’re hired in by an employer with in-house resources – which means fewer costs on employee salaries if companies are struggling financially!

It also helps motivate employees who feel valued when a company invests time into them through more intensive interviews than external hires go through during screening processes. Employee loyalty increases because this form of recruiting fosters relationships between colleagues, resulting in excellence at work even from entry-level positions up to management ranks where internal promotion can happen quickly without any long waiting periods like externally sourced talent may face.

The drawback of hiring candidates through internal sourcing is that the new hires may not be as innovative or bring fresh ideas to the table. Furthermore, because all vacant positions cannot possibly be filled internally and resources are often moved around in-house if promoted, there can potentially arise issues between employees who were passed over for promotion while those with more power maintain their position unchallenged. This could lead some fewer content co-workers to become unhappy and demotivated.

External Recruitment

Organizations across the world are choosing external sources of recruitment to promote their company and find new opportunities for job seekers. This means they’re opening up management positions, engineering jobs, customer service roles or sales careers depending on what’s needed at that time. These organizations have realized it is beneficial in a number of ways:

– It encourages more active participation from potential employees who might otherwise not be aware an organization exists;

– Corporate branding increases as people outside the business become familiar with its name which can lead to increased revenue through greater exposure;

– There will never be any bias towards hiring one person over another because all candidates go through intensive interviews and assessment procedures before being offered a role within the workplace so every decision made comes down purely based off their merits.

The disadvantages of recruiting through external sources are as follows:

The process is very lengthy and time-consuming. It also costs more than hiring internally, which will result in a higher turnover rate for the company given that employees cannot afford to wait months or even years while their applications go unanswered. External candidates often demand increased compensation packages compared to internal ones because they recognize how difficult it can be when you have no other prospects within your field of expertise available locally (or anywhere).

Read More Job Spring Articles

If you want to learn about leadership and management tips, human resources, productivity tools, and general topics on jobs and careers, you can read more at JobSpring. It is a job board that offers jobs from multinational companies used by aspiring employees all over the world.

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