| Bases of Difference | Internal Sources | External Sources | |
| 1 | Meaning | Recruitment is form within the organization. | It is the recruitment from outside employees. |
| 2 | Bases | It is generally based on seniority cum merit. | It is strictly based on merit and qualifications. |
| 3 | Time involved | It is less time consuming. | It is a time consuming exercise. |
| 4 | Cost | It is a cheap source of recruitment. | It is an expensive source of recruitment. It involves time, expense and resources. |
| 5 | Reference | No reference of the employees is needed since all his records are available with the concern. | Since enterprise does not know about person, references about previous work, conduct and character are needed. |
| 6 | Choice | There is a limited choice from among the present employees. | There is a wide choice from a large number of applicants. |
Difference between internal and external sources of recruitment
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