Merits of Internal Sources of recruitment:

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  1. Improves Morale: The internal sources of recruitment will boost morale of employees. They are assured of higher positions whenever vacancies arise. Existing employees are given preferences in promotions. Outsiders are employed only when suitable candidates are not available from within.
  2. Proper Evaluation: The management is in a better position to evaluate the performance of existing employees before considering them for higher positions. An outside employed just on the basis of an interview may not prove suitable later on. The service records of existing employees will be a guide to study their suitability for ensuring vacancies.
  3. Economical: The method of internal recruitment is economical also. The cost incurred in selecting a person is saved. Moreover, internal candidates do not required any training since they are well acquainted with various jobs in the organization.
  4. Promotes Loyalty: Internal sources of recruitment promote loyalty among employees. They are preferred to consider at the time of filling up higher positions. They will feel a part and parcel of the organization and will always try to promote its interests.
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