What are the different sources of recruitment? Explain the merits and demerits of each


Q. What are the different sources of recruitment? Explain the merits and demerits of each.


Ans.  The sources of recruitment are broadly divided into internal sources and external sources consisting of the following:


Internal sources of Recruitment:


1. Present Permanent Employees :  Organizations consider the candidates from this source for higher level of jobs due to availability of most suitable candidates for jobs relatively or equally to external sources, to meet the trade union demands and due to the policy of the organization to motivate  the present employees.


2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on present job.


3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone some interpersonal conflicts for promotion.


4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his family members.


5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives.


External Sources of Recruitment


6    Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned.


1     Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants inIndia perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities.


2     Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises inIndia to fill certain types of vacancies through public employment exchanges.


3     Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm.


4     Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational Training Institutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required.


5     Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level of unemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs.


6     Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source.


7     Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management.


8     Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.


9     Consult In: the busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants.


10  Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity.


11  Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis.


12  E_recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send their applications through e-mail using the internet.


13  Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis.


Merits and Demerits of Internal Sources of Recruitment



Sr. Merits of Internal Sources of Recruitment Demerits of Internal Sources of Recruitment
1. Motivates present employees when they are upgraded internally. Trade union pressure may not always give the right candidate for the job. The management may have to consider some concessions.
2. Retrenched workers get an opportunity to work again. Management’s gets a chance to postpone promotion due to interpersonal conflicts.
3. Dependents of the deceased get a job easily Excessive dependence on this source results in in-breeding, discourages flow of new blood into the organization.
4. Morale of employees is improved The organization becomes dull without innovations, new ideas, excellence and expertise.
5. Loyalty, commitment, security of present employees can be enhanced  
6. Cost of recruitment, training, induction, orientation, etc is reduced  
7. Trade unions can be satisfied.  



Merits and Demerits of External of Recruitment


Sr. Merits  of External Sources of Recruitment Demerits of External Sources of Recruitment
1. The candidates with skill, knowledge talents etc are generally available. Campus recruited employees lack work experience.
2. Cost of employees can be minimized. Cost of recruitment is high and there is no confidentiality.
3. Expertise, excellence and experience in other organizations can be easily brought into the organization. Specified vacancies have to be filled by candidates referred by employment exchanges which do not allow other candidates to be eligible.
4. Existing sources will also broaden their personality.  
5. Human Resource mix  can be balanced  
6. Qualitative human resource benefits the organization in the long run.  
7. Reduction in time for recruitment  
8. Increase in the selection ratio i.e. recruiting more candidates.  
9. HR professionals can concentrate on strategic issues.  


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