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Difference between Internal Recruitment and External Recruitment

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Internal Recruitment and External Recruitment are two ways of recruiting people into an organization. In the former method, a company makes use of the existing staff to fill up the vacant jobs. However, in the latter method, a company searches for employees from outside sources.

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What is Internal Recruitment?

Making use of existing staff to fill up vacant jobs is known as an Internal source of recruitment. Those employees are recruited for positions that are already working in the organization. Internal recruitment includes promotion and transfer. In promotion, there is a vertical shift of employees, whereas, in transfer, there is a shift of employees from one place or department to another. Internal source of recruitment motivates the existing employees to improve their performance and is also a cheaper method of recruitment, as employees are already working and already well-versed with the working conditions of the organization. Although, employees become promotion-bound, which hampers productivity, and infusion of new blood in the organization is not possible in the case of internal recruitment.

What is External Recruitment?

Searching for employees from sources outside the organization is known as an External source of recruitment. Every job position cannot be filled by internal sources of recruitment, so organizations are required to fill the jobs from external sources. It provides a wide range of choices and infuses new blood into the organization. These include direct recruitment, casual callers, employment exchange, advertisement, campus recruitment, etc. External sources keep the competitive spirit high in an organization, as the existing employees work more hard in order to compete with the new employees. It also has some demerits, as it demotivates the existing employees because their chances of promotion are reduced. Moreover, it is a costly and lengthy method of recruitment.  

Difference between Internal Recruitment and External Recruitment:

Basis

Internal Recruitment

External Recruitment

MeaningMaking use of existing staff to fill up vacant jobs is known as an Internal source of recruitment. Searching and filling employees from sources outside the organization is known as an External source of recruitment. 
ChoiceIt has limited choice.It has a wide choice.
EconomyIt is a cheaper source of recruitment as employees are well-versed in the organization. There is also no cost of advertisement and publicity.It is costly as a lot of money is spent on advertisement and publicity.
TimeIt is less time-consuming.It is a lengthy process.
MotivationIt motivates the existing staff to improve their performance.It demotivates the existing staff and leaves them dissatisfied.
QualityThere is no infusion of new blood and fresh talent in the organization.There is an infusion of new blood and fresh talent in the organization.

Last Updated : 01 Mar, 2024
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