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Difference between Internal Recruitment and External Recruitment

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  • Last Updated : 09 Aug, 2022
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Making use of existing staff to fill up vacant jobs is known as Internal source of recruitment. Those employees are recruited for positions who are already working in the organisation. 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 organisation. Although, employees become promotion bound, which hampers productivity, and infusion of new blood in the organisation is not possible in case of internal recruitment.

Searching for employees from sources outside the organisation is known as External source of recruitment. Every job position cannot be filled by internal sources of recruitment, so organisations are required to fill the jobs from external sources. It provides a wide range of choices and infuses new blood into the organisation. These include direct recruitment, casual callers, employment exchange, advertisement, campus recruitment, etc. External sources keep the competitive spirit high in an organisation, 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 Internal source of recruitment. Searching and filling employees from sources outside the organisation is known as 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 with the organisation. 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 organisation.There is an infusion of new blood and fresh talent in the organisation.
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