Types of Recruitment

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Recruitment is the process of locating and hiring suitable candidates from within the organization or externally, to fill the positions. The process involves searching, screening, interviewing and selecting the right candidates for the desired roles.

Types of recruitment

Two types of recruitment: The different sources of recruitment are classified into 2 categories – internal and external sources.

Internal Sources

Internal sources involves recruiting the candidates within an organisation to fill the vacancies. Unlike external sources, companies fill the positions through references of internal employees or by promoting current employees to higher positions.

Methods of Internal Sources

  • Internal advertisements (emails, newsletters)
  • Word of mouth
  • Internal employee referrals
  • Retired employees for temporary or contract positions
  • Current temporary/contract employees for permanent postitions
  • Former employees for part time/freelance or work at home roles

Advantages of Internal Sources: Some of the advantages of internal sourcing are as follows.

  • No hiring cost and consumes far less time
  • No need to provide training
  • Build strong relatioships with employees
  • Used to motivate others to work hard
  • Easy to recognise and pick best talents within an organisation very quickly
  • Employee retention ratio will be high

Disadvantages of Internal Sources: Inspite of many of the above stated advantages,  there are a few disadvantages of hiring internal sources.

  • The positions of the promoted persons remain vacant.
  • No new opportunities for external candidates
  • Chance of favourism in promoting some of the employees
  • Possibility of dissatisfied talented employees, when their peers are promoted


External Sources

External Sources involves recruiting candidates through external networks, job portals or recuitment agencies. Employers hunt for best talents by posting jobs online or in social media like linkedin, facebook etc.

Methods of External Sources

  • Job portals
  • Recruitment and head hunting agencies
  • Job postings in newspapers/websites
  • Campus recruitments
  • Walk-ins

Advantanges of external Sources: Some of the advantages of external sourcing are as follows.

  • Creating new opportunities for external candidates
  • Best candidates can be promoted
  • Lesser chances of favourism
  • Flexibility to recruit the best match for the position


  • Cost to hire is high compared to internal sources.
  • External process is time consuming
  • Acquiring outstanding candidates is strenuous
  • Internal recruiters often lack headhunting skills
  • Ought to approach recruitment agencies for best hire


With a lot of competitors and rapid changes in technology, companies often look for skilled candidates to grow their businesses. Internal employees often lack insight on the modern technologies and methodologies, while external candidates are aware of the latest tools and techniques and can improve businesses with their innovative ideas, creative skills and thorough knowledge.

As the internal employees are less aware of the modern and latest technologies, companies look for external hire, to fill their vacancies, but unfortunately the employees who are settled well, wouldn’t prefer a career change and are not easily available on the job market. Since contacting and convincing such employees can be quite challenging and exhausting, they approach recruitment agencies to hire the best talent for good remunerations. Various Recruitment and headhunting agencies are modernised to track potential and competant candidates, as they know the uncertainty and the marketplace quite well.


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