Types of Recruitment

PSYCH-105 Industrial Psychology

Chapter 15: Recruitment and Selection

Unit 1

Unit 2

Unit 3

Unit 4


Types of Recruitments

I. Internal Recruitment

By recruiting within the firm from those who are currently employed. There are two important internal sources of recruitment:-

1. Transfers

Transfers involves the shifting of an employee from one job to another or one department to another according to their efficiency and experience. 

2. Promotion

Promotion is the transfer of an employee to a job that pays more money or one that enjoys some preferred status. Employees are promoted from one position / level to another (higher) carrying higher responsibility, facilities, status and pay. 

Advantages of Internal Recruitment
  1. It is less expensive.
  2. Good performance is rewarded.
  3. Candidates are already oriented towards the company.
  4. Organizations have better knowledge about internal candidate. 
  5. It offers wonderful opportunities for the current staff to further their career. 
  6. May help to retain staff who might otherwise leave.
Disadvantages of Internal Recruitment
  1. The size of prospective applicant is considerably reduced.
  2. External candidate might be better suited / qualified for the job. 
  3. Another vacancy will be created that has to be filled. 
  4. Politics play greater role. 
  5. It abets raiding. 
  6. Morale problem for those who are not promoted.

II. External Recruitment

By recruiting people from outside i.e. through the generation of resource database via advertisement or other methods. The commonly used external sources are:- 

1. Advertisement

Advertisement in local or national newspaper and trade and professional journals is generally used. Most of the senior positions in industry are filled by this method when they cannot be filled from within. 


  • Allows you to reach a larger applicant pool 
  • More information about the organization, job description and job specifications can be given in the advertisement to allow self screening by the candidates.
  • Creates an opportunity to attract more highly qualified candidates


  • Can be time consuming
  • Requires careful screening process 
  • It brings in flood of response, many from quite unsuitable candidates and many applicants try to woo or approach the members of the selection body

2. Employment Exchange

Employment exchange and employment agencies provide a nationwide service for getting the required personnel. Employment exchanges in India are run by government. Employment exchanges act as a link between the employers and prospective employees.

3. Campus Recruitment

Direct recruitment from education institutes for jobs which require technical or professional qualifications, has become a common practice. Various management institutes, engineering colleges, medical colleges, research laboratories etc are a good source for recruiting well qualified fresh graduates from their institutes. 


  • Source of highly qualified applicants
  • May reduce need for training

4. Direct Applications

Job seekers submit unsolicited application letters or resumes. Many qualified personnel apply for employment to reputed companies on their own initiative, such applications are known as unsolicited applications. They serve as good source of manpower.

5. Consultants / Outsourcing

Some employment agencies or private consultancy firms have started developing human resource pool, by employing candidates for themselves. These agencies provide supply them on temporary basis to various companies based on their need.

6. Labour Contractor

These are specialist people who supply man power to factories manufacturing plants this method is used for hiring unskilled or semiskilled workers. They are appointed on contract basis. 


  • When contractor leaves the organization such people who are appointed also have to leave the concern.

7. Poaching / Raiding / Competitors

Buying talent (rather than developing it). Poaching means employing a competent and experienced worker already working with another reputed company by offering him attractive pay packages and other terms and conditions. But it seems to be unethical practice and not openly talked about.  

8. E Recruitment

The use of technology to assist the recruitment process. Organization advertises vacancy through World Wide Web (WWW) and job seekers send their resume curriculum vita (CVs) through email. Job seekers can also post their resume on interned where employees can find them. 


  • Fast
  • Inexpensive
  • Wide coverage


  • Takes time to write effective job announcements

9. Telecasting

Telecasting of vacant job on TV, (Doordarshan or other channels) special programs like job watch, youth plus, employment news etc. publicized detail requirements qualities required and profile of organization.

Advantage of External Recruitment
  1. Benefit of new talent, new skills with new ideas
  2. Large number of applicants 
  3. Everlasting source and never dries up
  4. Serves as inducement for the existing employees to show better performance
Advantages of Internal Recruitment
  1. Longer process
  2. More expensive procedures to advertisement and interviews required
  3. Adjustment of new employees take longer time
  4. Can create dissatisfaction and frustration among existing employees aspiring promotion 

Author – Dr. Niyati Garg

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