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Question:

Why are internal sources of recruitment considered to be more economical?

Answer:

Internal source of recruitment refers to recruitment from within the organisation, from the existing staff and employees. The internal sources of recruitment are considered to be more economical than external sources of recruitment because of the following reasons:

  1. Simple process: the process of selection and placement becomes simpler, as the background of the candidate is already known.
  2. Facilitate training: Transfer from one job to another facilitates training of employees.
  3. No induction training: Employees selected from within the organisation do not need induction training.
  4. Filling deficiencies: It helps to fulfill the deficiency of one department with the surplus of another.
  5. Inexpensive: Recruitment from internal sources does not require much time, money and effort.


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