196 Table 4.1: Advantages and disadvantages of internal and external
sources of recruitment Types of Recruitment Advantages Disadvantages Internal i) It creates promotion opportunities for employees. ii) It reduces the cost of recruitment. iii) The internal applicant is better known than those from external sources – the selection process is therefore simplified. iv) The organisation benefits from investment it made in training of employees. v) There is less risk of making mistakes in selection because it is easier to appraise the performance of internal applicants. vi) Increased employee commitment i) Qualified people may not be available within the organisations. ii) A strict internal recruitment policy might lead to inbreeding i.e. the perpetuation of old ways of doing things and stagnation of the organisation. iii) The organisation may lag behind others within the industry which are recruiting people with superior skills from outside. iv) Reduced talent pool v) It can breed unhealthy rivalry External i) It creates a large pool of people from which the organisation could recruit the best. ii) It helps bring in better qualified people into the organisation. iii) Reduced training costs iv) It enhances workplace diversity i) It is an expensive source of recruitment. Cost incurred on external recruitment includes cost of advertising,
interviews, selection tests, background investigation and medical examinations. ii) The
organisation could make the (iii)Wrong choice of employees.
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