1. Improves Morale. The internal sources of recruitment will boost morale of employees. They are assured of higher positions whenever vacancies arise. Existing employees are given preferences in promotions. Outsiders are employed only when suitable candidates are not available from within.
2. Proper Evaluation. The management is a better
position to evaluate the performance of existing employees before considering them for higher positions. An outsider employed just on the basis of an interview may not prove suitable later on. The service records of existing employees will be a guide to study their suitability for ensuring vacancies.
3. Economical. The method of internal recruitment is economical also. The cost incurred in selecting a person is saved. Moreover, internal candidates do not require any training since they are well acquainted with various jobs in the organisation.
4. Promotes Loyalty. Internal sources of recruitment promote loyalty among employees. They are preferred to consider at the time of filling up higher positions. They will feel a part and parcel of the organisation and will always try to promote its interests.
5. Motivation Technique. Internal recruitment can be used to motivate employees. Since there is a scope for promotions and higher responsibility jobs, employees will try to put in their best efforts.
6. Social Responsibility. By giving new opportuni-
ties to existing employees the enterprises satisfying social responsibility also. It is the responsibility of every organisation to satisfy its employees by keeping their aspirations in mind.
7. Trade Union’s Support. This source of recruitment has the support of trade unions also. Trade unions always support the cause of existing employees so there will be no conflict on this score.
8. Stability of Employees. Internal source of recruitment ensures stability of employees. Since the organisation provides the better opportunities to suitable employees, they will like to stay with the enterprise.
Demerits of Internal Sources
1.Internal sources often leads to inbreeding and discourages new blood from entering into organisation.
2.There are possibilities that internal sources may dry up it may be difficult to find the requisite personnel from within an organisation.
3.Since the learner does not know more than the innovations worth the name can be made. Therefore, on jobs which require original thinking, this prac
