Internal sources include personnel already on the pay-roll of an organisation. Filling a vacancy from internal sources by promoting people has the advantages of increasing the general level of morale of existing employees and of providing to the company more reliable information about the candidate. Among the internal sources, the following may be included:
(a) Promotions
(b) Transfers and
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(c) Response of employees to a notified vacancy.
Merits of Internal Sources of Recruitment:
1. Internal sources of recruitment have the advantage of absorbing people already acquainted with the company culture.
2. The employees are tried and tested people and the company can depend on them.
3. It is a useful signal to employees and assures them that their services are recognised and this helps in maintaining their motivation and morale.
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4. It reduces labour turnover as it gives employees a sense of job security and opportunity for advancement.
5. The employees are fully acquainted with the organisation hence, job training can be reduced.
6. Internal sources of recruitment are less costly than the other sources of recruitment.
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Demerits of Internal Sources of Recruitment:
Internal sources of recruitment suffer from certain demerits which are:
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1. It limits the choice to a few employees only.
2. The likes and dislikes of the superiors play an important role in the selection of an employee.
3. It creates frustration among those employees who are not selected.