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Questions
Why are internal sources of recruitment considered to be more economical?
Why internal sources of recruitment are more economical than external sources?
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Solution
Internal sources of recruitment refer to the sources that are endogenous to the organization, that is, within the organization. There are two ways of filling the jobs internally, namely transfers and promotions. It has the advantage of being more economical than the other sources of recruitment. Filling the jobs through internal sources is cheaper in terms of time as well as money. On one hand, the time spent in the whole recruitment and selection process is diminished to a large extent through internal recruitment. On the other hand, it lowers the cost by saving the expenditure on advertisement and other related processes. Along with this, the money spent on training the new employees is also curtailed. Thus, in contrast to other sources, the internal sources of recruitment are more economical in nature.
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