Sources of External Recruitment Page |1

External Recruitment

Recruitment refers to the process of attracting, screening and selecting the most qualified
candidates for the job. Recruiting employees can be a somewhat precarious process. With the
exorbitant cost of hiring and training an employee with job and soft skills matching the job
description, making a mistake in this arena can substantially harm net profit for the entire year.

An external recruitment strategy is one which a human resources department will systematically
search the employee pool outside its own employees to fill positions. External sources are
external to a concern. But it involves lot of time and money. Many firms will use advertisements
in newspapers, job search websites, job fairs and referrals from current employees to fill
positions. Some companies will utilize a temporary employee agency to fill positions that can be
completed quickly and with less company-specific skill required to complete the desired task.
Other firms will use headhunters or hiring consultants to seek, screen and deliver employees for
a fee. Educational institutes such as medical and engineering colleges are a good source of
recruitment. Also placement agencies such as private consultancy firms perform recruitment
functions on behalf of client companies by charging a fee.

Sources of External Recruitment

1. Advertisements - Advertisements of the vacancy in newspapers, journals and periodicals are

a widely used source of recruitment. This is specially so in case of recruitment of qualified
and experienced management and technical personnel. The higher the position in the
organization, the more widely dispersed the advertisement is likely to be. The company
needing manpower advertises details about the company, job, requirements, salary
perquisites, duties and responsibilities etc. It invites applications from suitable candidates. If
the advertisement is clear and to the point, candidates can assess their abilities and suitability
for the post and only those who possess the requisite qualifications will apply. The advantage
of advertising is that all details about the job can be given in advertisement to allow self-
screening by the prospective candidates. Because of its wide reach, advertisement gives the
management a wider range of candidates from which to choose. Its disadvantage is that it
brings large number of applications whose screening costs may be quite heavy. It is also very
time consuming. Many firms use what it called “blind advertisement,” in which the
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organization does not reveal its identity. Blind advertisements use Box No. and do not
publish the name of the company that is advertising. Respondents are asked to reply to a Box
No. The use of box number will prevent a large number of applicants from canvassing for the
job but they do not attract good candidates who feel that it is not worthwhile to apply without
knowing the name of the organization. That is why large organizations with a national
reputation do not use blind advertisement.

2. Employment Agencies/Exchanges - There are government as well as private employment

agencies providing a nation-wide or area-wise service in matching personnel demand and
supply. In many countries, there are employment exchanges and employment and guidance
bureau which provide a range of service. In some cases, compulsory notification of vacancies
to the employment exchange is required by law. Employment seekers get themselves
registered with these exchanges. The employment exchanges provide job information to job
seekers and help employers in identifying suitable candidates. Employment exchanges are
well regarded particularly in the field of unskilled, semi-skilled and skilled operative jobs.
However, in the technical and professional area, private consultancy firms provide
recruitment facilities.

3. Placement Agencies - Several private consultancy firms perform recruitment and selection
functions on behalf of client companies by charging a fee. These agencies are particularly
suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment
Process Outsourcing).

4. Gate Hiring - In a country like ours, where there are a large number of unemployed people,
it is usual to find job-seekers thronging the factory gates. This a source of external
recruitment in which the applications for vacancies are presented on bulletin boards outside
the Factory or at the Gate. This kind of recruitment is applicable generally where factory
workers are to be appointed. There are people who keep on soliciting jobs from one place to
another. These types of workers apply on their own for their job. Whenever workers are
required, the people who are available at the gate are recruited in necessary number. This
method can be used safely for unskilled workers. In some industries, a large number of
workers work as ‘badli’ or substitute workers. Whenever a permanent worker is absent, a
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substitute is employed in his place from among the people at the gate. More efficient among
these may be recruited to fill permanent vacancies.

5. Educational Institutions - Direct recruitment from colleges and universities is prevalent for
the recruitment of higher staff in western countries but not in that extent as in Bangladesh.
Many big organizations maintain a close liaison with educational institutions for recruitment
to various jobs. Various management institutes, engineering colleges, medical Colleges etc.
are a good source of recruiting well qualified executives, engineers, medical staff etc. Final
year students, who are soon to be graduates, are interviewed. Various recruiting groups
develop systematic formal university recruiting programs. They hold preliminary on-campus
interviews and select some students for final interview mostly at their offices. Suitable
candidates are selected by the organization based on their academic record, communication
skills, intelligence, etc. This source is also known as Campus Recruitment. They have special
recruitment cells which help in providing jobs to fresh candidates. This source is used for
recruiting qualified, trained but inexperienced candidates.

6. Employee referrals/recommendations - There are certain people who have experience in a

particular area. They enjoy goodwill and a stand in the company. There are certain vacancies
which are filled by recommendations of such people. In order to encourage existing
employees, some concern have made a policy to recruit further staff only from the applicants
introduced and recommended by employees or employees' union. Many organizations have
structured system where the current employees of the organization can refer their friends and
relatives for some position in their organization. Also, the office bearers of trade unions are
often aware of the suitability of candidates. Management can inquire these leaders for
suitable jobs. Other conditions being equal, preference will be given to friends and relatives
of existing employees. If the candidate of an existing employee gets preference in the matter
of recruitment, it is sure to develop a sense of belonging amongst workers. This, however, is
likely to encourage nepotism i.e., persons of one’s own community or caste may only be
employed. This may create problems for the organization. The biggest drawback of this
source is that the company has to rely totally on such people which can later on prove to be
inefficient.
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7. Labor Unions - Generally unemployed or underemployed persons or employees seeking

change in employment put a word to the trade union leaders with a view to getting suitable
employment due to latter rapport with the management. In many organizations, labor unions
are regarded as a source from which to recruit manpower. This facilitates increasing the
sense of cooperation and in developing the better industrial relations. But sometimes trade
unions support a candidate who is not suitable for the job and not acceptable to management.
This weakens the labor relations.

8. Leasing - To adjust short term fluctuations in personnel needs, the possibilities of leasing
personnel for some specified period may be considered. This system of leasing has been well
adopted by the public sector organizations with the rapid growth of public sector; the acute
shortage of managerial personnel has been solved by borrowing the personnel from the
Government departments. At the end of their term they are given option to choose either
parent services or the present organization.

9. Waiting Lists - Many organizations prepare waiting lists of candidates who have gone
through the recruitment processes but who have not been employed for the time being. When
the need arises, such candidates may be called for employment. Such a source can be
developed through provisions of attractive employment.

10. Field Trips - An interviewing team makes trips to towns and tides which are known to
contain the kinds of employees required by the enterprise. Arrival dates and the time and
venue of interview are advertised in advance.

11. Unsolicited Applications - One of the important sources of recruitment is unsolicited

applicants who send their requests for appointment against a vacancy, if any. Depending on
the image of the organization, its prompt response, participation of the organization in the
local activities, level of unemployment, candidates apply casually for jobs through mail or
handover the application in the Personnel department. Many job seekers visit the office of
well-known companies on their own. Such callers are considered nuisance to the daily work
routine of the enterprise. But can help in creating the talent pool or the database of the
probable candidates for the organization. By appointing such casual callers the employer
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saves not only the selection and training costs but also expenditure in the form of pension,
insurance and fringe benefits. This would be a suitable source for temporary and lower level
jobs. 

12. Labor Contractors - In many industries, workers are recruited through contractors who are
themselves the employees of these organizations. These are the specialist people who supply
manpower to the Factory or Manufacturing plants. Through these contractors, workers are
appointed on contract basis, i.e. for a particular time period. Under conditions when these
contractors leave the organization, such people who are appointed have to also leave the
concern. Manual workers can be recruited through contractors who maintain close contacts
with the sources of such workers. This source is used to recruit labor for construction jobs.

13. Ex-employees - Ex-employee means persons who have even worked in the enterprise and
have left the organization and now eager to return. Such employees having good record may
be preferred. They will require less initial training.

14. Deputation Personnel - The organization may also recruit candidates who are sent on
deputation by the Government or Financial institutions or by holding or subsidiary
companies.

15. Data Banks - The management can collect the bio-data of the candidates from different
sources like Employment Exchange, Educational Training Institutes, candidates etc. and feed
them in the computer. It will become another source and the company can get the particulars
as and when required.

16. Outsourcing - Some organizations recently started developing human resource pool by
employing the candidates for them. These organizations do not utilize the human resources;
instead they supply HRs to various companies based on their needs on temporary or ad-hoc
basis.

17. Mergers and Acquisitions - Business alliances like acquisitions, mergers and take over help
in getting human resources. In addition, the companies do also alliances in sharing their
human resource on ad-hoc basis.
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18. Professional Organizations - Professional organizations or associations maintain complete

bio-data of their members and provide the same to various organizations on requisition. They
act as an exchange between their members and recruiting firm.

19. E-recruitment - The technological revolution in telecommunications helped the

organizations to use internet as a source of recruitment. Organizations advertise the job
vacancies through the World Wide Web (www). The job seekers send their applications
through e-mail using the internet.

20. Body Shopping - Professional organizations and the hi-tech training develop the pool of
human resource for the possible employment. The prospective employers contact these
organizations to recruit the candidates. Otherwise the organizations themselves approach the
prospective employers to place their human resources. These professional and training
institutions are called body shoppers and these activities are known as body shopping. The
body shopping is used mostly for computer professionals. Body shopping is also known as
employee leasing activity.

21. Consult In - The busy and dynamic companies encourage the potential job seekers to
approach them personally and consult them regarding the jobs. The companies select the
suitable candidates and advise the company regarding the filling up of the positions. Head
hunters are also called search consultants.

22. Similar Organizations - Generally experienced candidates are available in organizations

producing similar products or are engaged in similar business. The Management can get
potential candidates from this source.

23. Walk In - The busy organization and rapid changing companies do not find time to perform
various functions of recruitment. Therefore, they advise the potential candidates to attend for
an interview directly and without a prior application on a specified date, time and at a
specified place.
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Benefits of External Sources of Recruitment

1. Wide options - External sources bring in a large number of applicants. The candidates with
skill, knowledge talent etc is generally available. This will permit the enterprise to have a
free hand in making the selection.

2. Infusion of new blood - The enterprise can expect to get fresh, talented candidates from
outside who had not been exposed or overexposed to the corporate culture. This means
infusion of new blood and new ideas, into the enterprise represented by outside candidates.
He/She may bring information or methodologies from his/her former employer that can be
integrated into the organization’s best practices.

3. Element of Competition - Internal candidates have to compete with outside candidates for
the vacancies. This is a healthy feature from the point of view of the enterprise.

4. There are less chances of bias or partiality - Internal job pools may cause problems with a
larger company's diversity mix, and lead to problems with the Equal Employment
Opportunity Commission in terms of promoting a diverse workplace. External job recruiting
allows for rebalancing in this realm if needed. External recruiting may lead to team stability,
as teams may remain intact when hiring externally.

5. There is no need to maintain confidential records.

6. Expertise, excellence and experience in other organizations can be easily brought into the
organization.

7. Human Resource mix can be balanced.

8. Qualitative human resource benefits the organization in the long run.

9. Increase in the selection ratio i.e. recruiting more candidates.

10. HR professionals can concentrate on strategic issues.

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Limitations of External Sources of Recruitment

1. Frustration among existing employees - Recruitment from outside may cause dissatisfaction
and frustration among the existing employees who aspire for the jobs by promotion or
transfer. This is likely to strain the relations between management and the employees. It may
not develop loyalty among the existing employees. The existing employees may leave the
organization if outsiders are given higher post.

2. High expense - The process of recruitment of candidates from outside involves considerable
expense in the form of advertising for vacancies, screening and selection.

3. Time consuming - External recruitment takes more time than the internal recruitment since
the enterprise has to publicize about the vacancies, or otherwise contact the sources and wait
for their response. Moreover, the selection process is also very lengthy.

4. Lack of certainty - The prospective candidates from outside may or may not be good for the
enterprise. There is no guarantee that the enterprise will be able to attract suitable applicants
even after advertisement, and other steps.

5. Campus recruited employees lack work experience.

6. There is no confidentiality.

7. Specified vacancies have to be filled by candidates referred by employment exchanges

which do not allow other candidates to be eligible.
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References

http://www.ask.com/question/internal-and-external-sources-of-recruitment

http://www.educationobserver.com/forum/showthread.php?tid=12054

http://www.educationobserver.com/forum/showthread.php?tid=12055

http://www.naukrihub.com/recruitment/external-sources.html

http://kalyan-city.blogspot.com/2011/07/internal-and-external-sources-of.html

http://www.yourarticlelibrary.com/business/what-are-the-different-external-sources-of-
recruitment/2460/

http://managementstudyguide.com/types-of-recruitment.htm

http://smallbusiness.chron.com/difference-between-internal-external-recruitment-strategies-
25708.html

http://www.bms.co.in/what-are-the-different-internal-and-external-sources-of-recruitment-
explain-the-merits-and-demerits-of-each/