Question

Subject: Human Resource Management

1. What are the advantages and disadvantages associated with using internal sources of job candidates? Explain.

Answer 1

The advantages associated with using internal sources of job candidates are as follows:

• The overall time required in the hiring process is reduced significantly as the pool of suitable candidates and their details are readily available with the organization.
• The selected candidate can immediately start working as he or she is already a part of the organization as is aware of the organization's work culture. On the other hand, an external candidate would require to be onboarded and would need more time to get accustomed to the organization's work culture.
• The overall hiring process costs much less than hiring from external sources. Hiring from external sources may require posting job details on online portals, shortlisting of resumes, conducting background checks, etc. All such activities have a significant cost for the organization and may even require services of third party agencies. These costs are comparably much lower while using internal sources of job candidates.
• Hiring using internal sources helps to increase employee motivation and engagement. Employees may be motivated to work in different roles within the organization so that they keep on developing new skills and continue to grow in their careers.

The disadvantages associated with using internal sources of job candidates are as follows:

• There is only a limited pool of candidates available while using internal sources of job candidates. The candidates have to be chosen from the organization pool only.
• The internal sources of job candidates may not always provide the best candidates for the required job. If the job requires specific skills, and the internal pool of candidates does not have the expertise in those skills, the organization may not able to hire the right candidate using internal sources.
• Internal job candidates may not be able to bring fresh ideas or perspectives which may be required in certain roles.
• When candidates are hired using internal sources, a gap or vacancy would be created in their current positions. This vacancy has to be filled by hiring another candidate, which would require additional time and cost for the organization.