In contrast to the internal recruitment, the term external sources of staffing indicate the sources of recruitment outside the enterprise. The persons recruited from outside sources are, thus, unknown to the enterprise so far. Some organizations prefer this source particularly originality, initiative and drive are of paramount importance. Particularly in a competitive economy, fresh blood should be injected into the organization so as to make it more dynamic. The outside sources of recruitment usually include:
- New entrants to the labor force i.e., young mostly inexperienced potential employees – the college students.
- The unemployed with multiple skills and abilities.
- Retired experienced persons.
- All others not in the labor force.
Methods of recruiting from external sources
The most popular methods of recruiting people from external sources are the following:
1. Advertisements: Staff recruitment is one of the purpose of advertisement. This is a very common and effective method of bringing in candidates from outside. The employer puts up an advertisement in the newspaper either in the classified advertisement column or in the form of display advertisement. The name of the post, educational qualifications, experience in the relevant field of activity, salary, etc., are all given in the advertisement. This method is generally suitable for finding out skilled personnel.
2. Employment Exchanges: In India, employment exchanges are run by the Government. In Western countries, employment counsels and private employment exchanges are very popular. The employment exchange, can help the employers to find out suitable personnel. Besides, it can also help job seeker to get appointments. In particular these exchanges are very helpful to procure unskilled and semi-skilled workers.
In India, the employment Exchange (compulsory notification of vacancies) Act, 1959 provides for compulsory notification of vacancies to the employment exchange before filling the vacancies by the employers both in public and private sectors. But unfortunately employment exchanges have been found to be an unpopular source of recruitment by private sector undertakings in India.
3. Personnel Consultants: These personnel consultancy agencies have developed a lot in India. They recruit personnel on behalf of employers. This method of external recruitment is a costly affair. Although this method is very popular in western countries, it is not so popular in India.
4. Colleges, Universities and Institutions: Some progressive employers maintain a dose contact with the universities, colleges, vocational institutes, and management institutes for recruitment to various jobs. It is easier to mold the fresh graduates and hence they follow the well known principle ‘Catch the Young‘. This practice has several points to its credit. This method, however, is in its infancy in India.
5. Recommendations: Applicants introduced by friends and relatives is yet another source of recruitment. Many employers also prefer this method because something about the background of the candidate is known. This method is widely practiced in India. However, this method has the inherent defect of favoritism and nepotism.
6. Labor Contractors: This method is very popular in India. They hire skilled and semi-skilled workers. The labor contractors are in constant touch with workers and bring them to places wherever required. Recently, this system has been in operation for supplying unskilled and semi-skilled laborers to the gulf and middle east countries where large scale construction works are going on.
7. Casual and Unsolicited Applicants: Sometimes, job seekers may visit the factory, office or work site with the hope that jobs would be avoidable. They may be considered for employment. Similarly, job seekers may also put up their applications. If suitable jobs are available, they are interviewed. Even if there is no vacancy, their applications are preserved and called for interview whenever vacancies arise in future. This is the most economical method of recruitment and is popular all over the world.
Besides, those cited above, there are various other methods like notice at the factory gate, inviting applications through labor unions, etc. Computer Data Banks constitutes a very popular source of recruitment in the United States.
Merits of external sources of recruitment: The following are the merits of selecting personnel from outside sources:
- Fresh view points are attracted.
- The employees possess wide range of experience.
- The employee develop the ability to change old habits.