Internal sources of staffing is the most obvious source for an organization. It includes personnel already on the pay roll of an organization i.e., its present working force. Majority of the organization all over the world prefer only this source. Even Courts also prefer this source and considers this as a matter of legal right and order for selection from within whenever writ applications are filed by aggrieved employees.
Benefits of Internal Sources of staffing
There are certain definite advantages of recruiting people from within the organization. They are:
The valuable contacts with major suppliers are kept when staffing is done internally.
It builds loyalty among the employees.
It ensures stability from continuity of employment.
It creates a sense of security among the employees.
It encourages other executives and employees in the lower level to look forward to rising to higher levels.
As the employees are staffed from within the company, are already familiar with the organizations and requirements.
The valuable contacts with existing major customers are materialized.
In short, recruiting employees from within the company can improve the general discipline and confidence of the employees. Thus, internal source is an ideal source for recruitment.
Demerits of Internal Sources of staffing
Internal source also has certain inherent defects. They are:
Staffing from Internal source discourages capable persons from outside, joining the concern.
It is possible that the requisite number of persons possessing the qualifications for the vacant posts may not be available in the organization.
For posts requiring innovation and original thinking, internal method of recruitment cannot be followed.
If only seniority is the criterion for promotion, inefficient people may also be promoted to senior posts. This will ultimately ruin the prospects of the firm.
In spite of these limitations, majority of the organizations all over the world consider employing staff from internal source as the most ideal one.