Recruitment and selection of new personnel and employees is an important human resource activity. Recruitment refers to the process of inviting, selecting and assigning appropriate personnel for jobs. Recruitment is inclusive of selection. There are two recruitment goals: attracting suitable candidates for job and encourage unsuitable candidates to select themselves out. There are two sources of recruitment. External recruitment sources imply to selecting suitable candidate outside the organization. Internal recruitment sources refer to hiring employee from the organization itself (hiring a person who is already working for that organization). A junior level employee can be promoted to senior level or managerial position (Chan, 1996). It is the best way of selecting employees for managerial or executive positions. It involves promotion, that is, moving employee from lower level to higher level and transfer, which is, interchanging job without changing rank or position. Internal sources of recruitment include job advertisement, employee referrals, and internal recruiting database. Internal recruitment is beneficial for firms.
Internal recruitment saves the time and money of the organization: The resources and money spent on internal recruitment is much less than that spent on external recruitment. Time to recruit internal employee is very less and position is filled faster.
Reduction in training time: Internal recruitment drastically reduces time for training. Internal recruits do not require orientation training as they are already aware of organizational process, rules and regulations of firm as well as the culture and structure of organization.
Integration between headquarters and new subsidiary is important for effective working and success of organization. Global integration refers to monitor of and co-ordination between overseas subsidiaries, transmission of practices and knowledge from headquarters to overseas subsidiaries. The business activities are adopted and modified to understand parent practices and local conditions. There are several factors that influence global integration (Brewster, Sparrow and Harris, 2005).
Improved and enhanced productivity: Internal recruits have knowledge about organizational process as well as knowledge of company policies and procedures. They tend to learn skills and competencies required for new job with greater ease. It also motivates employees to perform better and more efficiently.
Boost morale of employees: Promoting employees and rewarding employees for their performance improves the morale of the employee. It enhances stability and loyalty amongst the employees. It also reduces employee turnover and absenteeism. It increases employee retention by motivating employees to look out for career growth within the organization. Employees are more likely to stay within organization.
Facilitate succession planning: Succession planning is a process which focuses on employing the appropriate people in the correct position at the right time to reach the organization’s objectives. For employees who have potential, internal opportunities can be created.