1.  Internal Recruitment: This is a recruitment that takes place within the concern or organization. When it comes to internal sources of recruitment, they are readily available to an organization. There are primarily three – Transfers, promotions, and Re-employment of ex-employees.

This internal recruitment may lead to an increase in employee productivity as their motivation level increases. It also saves time, money, and effort. However, a drawback of internal recruitment is that it refrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done.

Internal sources are primarily 3

1. Transfers
2. Promotions (through Internal Job Postings)
3. Re-employment of ex-employees – Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.

2. External Recruitment – External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern. But it involves lot of time and money. The external sources of recruitment include – Employment at the factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labor contractors, recommendations, etc.

1. 1. Employment at Factory Level – This is 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. Some people keep on soliciting jobs from one place to another. These applicants are called unsolicited applicants. These types of workers apply on their own for their jobs. For this kind of recruitment, workers tend to shift from one factory to another and therefore they are called “badli” workers.
   2. Advertisement – It is an external source that has an important place in the recruitment procedure. The advantage of advertisements is that they cover a wide area of the market and scattered applicants can get information from advertisements. The medium used is Newspapers and Television.
   3. Employment Exchanges – Certain Employment exchanges are run by the government. Most of the government undertakings and concerns employ people through such exchanges. Nowadays recruitment in government agencies has become compulsory through employment exchange.
   4. Employment Agencies – There are certain professional organizations that look towards recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns.
   5. Educational Institutions – There are certain professional Institutions that serve as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions is called Campus Recruitment. They have special recruitment cells which help in providing jobs to fresh candidates.
   6. Recommendations – Certain people 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. 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.
   7. Labour Contractors –These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on a contract basis, i.e. for a particular period. Under conditions when these contractors leave the organization, such people who are appointed have to also leave the concern.