Which of the following is NOT an advantage of using external sources of recruitment?

Economical source

The correct answer is option 4- Economical source.

Economical source is advantage of internal recruitment. External recruitment is very costly to recruit staff from external sources. A lot of money has to be spent on advertisement and processing of applications.

The advantages of using external sources of recruitment are as follows:

(i) Qualified Personnel: By usingexternal sources of recruitment, the management can attract qualified and trained people to apply for vacant jobs in the organisation.

(ii) Wider Choice: When vacancies are advertised widely, a large number of applicants from outside the organisation apply. The management has a wider choice while selecting the people for employment.

(iii) Fresh Talent: The present employees may be insufficient or they may not fulfill the specifications of the jobs to be filled. External recruitment provide wider choice and brings new blood in the organisation. However, it is expensive and time-consuming.

(iv) Competitive Spirit: If a company taps external sources, the existing staff will have to compete with the outsiders. They will work harder to show better performance.

Limitations of External Sources

1. Dissatisfaction among existing staff: External recruitment may lead to dissatisfaction and frustration among existing employees. They may feel that their chances of promotion are reduced

2. Lengthy process: Recruitment from external sources takes a long time. The business has to notify the vacancies and wait for applications to initiate the selection process.

3. Costly process: It is very costly to recruit staff from external sources. A lot of money has to be spent on advertisement and processing of applications.