Human Resource Management

Internal Sources

If an organization has been effective in recruiting and selecting employees in the past, one of

the best sources of talent is its own employees. This has several advantages. First the organization

should have a good idea of the strengths and weaknesses of its employees. If the organization

maintains a skills inventory, it can use this as a starting point for recruiting from within.

In addition, performance evaluations of employees are available. Present and prior managers

of the employee being considered can be interviewed to obtain their evaluations of the employee's

potential for promotion. In general, more accurate data are available concerning current

employees, thus reducing the chance of making a wrong decision.

Not only does the organization know more about its employees, but the employees know

more about the organization and how it operates. Therefore, the likelihood of the employee

having inaccurate expectations and/or becoming dissatisfi ed with the organization is reduced

when recruiting is done from within.

Another advantage is that recruitment from within can have a signifi cant, positive effect on

employee motivation and morale when it creates promotion opportunities or prevents layoffs.

When employees know they will be considered for openings, they have an incentive for good

performance. On the other hand, if outsiders are usually given the fi rst opportunity to fi ll job

openings, the effect can be the opposite.

A fi nal advantage relates to the fact that most organizations have a sizable investment in

their workforce. Full use of the abilities of the organization's employees improves the organization's

return on its investment.

However, recruiting from within also has disadvantages. One danger associated with promotion

from within is that infi ghting for promotions can become overly intense and have

a negative effect on the morale and performance of people who are not promoted. Another

danger involves the inbreeding of ideas. When recruiting comes only from internal sources,

precautions