Merits: External recruitment source has the following merits:
i. Qualified Personnel: The external source of recruitment gives an opportunity to the qualified people from outside the organisation to enter it. This benefits both the organisation and the applicants from outside.
ii. Wider Choice: By using the external source of recruitment, the number of applicants increase manifold which in turn increase the area of choice. The managers can appoint the most talented persons after examining the capabilities and talents of all the applicants.
iii. Fresh Talent: The external source of recruitment helps the people with new and modern ideas to enter an organisation which certainly helps the organisation.
Limitations: Even if there are many advantages of the external recruitment, it is not without disadvantages. Following are its major demerits:
i. Dissatisfaction among Existing Staff: When the external system of recruitment is adopted, it puts an end to the chances of promotion of the existing staff. This naturally affects their morale and they do not work with complete dedication.
ii. Lengthy Process: The external system of recruitment is a lengthy process involving advertisement for the posts, wait for the applications’ selection, etc. which consumes a lot of time. Since it is a lengthy process, sometimes it is not considered appropriate.
iii. Costly Process: The external process of recruitment involves advertisement and a long selection process and above all training the selected candidates involves a lot of expenditure. Therefore, it is an expensive process.