Despite internal sources of recruitment being economical, why do the companies not always use this source? Give any four reasons.

Because of the following reasons, companies always not use the internal sources but use the external sources of recruitment:

(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 increases manifold which in turn increases 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.

(iv) Competitive Spirit: When the existing employees in an organisation come in contact with the new employees recruited through the process of external recruitment, a spirit of competition is born. Consequently, their work performance is improved.