The following are the advantages of recruiting employees by the internal source:
1. This improves their morale and induces them to constantly update their knowledge.
2. As the management already knows the employee, there is no risk involved in appointing him to some other post in the organization.
3. As the employee is already familiar with the organizational policies, rules and regulations, these need not be explained to him.
4. Internal source of recruitment also saves lot of time and money for the management.
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