External recruitment has certain merits:
- The selection of staff can be made from a much greater number of people.
- It brings individuals into the organization who have different exposures.
- It can be used to give a firm a totally new direction.
The demerits of external recruitment include:
- The people selected take longer to get oriented with the internal function of the firm.
- Costs of recruitment and selection are high.
- The interviews used for selection may not review all the adverse characteristics of the person e.g. a short temper or tendency for dishonesty.