"Internal source of recruitment is not economical". Justify for or against and give a reason.

Against the statement.

Internal source of recruitment is economical. The reason is that the cost incurred in advertising vacancies, engaging placement agencies, and screening external candidates is completely avoided. No outside references are required to be checked, and the existing employees are already familiar with the policies, rules, and working conditions of the enterprise. There is no need to provide extensive training as the transferred or promoted employees are already experienced. Hence, internal recruitment is rightly considered economical.