Merits of internal sources of recruitment:
(a) Employees are motivated as promotion at a higher level may lead to a chain of promotions at lower levels in the organisation.
(b) Internal sources simplify the process of selection as the candidates are already known to the organisation.
(c) People recruited from within the organisation do not need induction training as the employees are already familiar with the organisation.
(d) These sources help in adjustment of surplus staff in those departments where there is shortage of staff.
(e) Filling of jobs internally is economical as compared to external sources of recruitment.