Benefits of external sources of recruitment are as follows:
(i) Qualified personnel: Through external sources, skilled and knowledgeable people can be recruited. There should be a flow of freshly skilled people in the organisation for getting a mixture of experienced people and fresh minds.

(ii) Wider choice: External source has a wider choice in comparison to the internal source. Internally only the existing employees can be taken for the vacant job but externally there are many candidates waiting for the job and thus many would apply.
(iii) Competition booster: When the company employs people from external sources then the existing staff may feel like competing with the new ones to maintain their position. This will improve healthy competition in the firm.
(iv) Exploit market condition: With an organisation experiencing changes in demand or supply in the market, external sources can enable an organisation to exploit labour market conditions to save on labour costs.