Limitations of internal sources under Recruitment Process:
(i) Scope is limited: While transferring or promoting the employees, the scope for getting a fresh talent with an increased skill set is reduced. New people in the organisation are necessary to keep the new life in the organisation.
(ii) May reduce enthusiasm: When the employees know that promotions are fixed and there will be a promotion of the employees from time to time, then they will lose motivation and become reluctant to perform better and more efficiently.
(iii) Quantitative limitations: When the organisation tries to fill all the vacancies from internal sources then it becomes difficult because it is not possible to fulfil each requirement from the available talent in the firm especially if the organisation is new.
(iv) Employees lethargic attitude: When there is no fresh talent, nor fresh healthy competition introduced in the organisation, the existing staff becomes lethargic towards work.