While hiring, the organization has an internal as well as external pool of employees. The current employees are the internal source for recruitment. When ever a position is vacant, the organization can post the vacancy internally and search for a suitable candidate from the current employees. This is an internal source for candidates. This is also convenient for the organization as it reduces the search time, cost and also serves as a motivator for the employees. External source includes all the people within or sometimes, outsides the country who meet the requirements of the job. When the organizations publish the job advertisements in newspapers and on websites, they are searching for the candidates through external sources, that is outside the organization.
Internal sources means employee are posted through inside recruitment in the organisation ,may be employee referral but external sources may be Newspaper,TV.,etc