Paying more to get less: The cost of external hiring – The Globe and Mail

Many employees have been in the position of applying for an internal position, only to see the job go to someone from outside the company. But the latest research by a management professor at the Wharton School at the University of Pennsylvania could add insult to injury.Matthew Bidwell has found that although outside hires receive a significantly lower performance evaluation in the first two years of their new job compared with internal workers who are promoted into similar jobs, they still earn considerably more, sometimes as much as 20 per cent more than internal hires in similar positions.

Source: Paying more to get less: The cost of external hiring – The Globe and Mail

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