External Hires Cost More and Perform Worse: The Case for Internal Mobility

The recent article, “Why External Hires Get Paid More, and Perform Worse, than Internal Staff,” brilliantly summarises some research that Wharton management professor Matthew Bidwell published in December 2011. Essentially, the research found that external hires are typically paid more (18% to 20%) than internal hires, but tend to perform worse. The premium paid for […]
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