
Wharton Research Exposes the Damaging Cost of Hiring Externally
Wharton research shows that external hires cost 18 to 20 percent more than those promoted from within. They also have significantly lower performance for the first two years. I was skipped over four times in my career for promotion, when the company hired from the outside. Each time I ended up leaving the company and so did most of the other internal applicants. One of those companies was sold to its biggest competitor, one is now less than half its previous size, and one declared bankruptcy.