External Hires Struggle at First but Surpass Their Home-Grown Colleagues

People who are hired from outside the organization are paid 18% to 20% more than internal candidates who are promoted into similar jobs, says Matthew Bidwell of The Wharton School. External hires receive significantly lower performance evaluations during their first two years on the job and are more likely to quit or get fired, but they eventually learn the ropes and surpass their home-grown colleagues: If they stay beyond two years, they get promoted faster than employees who were hired internally, the research shows.














Source: Harvard Business Review-Today's Management Tip was adapted fromWhy External Hires Get Paid More, and Perform Worse, than Internal Staff.

Nick Kalikajaros 2017