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Do Companies Overvalue External Talent?

By: Boris Groysberg and Robin Abrahams
  • Format:Print
  • | Language:English
  • | Pages:6
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Abstract

When looking to fill a position above entry level, companies have two choices: transfer/promote an internal candidate, or hire from the outside. Anecdote and research alike show that external hires are usually offered a higher starting salary than internal candidates.

Keywords

Compensation and Benefits; Selection and Staffing; Job Offer

Citation

Groysberg, Boris, and Robin Abrahams. "Do Companies Overvalue External Talent?" Harvard Business School Background Note 424-068, June 2024.

About The Author

Boris Groysberg

Organizational Behavior
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