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Are you joking? This is a RARITY. In 98% of cases, an employer would rather put someone unqualified in the role, because they have company tenure, over an external, often paying less than market value. This is why SO MANY jobs are fake and companies aren’t actually looking to fill it with an external.
It’s really depends on a lot of factors: the manager, the needs of the role, the budget they have, politics or optics.
Sometimes it’s straight up corporate bs and the external hire is one of their people or someone they know who they’d rather have in that role, other times the company is a meritocracy and the most qualified person gets its.
Historically, it’s cheaper to do it internally, better for morale, can build natural succession pathways and allow for reliable mentorship of junior employees following the same path. Thats if your company supports this.
The reality is it’s very situational and different for each person and company. You can also have a perfect career trajectory with mentorship, a nee manager comes in and messed it all up.
It’s a wake up call to employees that it’s time to move on. But it’s also why no one stays at companies anymore - there’s little upside.
As a person in management, great performance is part of the equation. How one represents the company OUTSIDE of work hours can weigh in also. Great performance at work, and wild posts on social media could get a stellar employee passed over a LOT of things! The other deeper (morale breaking) truth is, if the employee's transfer will cause a major deficit in the their current department, they could get passed over in the name of playing "TEAM!" It's not personal, it's business. :-(
Some companies doesn't support internal mobility even if they say they do. I have worked with many companies who would find external hires when they have some of the best talent in house. I never will understand the reason behind it.
If your face fits, you will go far. That is the way it always has been. If you have opinions, you will not always go far.
I have seen 'favourites' in companies, who get pay, professional training, bonuses, etc...thrown at them, while I sit in HR and get a bare minimum salary rise. This is often the case for HR, unfortunately.
Because we don't always make big bucks for a company, we are not treated well when it comes to big pay increases. Other teams are.