Which Companies Promote Most From Within?
The share of internal promotions for senior employees is rising in general, but who leads the way?
Every company faces a choice of where to source their management team: from within the company or from outside? The implications of this workforce planning choice are enormous. Leaders that are groomed internally already know the business and can easily fit within the corporate culture. However, leaders from outside often come with more proven track records.
Revelio Labs labor market analytics reveal that the share of senior employees who were internally promoted has evolved over time and risen steeply in the most recent periods.
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Given that companies are moving towards promoting internally, we next look at which companies are leading in this trend. The figure below shows the companies with highest and lowest shares of internal promoted senior positions.
- The share of senior management that were promoted internally has been steadily rising in recent years.
- Target, Caterpillar, and ExxonMobil have surprisingly high rates of internal mobility. As expected, the US AirForce is also among the highest.
- Apple, Google, and AWS are among the top tech companies that are falling behind in promoting internally. In previous newsletters (The War for Talent: Hedge Funds vs Big Tech and These Non-Tech Companies are Starting to Look a lot Like Tech Companies!), we've shown how tech companies face increasing competition from outside the industry for talent.