Fundamentals of Human Resource Management 5th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright

Exercise 13

Four in Ten Positions Are Filled with Insiders
In a survey of large, well-known businesses, respondents said over 40% of positions are filled with people who already work for the company and accept a promotion or transfer.
During the recent recession, hiring from within accounted for about half of all positions filled. As companies have begun to grow again, the greater demand for talent is requiring more external recruiting.
Could a growing company fill more than half its open positions with internal recruiting? Why or why not?

Note: "Internal movement" refers to jobs filled from employees currently in the company who are referred by managers or receive promotions or transfers; "all external sources" refers to employees found using sources outside the company such as electronic recruiting from company or job websites, employment agencies, colleges and universities, walk-in applicants, print ads, and referrals.