The phenomena of newly hired engineers receiving salaries higher than longer tenure engineers in an organization is consistent with the concept of internal labor markets.

Question

Quizplus · Accepted Answer

This statement is true. The concept of internal labor markets suggests that companies have a hierarchical system of employee positions and salaries, and that newly hired employees typically enter at the bottom and receive lower salaries than more senior employees. However, there are situations where demand for certain skills or experiences may cause a new hire to be offered a higher salary than an existing employee with more tenure in the same role.

The Phenomena of Newly Hired Engineers Receiving Salaries Higher Than