When a firm focuses on hiring only for entry-level jobs and tends to promote from within the firm,then the firm is said to:
A)use the benchmark competitive labor market.
B)have an internal labor market.
C)hire based on human capital.
D)use compensating differentials.

Question

Quizplus · Accepted Answer

An internal labor market is a hiring and promotion approach that emphasizes filling entry-level positions from within the company and promoting employees who show potential. Instead of relying on external recruitment and hiring processes, the company focuses on developing and advancing its existing employees. This approach can help to create a sense of loyalty and commitment among employees, as well as ensure that the company has a pool of highly skilled and knowledgeable workers to draw from.

When a Firm Focuses on Hiring Only for Entry-Level Jobs