Many companies find that promotion from within the company improves employee morale. Promotions are also cost-effective in that the promoted employees already familiar with the corporate culture and procedures do not need to spend valuable time on basic orientation.
Due to the prevalence of flatter corporate structures, there are fewer levels for employees to reach now as compared to the past. Therefore, it is more common today for workers to move over to a new position than to move up to one. Such transfers allow employees to develop and display new skills and to learn more about the company overall. This is one way of motivating experienced employees to remain in a company with few advancement opportunities.
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