Choice Between Promotion and Hiring by Russian Companies

Today, the level of labor mobility can affect how quickly the economy is able to adapt to technological changes, how quickly competitive advantages are used and how innovative industries are developing. However, labor mobility can be analyzed from different angles: from the side of workers - objects of movement between workplaces or from the side of employers - bearers of demand for labor. This study analyzes the impact of various determinants on a company’s choice between internal promotion or external hiring. To conduct a study and answer these questions, the work uses data from a survey of employers conducted by order of the Higher School of Economics, for 2016-2019, based on which a binary probit model is built. Also, the paper investigates the assessment of the influence of various factors on the time of filling a vacancy for various categories of employees. Based on the results of probit regression, we can conclude that companies with the following characteristics are more inclined to promote internal employees: functioning in the mining industry; the predominance of state capital and mixed ownership; location in cities from 100 thousand to 1 million people; young age of the company; large size of the enterprise; implementation of innovations; multi-shift working regime and a large proportion of fixed-term employees. Regarding the evaluation of the time for filling a vacancy, the results showed that such characteristics of the enterprise as its location in cities with population over one million people, the small and large size of the organization, the average financial position, staff training, the difficulties in hiring due to economic crisis and the use of mixed search channels for employees, on average, increases the time for organizations to fill a vacancy.