Effects
Usually when a vacancy occurs the bulk of the people who fill the position(s) come from the inside the internal labor market rather than hiring someone new. The individuals being moved and or promoted to a new job/position often gain a higher salary of more benefits which has an important impact on the organization. Individuals affected by vacancy chains starting in an organization usually are upwardly mobile in small to moderate jumps in status or laterally mobile within their same status; they rarely experience downward mobility. In systems in which they operate, vacancy chains have a strong influence upon organizational demographics. Such factors as length of service distributions for individuals within the organization, rates of advancement within the system, the age distribution of individuals within particular strata, cohort effects for mobility within the system, and waiting times for advancement. Several researchers have used vacancy chain studies to investigate equal opportunity of access by different groups to mobility opportunities.
The number and initial strata of the vacancy chains created influence the career possibilities of the individuals in the internal labor market and those about to enter. The more chains initiated at higher levels, the more mobility opportunities for individuals throughout the system, as the chains move downward, and the greater the speed with which individuals advance to high status or large units and positions. On the other hand, if chains are mostly initiated at lower levels, individuals already in high status positions will see their careers plateau while only those at lower levels will move comparatively quickly before they reach a career bottleneck caused by the lack of opportunities at higher levels.
Read more about this topic: Vacancy Chain
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