Promoting Mediocrity: Why Employers Don't Always Reward the Best Talent

Find Out Why Companies Go with "Known Talent" Instead of Up-and-Comers

A Matter of Incentive

Overall, this phenomenon is a failure of the market to ferret out and properly reward the best talent, Terviö's research concludes. 

Long-term contracts could lessen the problem for entire industries, because hiring companies could take a risk on a potential new talent without having to worry that their rising star will be stolen away by a competitor. But there is little incentive for individual companies within an industry to switch their approach, Terviö said. 

"There isn’t much that an individual firm can do to avoid this, because the problem is a market failure at a broader level," he said.