Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies

Rabii Hakiki

doi:doi:10.11648/j.jhrm.20251304.13

Research Article |

| Peer-Reviewed

Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies

Rabii Hakiki^*

Published in Journal of Human Resource Management (Volume 13, Issue 4)

Received: 27 November 2025 Accepted: 11 December 2025 Published: 31 December 2025

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Abstract

This study investigates how Moroccan organizations manage the balance between internal and external recruitment by focusing on managerial employee’s perceptions of fairness, transparency, and merit-based practices in promotion and internal hiring. Anchored in contemporary human resource management and organizational theory, the research demonstrates that internal recruitment allows organizations to capitalize on firm-specific human capital, strengthen employee commitment, reduce turnover, and promote organizational stability in sectors such as banking, telecommunications, energy, and public administration. However, an excessive reliance on internal mobility may limit cognitive diversity, slow skill renewal, and reinforce informal networks, ultimately constraining adaptability and innovation. These limitations emphasize the strategic role of external recruitment in bringing new competencies and diverse perspectives that foster organizational learning and renewal. The empirical findings are drawn from 40 semi-structured interviews with middle and senior managers in Casablanca and Rabat. Results indicate that favoritism and informally managed networks weaken trust in human resource systems and negatively affect employee engagement. In contrast, transparent procedures, well-defined selection criteria, and ethical leadership significantly enhance perceptions of fairness and legitimacy. The study concludes that hybrid talent management strategies, integrating internal employee development with targeted external hiring, offer the most effective balance between organizational continuity, cost efficiency, and innovation. It contributes to research on internal labor markets and provides practical insights for Moroccan organizations seeking to modernize talent management practices in the context of digital transformation and persistent skill shortages.

Published in	Journal of Human Resource Management (Volume 13, Issue 4)
DOI	10.11648/j.jhrm.20251304.13
Page(s)	126-135
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Internal Hiring, External Recruitment, Talent Management, Employee Perceptions

1. Introduction

The debate surrounding the respective merits of internal and external hiring has gained renewed attention as organizations contend with increasingly volatile labor market conditions, technological disruption, and persistent shortages of critical skills. Contemporary scholarship underscores that recruitment has evolved from a routine administrative task to a strategic mechanism that shapes organizational competitiveness, innovation potential, and long-term talent sustainability

[16]

. Decisions regarding whether to cultivate talent internally or acquire it from external labor markets are therefore central to how firms build capabilities, manage uncertainty, and adapt to rapidly changing environments

[32]

This debate holds particular relevance for Morocco, where firms operate within an economic landscape characterized by accelerated digitalization, the expansion of knowledge intensive industries, and growing integration into global value chains. Persistent structural skill shortages, limited labor mobility, and misalignments between educational systems and employer demands further complicate recruitment decisions

[9]

. Hiring choices thus reflect broader strategic orientations concerning human capital development, organizational agility, and competitive positioning.

Internal hiring provides several well documented advantages. Employees promoted from within tend to exhibit higher organizational commitment, lower turnover, and quicker performance ramp-up due to their accumulated firm specific knowledge and cultural fit

[8]

. Moreover, transparent internal mobility practices strengthen perceptions of fairness and trust are the key drivers of engagement and retention

[32]

. These benefits are particularly pertinent in Moroccan sectors that emphasize stability and relational continuity, such as banking, telecommunications, and public-sector.

However, over-reliance on internal labor markets can limit skill renewal, reduce cognitive diversity, and reinforce informal or politicized practices

[30]

. By contrast, external hiring can introduce novel competencies and stimulate innovation

[33]

, although it may also entail cultural misfit, higher adjustment costs, and compensation disparities

[37]

Consequently, recent scholarship increasingly highlights the value of hybrid recruitment strategies that integrate robust internal talent development with selective external hiring. Such an approach aligns closely with Morocco’s broader objectives of strengthening competitiveness and advancing sustainable economic transformation..

Against this backdrop, the present study adopts a qualitative, interview-based research design to examine how managerial employees in Moroccan organizations perceive the fairness, transparency, and legitimacy of internal hiring criteria, thereby providing empirical insight into the mechanisms through which internal mobility practices are interpreted and experienced.

2. Review of the Management Literature

The discussion surrounding internal versus external hiring has gained renewed importance in contemporary management research, particularly as organizations navigate increasingly turbulent labor markets, skill shortages, and heightened competitive pressures. In Morocco, these concerns are especially salient. Moroccan firms operate within a transforming economic landscape characterized by digitalization, regulatory modernization, sectoral diversification, and the emergence of knowledge intensive industries. Recruitment strategies, whether privileging internal mobility or external search, thus reflect broader strategic debates about human capital development, organizational performance, innovation capacity, and long-term workforce planning. Understanding the rationale, trade-offs, and outcomes associated with these hiring approaches is essential for shaping robust talent management systems aligned with Morocco’s evolving business environment.

2.1. Strategic Relevance of Internal Hiring for Moroccan Organizations

Recent management literature highlights the value of internal hiring as a means of leveraging human capital already embedded within the organization. Internal recruitment capitalizes on employee’s accumulated firm specific knowledge, social capital, and cultural alignment factors that have been shown to significantly reduce onboarding costs and accelerate productivity

[8]

. For Moroccan firms, particularly in sectors such as banking, telecommunications, energy, and public administration, these advantages are amplified due to the complexity of operational systems and the high value placed on institutional continuity.

Employees who advance internally develop unique skills tied to organizational routines and processes. Research on human capital specificity emphasizes that such competencies create strong complementarities with organizational knowledge systems, ultimately enhancing performance and reducing turnover

[24]

. In Morocco, great companies, rely heavily on the internal development of managerial talent because the cost of losing employees with deep institutional knowledge is substantial. This resonates with early insights on turnover consequences

[34]

and remains supported by contemporary studies showing that firms with strong internal labor markets experience higher organizational stability and improved employee cohesion

[31]

Another strategic justification for internal hiring in Moroccan companies lies in the emphasis on long-term employment relationships. Morocco’s corporate culture, especially within family-owned businesses, public-sector enterprises, and large conglomerates values loyalty and continuity. Internal mobility policies help reinforce trust between employees and management, creating a sense of psychological security that positively affects engagement and performance. Recent empirical work shows that internal promotions serve as powerful retention mechanisms, significantly decreasing turnover intentions by signaling organizational commitment to employee development

[6]

Furthermore, internal candidates represent a lower hiring risk because their performance history, strengths, and developmental needs are well known. Theoretical insights into monitoring costs emphasize that organizations reduce uncertainty by selecting from a familiar talent pool

[22]

. This is particularly relevant in high-stakes Moroccan environments, such as public service delivery or customer facing financial institutions where a single poor hiring decision can disrupt operational efficiency or erode customer trust.

2.2. Internal Hiring as a Driver of Motivation and Organizational Commitment

Internal mobility also functions as a potent motivational mechanism within organizations. Promotion tournaments, career ladders, and structured mobility pathways incentivize employees to invest in firm specific skills and long-term performance. Tournament theory continues to inform contemporary research showing that transparent internal promotion systems increase effort and organizational citizenship behavior

[28]

In the Moroccan context, career progression is culturally associated with professional prestige, financial stability, and social recognition. Sectors such as insurance, finance, and telecommunications have developed structured internal mobility frameworks that make advancement visible and attainable.

However, as contemporary research warns, internal tournaments may also generate dysfunctional behaviors. Excessive focus on promotions can lead employees to engage in political behavior, ingratiation, or strategic skill acquisition aimed at signaling promotability rather than improving actual job performance

[4]

. Large promotion-based pay gaps may distort employee incentives

[27]

, and more recent work suggests similar risks in organizations where promotion is the primary source of recognition

[23]

. Moroccan firms occasionally witness such distortions, particularly in hierarchical organizations where advancement is perceived as limited or influenced by personal networks.

To mitigate such risks, contemporary HRM literature emphasizes the need for competency-based promotion criteria, balanced incentive structures, and more transparent evaluation systems

[32]

. For Moroccan companies, implementing such systems can help ensure that internal mobility remains meritocratic rather than symbolic or politically driven.

2.3. Risks and Limitations of Excessive Reliance on Internal Mobility

While internal recruitment yields many benefits, research warns against overdependence on internal talent flows. One major concern is the potential for skill stagnation. Organizations that rely heavily on internal hiring may inadvertently reinforce outdated practices, reduce cognitive diversity, and limit exposure to emerging competencies

[16]

. Moroccan companies, especially traditional or state-affiliated institutions may fall into this pattern when seniority outweighs merit or when internal promotion is seen as an entitlement.

The resulting mismatch between candidate capabilities and job requirements is well documented in the literature on internal labor markets. Internal candidates may be promoted despite insufficient skills simply because they are already embedded within the organization

[3]

. Contemporary empirical studies confirm that such “suboptimal match quality” can negatively impact performance, innovation and adaptability

[37]

This risk is heightened in Morocco’s private sector, where interpersonal networks and loyalty can influence mobility decisions, particularly in family businesses or small firms where informality is common. Excessive internal mobility may also create echo chambers, limiting strategic renewal.

Thus, scholars increasingly advocate a hybrid approach that combines internal mobility with selective external hiring to ensure skill renewal, diversity of thought, and agility

[25]

2.4. Strategic Value of External Recruitment in the Moroccan Economy

External recruitment opens the door to wider talent pools, fresh skill sets, and innovative perspectives, all of which play a crucial role in driving organizational renewal and strengthening competitiveness. Theoretical frameworks such as dynamic capabilities and knowledge recombination underscore how external hiring can inject new ideas and break path dependencies within firms

[21, 35].

In fast-evolving Moroccan sectors such as fintech, renewable energy, digital services, and export-oriented manufacturing, external recruitment has become crucial. These industries require specialized technical skills, global exposure, and familiarity with international standards. Hiring externally allows Moroccan firms to access talent trained abroad or in multinational environments, thereby accelerating knowledge transfer and aligning organizational practices with global trends.

External hires also challenge entrenched norms and stimulate organizational change. Research shows that employees recruited from outside bring unique cognitive frameworks and problem-solving approaches, contributing to innovation and strategic renewal

[33]

However, external hiring is not without challenges. Organizational socialization literature highlights that cultural misfit, integration difficulties, and misaligned expectations can undermine performance

[1]

. In Moroccan work environments, where cultural norms emphasize hierarchy, relational trust, and social cohesion, external hires may require longer adjustment periods.

Moreover, studies show that external hires often receive higher compensation yet perform no better (and sometimes worse) in the short term compared to internal candidates

[7]

. This creates potential internal equity issues and may lead to perceptions of favoritism, particularly in Moroccan firms where seniority remains a strong basis for legitimacy.

2.5. External Hiring as a Corrective Mechanism in Stagnant Internal Labor Markets

Despite these challenges, external hiring can act as a counterbalance to stagnation or favoritism in internal promotion systems. Research suggests that the credible threat of external recruitment motivates employees to maintain performance and discourages complacency

[14]

In Morocco, small and medium sized family businesses sometimes face issues of internal favoritism, nepotism, or rigid hierarchies that reduce fair competition for promotions. External hiring introduces market discipline, encouraging internal employees to upskill and remain competitive. Recent studies on family enterprises support this argument, showing that selective external hiring enhances governance quality and professionalization

[26]

2.6. Prevalence and Determinants of Internal Versus External Hiring in Morocco

Empirical research on Moroccan HR practices remains limited but is gradually expanding. A 2022 study by the Moroccan Association of Human Resources (AGEF) in partnership with Groupe ISCAE revealed that internal mobility is preferred for middle management positions in approximately 60% of surveyed firms. External hiring, meanwhile, dominates entry-level recruitment and positions requiring scarce technical skills.

This aligns with global trends: organizations tend to rely on internal mobility for roles requiring organizational knowledge and on external hiring for specialized or innovative roles

[24]

. Moroccan companies in high-turnover sectors such as retail, tourism, and hospitality rely more heavily on external recruitment for operational roles, while those in banking, utilities, and public administration maintain strong internal labor markets.

Regional differences also influence hiring strategies. Firms in Casablanca and Rabat exhibit more hybrid approaches due to their exposure to international markets and access to diverse labor pools. Tangier-based industrial firms similarly recruit externally for engineers and supervisors due to skill shortages in advanced manufacturing.

2.7. Cost Considerations and CompensationDynamics

A key factor explaining Moroccan organizations’ reliance on internal hiring is cost efficiency. Hiring internally reduces expenditures associated with advertising, assessment, onboarding, and initial training. Research confirms that internal hires typically require less ramp-up time and generate quicker returns on investment

[24]

Additionally, compensation dynamics differ significantly between internal and external hires. Studies consistently show that external candidates negotiate higher salaries due to market competition and mobility costs

[5]

. Internal candidates generally accept smaller wage increases for promotions, which contributes to salary mass control.

The risk of failure is also higher for external hires, particularly in leadership positions. Research indicates that senior leaders recruited externally exhibit higher turnover risks, lower initial performance, and greater integration challenges compared to those promoted internally

[38]

. Given the emphasis on loyalty and long-term stability in Moroccan organizational culture, these risks reinforce preferences for internal leadership succession.

2.8. Integrating Internal and External Hiring: A Strategic Imperative for Moroccan Firms

Contemporary human resources management scholarship increasingly views internal and external hiring not as opposing strategies but as complementary mechanisms that must be balanced to optimize organizational performance. Effective talent systems integrate robust internal development pipelines with targeted external recruitment to address skill gaps, encourage innovation, and maintain organizational adaptability

[17]

For Moroccan firms, the challenge lies in aligning these strategies with local cultural norms while meeting global competitiveness standards. Leading organizations in Moroccosuch as those in finance, IT, pharmaceuticals, and advanced manufacturing, are moving toward such hybrid systems. They invest in learning and development, leadership academies, and internal mobility platforms, while simultaneously engaging in strategic external recruitment for digital roles, engineering expertise, and innovation-oriented leadership.

Ultimately, the most successful Moroccan organizations will be those that build internal labor markets characterized by transparency, meritocracy, and continuous development, while selectively using external hiring to enrich capabilities and challenge organizational. As Morocco pursues its ambition to position itself as a regional economic hub, particularly in Africa, the evolution of talent management practices will be central to sustaining growth, innovation, and global integration.

3. Method

The aim of this study is to investigate how employees in Moroccan organizations perceive the criteria used in internal hiring and promotion decisions. Internal recruitment is widely recognized as a cornerstone of talent management and career development, influencing motivation, retention, and perceptions of organizational justice

[26]

. However, employee’s interpretations of the fairness, transparency, and relevance of selection criteria, whether they stem from merit, seniority, or subjective elements such as favoritism or interpersonal networks, play a central role in shaping trust in HR systems

[19]

. In contexts where informal practices and relational dynamics influence career advancement, such as in parts of North Africa, understanding how employees evaluate these criteria becomes crucial for assessing alignment between formal HR policies and employee expectations. This research therefore examines whether internal mobility is perceived as objective and meritocratic or shaped by organizational politics, and how these perceptions affect morale, retention, and organizational performance.

3.1. Sampling Strategy

A purposive sampling strategy was adopted to ensure the inclusion of participants with substantial experience with internal mobility practices. Purposive sampling is recommended in qualitative HR research when the goal is to access “information-rich cases” capable of shedding light on organizational processes

[31]

Recruitment channels and response rates

Participants were approached through two recruitment channels:

1) LinkedIn outreach targeting managerial profiles in the selected sectors,

2) Internal referrals from HR departments in participating organizations.

Out of 68 individuals contacted, 40 agreed to participate, 18 declined, and 10 did not respond, resulting in a response rate of 59% and a decline rate of 26%.

Sample composition

The final sample consisted of 40 managerial-level employees drawn from three major sectors of the Moroccan private economy with well-developed internal mobility systems:

1) Banking and financial services

2) Telecommunications

3) Manufacturing and industry

Participants worked in Casablanca and Rabat, Morocco’s main economic hubs. Organizational size ranged from 250 to over 1000 employees, enabling comparison across different HR architectures.

The table below summarizes the demographic characteristics of the 40 managerial-level participants included in this study:

Table 1. Demographic and Professional Characteristics of the Sample.

Variable	Categories	Number	%
Sector	Banking & Financial Services	14	35%
	Telecommunications	12	30%
	Manufacturing & Industry	14	35%
Organization Size	250-499 employees	10	25%
	500-999 employees	13	32,5%
	1000+ employees	17	42,5%
Role Level	Lower management	9	22,5%
	Middle management	23	57,5%
	Senior management	8	20%
Gender	Female	18	45%
Gender	Male	22	55%
Years of Experience	5-9 years	11	27,5%
	10-14 years	16	40%
	15+ years	13	32,5%
Total participants		40	100%

This sampling approach ensured sectoral diversity while remaining aligned with areas where structured internal mobility is common

[30]

3.2. Data Collection and Interview Guide

A qualitative, semi-structured interview approach was used to collect in-depth insights into employee perceptions. Semi-structured interviews are widely recommended for studies addressing HR fairness, informal practices, and sensitive organizational dynamics because they combine thematic guidance with flexibility

[12]

Interviews were conducted between March and July 2025, at the participant’s workplace or via videoconference, based on their preference. Each interview lasted 45–60 minutes, was audio-recorded with written informed consent, and fully transcribed verbatim.

The interview guide was designed around four key analytical dimensions, consistent with recent research on internal labor markets and organizational justice

[29]

1) Perceptions of internal recruitment processes (clarity, accessibility, communication of opportunities).

2) Evaluation of selection criteria (performance, merit, seniority, skills, certifications, networks).

3) Experiences with internal promotion (applications, barriers, decision-making transparency).

4) Perceived fairness, legitimacy, and trust in HR (alignment between formal rules and actual practices).

Open-ended prompts encouraged participants to provide concrete examples and reflect on personal experiences.

3.3. Theoretical Saturation

Theoretical saturation is the point at which new interviews no longer yield novel insights was reached after approximately 35 interviews, consistent with qualitative research standards emphasizing saturation over sample size (Hennink & Kaiser, 2022).

Saturation was assessed through:

1) a fieldwork journal, documenting thematic recurrences, emergent ideas, and reflexive observations,

2) constant comparative analysis, which indicated growing redundancy in themes such as merit-based promotion, perceptions of favoritism, and internal networks.

The remaining five interviews served to validate the saturated categories and refine conceptual distinctions.

3.4. Data Analysis and Coding Procedure

Data analysis followed a hybrid thematic coding approach, combining inductive emergence of themes with deductive categories derived from human resources management and organizational justice literature

[10]

. NVivo 14 software was used to support systematic coding, classification, and data retrieval. The analytical procedure unfolded in four stages:

1) Open coding Line-by-line coding produced initial codes such as “favoritism,” “unclear procedures,“seniority,” “merit/performance,” and “informal networks.”

2) Axial coding Codes were grouped into broader categories (e.g., “objective criteria,” “subjective criteria,“structural opacity,” “network-based advancement”).

3) Selective coding Integration of categories led to core analytical themes such as “perceived fairness, “legitimacy of criteria,” and “trust in HR decision-making.”

4) Interpretive synthesis Themes were linked to organizational outcomes such as motivation, engagement, and retention.

The table below summarizes the key themes, code frequencies, and representative quotes from the analysis:

Table 2. Key Themes, Code Frequencies, and Illustrative Quotes on Internal Promotion Perceptions.

Theme	Code Frequency (n=40)	Representative Codes	Illustrative Participant Quote
1. Perceived Lack of Transprency in internal Hiring	31	Lack of information opaque decisions, closed processes	"On annonce rarement les postes ouverts. On apprend qu'un collègue a été promu sans que personne n'ait eu la possibilité de postuler."
2. Infuence of Favoritism and Informal Networks	28	Favoritism, personal ties, wasta, internal polities	"dans notre service, tout le monde sait que les promotions dépendent surtout des relations. Même si tu travailles bien, ça ne suffit pas."
3. Merit and Performance as Conditional Criteria	26	Performance, evaluations, competencies, skills	"Je pense que la performance compte, mais seulement quand elle concorde avec ce que veut la hiérarchie"
4. Seniority and Loyalty as Implicit Determinants	19	Loyalty culture, symbolic recognition	"il y'a toujours une idée que l'ancienneté doit être récompensé, même si un autre collègue est plus compétent"
5. Trust and legitimacy of HR Processes	22	HR credibility, fairness, perceptions, procedural justice	"On a parfois l'impression que les règles existent, mais qu'elles ne sont pas suivies de manière cohérente."
6. Impact on Motivation, Engagement, and Retention	24	Morale, turnover interactions, engagement	"Quand tu vois que les promotions ne sont pas justes, tu perds la motivation et tu commences à chercher ailleurs"

This table highlights the prevalence of core issues in internal mobility, transparency, favoritism, merit and performance, seniority, trust in HR, and impacts on motivation and retention, while the illustrative quotes provide concrete evidence of participants, experiences, enhancing the transparency and interpretive validity of the findings.

3.5. Illustrative Coded Verbatims

Code: Favoritism / Networks

«Dans notre service, tout le monde sait que les promotions dépendent surtout des relations. Même si tu travailles bien, ça ne suffit pas.»

Code: Lack of transparency

«On annonce rarement les postes ouverts. On apprend qu’un collègue a été promu sans que personne n’ait eu la possibilité de postuler.»

Code: Merit and performance

«Je pense que la performance compte, mais seulement quand elle concorde avec ce que veut la hiérarchie.»

3.6. Reliability Measures

To strengthen coding reliability and transparency:

20% of transcripts (8 interviews) were double coded independently by a second researcher.

Cohen’s Kappa (κ) was used to evaluate inter-coder agreement, yielding κ = 0.78, which indicates substantial agreement

[29]

All discrepancies were reviewed jointly, contributing to refinement of the coding grid and ensuring consistency.

3.7. Ethical Consideration

The study complied with established international standards for ethical qualitative research

[36]

Written informed consent was obtained before each interview, detailing the study’s purpose, voluntary participation, and withdrawal rights.

Anonymization procedures were applied at the transcription stage; names, organizational identifiers, and sensitive details were replaced with pseudonyms.

Secure data storage: Audio files and transcripts were stored on an encrypted server accessible only to the research team and will be deleted after five years.

3.8. Biases, Limitations, and Validity Measures

Several limitations and potential biases must be acknowledged:

Social desirability bias: Participants may have moderated criticism of management.

Interviewer effect: The researcher’s presence or perceived institutional affiliation may have shaped responses.

Mitigation Strategies

Triangulation

Cross-sector comparison of interview data,

Verification of themes using HR policy documents (when available),

Integration of regional and organizational size contrasts.

Member-checking

To enhance construct validity a summary of preliminary findings was shared with six participants, who confirmed the accuracy of the interpretations and offered clarifications

[36]

4. Results and Discussion

The analysis reveals a set of interrelated constraints, incentives, and action opportunities shaping employee perceptions of internal promotion in the studied Moroccan firms. These mechanisms operate through a combination of push factors that discourage trust in the system and pull factors that reinforce alternative, often informal, pathways to career advancement.

4.1. Constraints Shaping Perceptions of Fairness

1) Perceived dominance of informal networks (push factor): A large majority of participants (77%) perceived the internal promotion process as strongly influenced by informal networks and personal relationships, rather than formal meritocratic criteria. Employees repeatedly emphasized that “who you know” often outweighs “what you achieve.”

“Promotion depends on personal closeness, not performance.” (E14) “You advance by being in the right circle.” (S1).

These perceived constraints undermine the credibility of internal labor markets, contradicting the principles of transparent internal mobility

[24]

2) Ethical concerns and favoritism practices (push factor): Several respondents described ethically questionable behaviors influencing promotion outcomes, including private socializing, personal favors, or family, like relationships with senior figures.

“Some decisions are made outside the office, in private settings.” (D3).

Such accounts illustrate how social capital, when unchecked, can generate inequitable outcomes

[13]

. These mechanisms create a sense of systemic unfairness and fuel cynicism toward HR processes.

3) Effects on morale, trust, and organizational cohesion: The prevalence of perceived favoritism contributes to a deteriorated internal climate. Employees reported demotivation, resentment, and disengagement.

“People who work hard eventually stop caring.” (E9).

This aligns with organizational justice theory, which predicts severe negative effects when employees perceive procedures as biased

[18]

4.2. Incentives and Behavioral Responses

1) Withdrawal from internal competition (push factor)

Feeling disadvantaged, some employees disengage from internal promotion opportunities, viewing them as predetermined.

“Why apply if the result is known in advance?” (S7).

This constitutes a reduction in action opportunities: employees no longer invest in skill development or career planning.

2) Strategic networking as a survival tactic (pull factor)

Conversely, some employees respond by investing in relationships with decision-makers.

“You learn quickly that networking is part of the job.” (E4).

Here, informal networking becomes a pull factor, incentivizing behavior that reinforces the very system employees criticize.

3) Turnover intentions and external mobility (push factor)

Employees who feel excluded from these networks are more likely to consider leaving the organization.

“I’m looking elsewhere because I want a career based on merit.” (E21).

This confirms research showing that opaque internal labor markets fuel turnover

[15]

4.3. Deviant Cases: Experiences of Merit-based Promotion

A minority (23%) described positive experiences with internal recruitment, characterized by structured evaluations, transparency, and competency-based decisions.

“In my department, the criteria are clear and applied consistently.” (S12).

These deviant cases highlight organizational variation, suggesting that fairness is achievable when formal procedures are robust. Their existence challenges deterministic interpretations and points to the importance of local managerial culture and ethical leadership

[11]

Causal Model Synthesis

Constraints (informal networks, unethical closeness, discretion) → Push factors (cynicism, disengagement, turnover) → Reduced opportunities for merit-based action

Incentives (networking rewards, perceived advantages of informal ties) → Pull factors (strategic relational behavior, compliance with informal norms) → Reinforcement of non-meritocratic mechanisms

This cycle reflects the reproduction of informal internal labor markets, overshadowing formal HR systems.

4.4. Theoretical Integration and Propositions

The following propositions synthesize the study’s theoretical insights and illustrate how promotion practices shape employee perceptions and organizational outcomes. They show that weak evaluation structures heighten informal influences and foster perceptions of unfairness that undermine trust. At the same time, ethical leadership and transparent competency frameworks can counter these risks. Together, the propositions clarify key drivers of fairness and credibility in internal labor markets:

1) Proposition 1: Informal social capital replaces formal merit criteria when evaluation systems lack structure

[2]

2) Proposition 2: Perceived favoritism reduces trust in internal labor markets and increases turnover intentions

[18]

3) Proposition 3: Ethical leadership moderates the negative effects of managerial discretion in promotion decisions

[11]

4) Proposition 4: Transparent competency frameworks restore credibility and reduce reliance on informal networks

[20]

4.5. Practical Implications and Governance Mechanisms

To strengthen the integrity and fairness of promotion processes, organizations must adopt a set of complementary governance mechanisms that enhance transparency, reduce bias, and limit undue influence. The following sections outline three key levers for achieving these goals: standardizing evaluation procedures, establishing independent oversight structures, and minimizing the impact of informal networks. Together, these practices create a more credible and equitable internal labor market:

1) Standardize Evaluations to Limit Bias: To reduce bias and increase fairness in promotion decisions, organizations should implement structured scoring matrices, integrate 360° feedback, and require written justification for every decision. These measures ensure that evaluators rely on consistent, transparent criteria rather than subjective impressions. In addition, systematic audits help verify the integrity of the process, promoting consistency and enabling early detection of irregularities

[32]

2) Establish Oversight Bodies: strengthening governance mechanisms is essential for maintaining procedural fairness. Promotion review committees can provide independent oversight, ensuring that decisions are scrutinized and aligned with established policies. Complementing this, confidential whistleblowing channels offer employees a safe means of reporting suspected irregularities or unethical practices, thereby reinforcing accountability within the internal labor market

[23]

3) Reduce the Influence of Informal Networks: Mitigating the impact of informal networks requires targeted cultural and structural interventions. Ethics training and clear conflict-of-interest rules help managers recognize and avoid biases arising from personal relationships. At the same time, equal-access mentoring and cross-department visibility programs expand opportunities for all employees, decreasing reliance on informal ties and fostering a more transparent and equitable environment.

5. Conclusion

This study shows that internal promotion practices in Moroccan organizations are marked by a persistent tension between formal meritocratic systems and informal relational influences. Although structured procedures are formally in place, employees often perceive promotion decisions as shaped by personal networks, favoritism, and managerial discretion. These perceptions weaken trust in HR processes and erode organizational commitment. However, the existence of departments that apply transparent, competency-based practices illustrates that fair internal labor markets are attainable when strong evaluation systems and ethical leadership are present. Analytically, the study demonstrates how insufficient structural safeguards allow informal social capital to dominate, prompting employees to disengage from merit-based pathways and increasingly depend on relational strategies for advancement. This dynamic clarifies the organizational conditions that either support or undermine trust, fairness, and the credibility of internal mobility.

Several limitations should be noted. Although sampling was conducted with care, the findings rely on self-reported perceptions, which may be influenced by social desirability or subjective interpretations rather than objective organizational realities. The study is also centered on urban firms in Casablanca and Rabat, which limits the transferability of results to smaller regions or the public sector. While managerial views were included, future research could broaden the analysis by comparing the perspectives of HR practitioners, line managers, and employees more systematically.

The implications for HR managers in Morocco are both practical and pressing. Enhancing transparency and applying structured, well-documented evaluation methods are essential to counter perceptions of favoritism and reinforce the legitimacy of promotion systems. Establishing independent review committees and secure whistleblowing mechanisms can strengthen accountability and mitigate ethical risks. Moreover, initiatives that broaden access to development opportunities, such as equitable mentoring programs, cross-functional exposure, and ethical leadership training can reduce reliance on informal networks. By adopting these governance tools, HR leaders can build employee trust, lower turnover intentions, and align internal mobility practices with the evolving needs of Moroccan organizations.

Abbreviations

HR	Human Resources
AGEF	Association Nationale des Gestionnaires et Formateurs des Ressources Humaines

Author Contributions

Rabii Hakiki is the sole author. The author read and approved the final manuscript.

Conflicts of Interest

The author declares no conflicts of interest.

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Hakiki, R. (2025). Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies. Journal of Human Resource Management, 13(4), 126-135. https://doi.org/10.11648/j.jhrm.20251304.13

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Hakiki, R. Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies. J. Hum. Resour. Manag. 2025, 13(4), 126-135. doi: 10.11648/j.jhrm.20251304.13

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Hakiki R. Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies. J Hum Resour Manag. 2025;13(4):126-135. doi: 10.11648/j.jhrm.20251304.13

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@article{10.11648/j.jhrm.20251304.13,
  author = {Rabii Hakiki},
  title = {Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies},
  journal = {Journal of Human Resource Management},
  volume = {13},
  number = {4},
  pages = {126-135},
  doi = {10.11648/j.jhrm.20251304.13},
  url = {https://doi.org/10.11648/j.jhrm.20251304.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jhrm.20251304.13},
  abstract = {This study investigates how Moroccan organizations manage the balance between internal and external recruitment by focusing on managerial employee’s perceptions of fairness, transparency, and merit-based practices in promotion and internal hiring. Anchored in contemporary human resource management and organizational theory, the research demonstrates that internal recruitment allows organizations to capitalize on firm-specific human capital, strengthen employee commitment, reduce turnover, and promote organizational stability in sectors such as banking, telecommunications, energy, and public administration. However, an excessive reliance on internal mobility may limit cognitive diversity, slow skill renewal, and reinforce informal networks, ultimately constraining adaptability and innovation. These limitations emphasize the strategic role of external recruitment in bringing new competencies and diverse perspectives that foster organizational learning and renewal. The empirical findings are drawn from 40 semi-structured interviews with middle and senior managers in Casablanca and Rabat. Results indicate that favoritism and informally managed networks weaken trust in human resource systems and negatively affect employee engagement. In contrast, transparent procedures, well-defined selection criteria, and ethical leadership significantly enhance perceptions of fairness and legitimacy. The study concludes that hybrid talent management strategies, integrating internal employee development with targeted external hiring, offer the most effective balance between organizational continuity, cost efficiency, and innovation. It contributes to research on internal labor markets and provides practical insights for Moroccan organizations seeking to modernize talent management practices in the context of digital transformation and persistent skill shortages.},
 year = {2025}
}

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TY  - JOUR
T1  - Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies
AU  - Rabii Hakiki
Y1  - 2025/12/31
PY  - 2025
N1  - https://doi.org/10.11648/j.jhrm.20251304.13
DO  - 10.11648/j.jhrm.20251304.13
T2  - Journal of Human Resource Management
JF  - Journal of Human Resource Management
JO  - Journal of Human Resource Management
SP  - 126
EP  - 135
PB  - Science Publishing Group
SN  - 2331-0715
UR  - https://doi.org/10.11648/j.jhrm.20251304.13
AB  - This study investigates how Moroccan organizations manage the balance between internal and external recruitment by focusing on managerial employee’s perceptions of fairness, transparency, and merit-based practices in promotion and internal hiring. Anchored in contemporary human resource management and organizational theory, the research demonstrates that internal recruitment allows organizations to capitalize on firm-specific human capital, strengthen employee commitment, reduce turnover, and promote organizational stability in sectors such as banking, telecommunications, energy, and public administration. However, an excessive reliance on internal mobility may limit cognitive diversity, slow skill renewal, and reinforce informal networks, ultimately constraining adaptability and innovation. These limitations emphasize the strategic role of external recruitment in bringing new competencies and diverse perspectives that foster organizational learning and renewal. The empirical findings are drawn from 40 semi-structured interviews with middle and senior managers in Casablanca and Rabat. Results indicate that favoritism and informally managed networks weaken trust in human resource systems and negatively affect employee engagement. In contrast, transparent procedures, well-defined selection criteria, and ethical leadership significantly enhance perceptions of fairness and legitimacy. The study concludes that hybrid talent management strategies, integrating internal employee development with targeted external hiring, offer the most effective balance between organizational continuity, cost efficiency, and innovation. It contributes to research on internal labor markets and provides practical insights for Moroccan organizations seeking to modernize talent management practices in the context of digital transformation and persistent skill shortages.
VL  - 13
IS  - 4
ER  -

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Rabii Hakiki

Faculty of Legal, Economic and Social Sciences of Ain Sebaa, Hassan II University of Casablanca, Casablanca, Morocco

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http://orcid.org/0009-0005-6730-1371

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Hakiki, R. (2025). Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies. Journal of Human Resource Management, 13(4), 126-135. https://doi.org/10.11648/j.jhrm.20251304.13

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Hakiki, R. Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies. J. Hum. Resour. Manag. 2025, 13(4), 126-135. doi: 10.11648/j.jhrm.20251304.13

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Hakiki R. Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies. J Hum Resour Manag. 2025;13(4):126-135. doi: 10.11648/j.jhrm.20251304.13

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@article{10.11648/j.jhrm.20251304.13,
  author = {Rabii Hakiki},
  title = {Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies},
  journal = {Journal of Human Resource Management},
  volume = {13},
  number = {4},
  pages = {126-135},
  doi = {10.11648/j.jhrm.20251304.13},
  url = {https://doi.org/10.11648/j.jhrm.20251304.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jhrm.20251304.13},
  abstract = {This study investigates how Moroccan organizations manage the balance between internal and external recruitment by focusing on managerial employee’s perceptions of fairness, transparency, and merit-based practices in promotion and internal hiring. Anchored in contemporary human resource management and organizational theory, the research demonstrates that internal recruitment allows organizations to capitalize on firm-specific human capital, strengthen employee commitment, reduce turnover, and promote organizational stability in sectors such as banking, telecommunications, energy, and public administration. However, an excessive reliance on internal mobility may limit cognitive diversity, slow skill renewal, and reinforce informal networks, ultimately constraining adaptability and innovation. These limitations emphasize the strategic role of external recruitment in bringing new competencies and diverse perspectives that foster organizational learning and renewal. The empirical findings are drawn from 40 semi-structured interviews with middle and senior managers in Casablanca and Rabat. Results indicate that favoritism and informally managed networks weaken trust in human resource systems and negatively affect employee engagement. In contrast, transparent procedures, well-defined selection criteria, and ethical leadership significantly enhance perceptions of fairness and legitimacy. The study concludes that hybrid talent management strategies, integrating internal employee development with targeted external hiring, offer the most effective balance between organizational continuity, cost efficiency, and innovation. It contributes to research on internal labor markets and provides practical insights for Moroccan organizations seeking to modernize talent management practices in the context of digital transformation and persistent skill shortages.},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Between Loyalty and Merit: The Dynamics of Internal and External Hiring in Moroccan Companies
AU  - Rabii Hakiki
Y1  - 2025/12/31
PY  - 2025
N1  - https://doi.org/10.11648/j.jhrm.20251304.13
DO  - 10.11648/j.jhrm.20251304.13
T2  - Journal of Human Resource Management
JF  - Journal of Human Resource Management
JO  - Journal of Human Resource Management
SP  - 126
EP  - 135
PB  - Science Publishing Group
SN  - 2331-0715
UR  - https://doi.org/10.11648/j.jhrm.20251304.13
AB  - This study investigates how Moroccan organizations manage the balance between internal and external recruitment by focusing on managerial employee’s perceptions of fairness, transparency, and merit-based practices in promotion and internal hiring. Anchored in contemporary human resource management and organizational theory, the research demonstrates that internal recruitment allows organizations to capitalize on firm-specific human capital, strengthen employee commitment, reduce turnover, and promote organizational stability in sectors such as banking, telecommunications, energy, and public administration. However, an excessive reliance on internal mobility may limit cognitive diversity, slow skill renewal, and reinforce informal networks, ultimately constraining adaptability and innovation. These limitations emphasize the strategic role of external recruitment in bringing new competencies and diverse perspectives that foster organizational learning and renewal. The empirical findings are drawn from 40 semi-structured interviews with middle and senior managers in Casablanca and Rabat. Results indicate that favoritism and informally managed networks weaken trust in human resource systems and negatively affect employee engagement. In contrast, transparent procedures, well-defined selection criteria, and ethical leadership significantly enhance perceptions of fairness and legitimacy. The study concludes that hybrid talent management strategies, integrating internal employee development with targeted external hiring, offer the most effective balance between organizational continuity, cost efficiency, and innovation. It contributes to research on internal labor markets and provides practical insights for Moroccan organizations seeking to modernize talent management practices in the context of digital transformation and persistent skill shortages.
VL  - 13
IS  - 4
ER  -

Copy | Download