training: Enhancement of skills through interactions with a person's peers. Hiring for talent vs. Hiring for experience Hiring for talent: New employees are selected based on their innate ability, interest and motivation towards a certain type of work. Hiring for experience: New employees are selected based on their previous experience in a similar position. Promoting diversity vs. Focusing on 'merit' Promoting diversity: Expanding the scope of a company in terms of individual differences such as race, or religion. Focus on merit: Focusing on the individuals who are most deserving, based on performance. See also Efficiency wage Human capital Internal labor market Notes References Blank, David M., and George J. Stigler, 1957. The Demand and Supply of Scientific Personnel, NBER & UMI. Chapter-preview links. Hutchens, Robert M., 1989. "Seniority, Wages and Productivity: A Turbulent Decade," Journal of Economic Perspectives, 3(4), pp. 49–64. Montgomery, James D., 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review 81(5), pp. 1408–1418. Shapiro, Carl, and Joseph E. Stiglitz, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, 74(3), pp. 433–444.