While I broadly agree with your point, rewarding seniority is at odds with rewarding people based on how good they are at their jobs, from the perspective of incentives. The two are not always correlated and this is often why some companies hire externally instead of promoting from within.
That said, companies are often wrong to hire externally as they misattribute their problems to their employees instead of to their own leadership. It is easier for them to blame others instead of themselves.
That said, companies are often wrong to hire externally as they misattribute their problems to their employees instead of to their own leadership. It is easier for them to blame others instead of themselves.