There are significant differences between the two, for both the employer and the employee. In terms of economic theory, you’d say that staying within “the firm

There are significant differences between the two, for both the employer and the employee. In terms of economic theory, you’d say that staying within “the firm” (Coase) saves both of them a lot in transaction costs. In normal terms — the employee spent time and money finding the previous job and spent time learning how to exist inside that company. Instead of immediately needing to discard and repay those costs - they can “hit the ground running” in a role that is more suited to them. And so on. To overlook all of the advantages here would be very cynical.