And?

It it makes you feel better the alternative can be much worse:

People are promoted to their level of incompetence. Sure she is a terrible manager but she was the best at sales and is most senior. Let's have her check to make sure everyone filled out expense reports instead of selling.

You don't get the knowledge sharing that comes from people moving around. The rival spent a decade of painful trial and error to settle on a new approach, but you have no idea so you are going to reinvent this wheel.

People who do well on open-ended creative tasks are not able to do as they failed to rise above repetitive procedural tasks. Getting started in the mailroom sounds romantic but maybe not the best place to learn tax law.

The tech and corporate and general operational knowledge drifts further and further away from the rest of the industry. Eventually everyone is on ancient IT systems that sap (yes pun intended) efficiency. Parts and software break that it is hard to replace. And eventually the very systems that were meant to make things easier become burdens.

For us humans there really is no alternative to work and thinking is the hardest work of all. You need to consistently reevaluate what the situation calls for and any kinda rigid rule system of promotion and internal training won't perform as well.