It's a good enough idea.

It gives them opportunities to bullshit about their policy of hiring people with little/no experience, how they promote from within, and how they aren't sticking you in a dead end job.

Even though they'll clearly take the guy with more experience, they'll frequently hire people less qualified who don't know shit to do upper level positions, and you'll find yourself maybe one or two notches up the ladder in 5-10 years.