To an extent. As soon as you consider externals for a role though the merit/track record approach falls apart because of the information disparity.

Its usually better to hire the internal person who you know can do a good job, than to hire an external who looks twice as impressive on paper. Yet we often do the opposite.

This is why unions and their seniority based system never caught on in tech.

Your parent did not describe promotions-as-reward-for-loyalty.

Merit/track-record is a key metric, but not the only requirement. Interpersonal skills, future plans (loyalty, career track, etc), attitude, potential...

THIS!

Tenure isn't worth zero, but it's not a "guarantee for greater responsibility and compensation".