A new report finds top talent are leaving in search of growth as traditional promotion pathways disappear
High-performing talent are leaving their employers in search of career growth, as traditional promotional pathways decline, according to a new report.
Findings from the report by Workday revealed that attrition rates among high performers are up across 100% of industries this year. The most significant year-on-year increases were in:
- Retail (64%)
- Healthcare (28%)
- Professional Services (14%)
"High performers—the people driving your biggest wins—are leaving at a rising rate. Their exit hits harder than losing any other group," the report read.
Promotion recession driving talent out
According to the findings, high performers are increasingly leaving in search of growth, as they feel stuck in organisations where traditional promotion pathways are disappearing.
"The promotion recession is driving a high-performer exodus," the report read.
It found that 10 in 11 industries are in a promotion recession, with only the manufacturing sector logging an increase in promotions year-on-year.
It further found that the proportion of roles filled by existing employees is falling, while external hiring continues to go up.
"According to our research, hiring managers want what's shiny and new: external applicants," the report said.
"Meanwhile, your internal applicants are languishing. This lack of visibility—or trust in your own people—costs your organisation agility, resilience, and retention."
Addressing the promotion recession
Employers should "redefine the career ladder" if they want to retain high performers, according to the report.
"Create career paths that include lateral moves, project-based work, and upskilling opportunities," the report read.
"These programmes allow high performers to gain new skills and exposure, keeping them engaged and positioning them for future leadership roles."
Organisations should also cultivate a culture of challenge and connection, as top performers are driven by challenging work and the opportunity to learn.
"Empower managers to have ongoing conversations about growth, and use your talent data to proactively connect employees to critical projects, cross-functional teams, and mentorship opportunities," the report read.
"This fosters the culture of innovation and collaboration essential for retaining your best people."
