High-performing employees are quitting at accelerated rates as career advancement opportunities shrink across nearly all industries, according to new research from Workday.
The study found that top performers left companies at increasing rates in 100 per cent of industries this year, compared to 75 per cent of industries last year, the company said. Retail saw the biggest jump with attrition up 64 per cent, followed by healthcare at 28 per cent.
Promotions decline while hiring slows
Career advancement has stalled inside organizations, with promotions down in 10 of 11 industries and internal hiring falling eight per cent, according to Workday. The technology company analyzed data from hundreds of millions of employee transactions across its client base.
More than half of open positions now take over 30 days to fill, while a quarter stretch past 60 days, the research shows. This makes replacing departing high performers increasingly difficult for employers.
“AI may be rewriting the rules of work, but it cannot replace the value of engaged, motivated people,” said Ashley Goldsmith, chief people officer at Workday. “The companies that succeed will retain top talent, create meaningful growth opportunities, and have a clear strategy for human-AI partnership that drives results.”
Employees express concerns about AI strategy
Workers are growing anxious about their companies’ artificial intelligence plans, the study found. Among employee survey comments that mentioned both strategy and AI, 44 per cent were negative, according to Workday.
The disconnect between leadership and front-line employees is slowing organizational change and eroding trust, the company said.
Research methodology
The findings come from Workday’s Global Workforce Report titled “The Hidden Talent Drain: Reinvesting in Employee Growth to Unlock Your AI Advantage.” The research combined company data with surveys of 1,700 business leaders across North America, the UK, France, Germany, Japan, Australia and New Zealand, plus 982 job seekers in North America.
Workday provides human resources and financial management software to more than 11,000 organizations globally, including over 65 per cent of Fortune 500 companies, according to the company.
The research suggests companies must invest in clear career paths and transparent communication about AI strategies to retain their best employees in an increasingly competitive talent market.
