Top talent leave as internal hiring slows and career pathways narrow

Top performers are leaving their jobs at rising rates as promotions stall and career mobility narrows across industries, according to new research from Workday. The report found that promotions declined in 10 of 11 industries in 2024, while internal hiring dropped by 8%. 

The study, based on Workday data and surveys of more than 1,700 business leaders and nearly 1,000 job seekers, warned that high performers are quitting “with increasing alarm”. Attrition rose in about three-quarters of industries, while all sectors reported higher turnover overall. 

The findings underscore a shift in the labor market, where advancement opportunities are scarce even for experienced employees. Workday reported that lack of promotions and limited internal mobility are key drivers of exits, with high performers citing lower engagement and weaker connection to their employers. 

Recruitment has also become more difficult. More than half of open roles now take longer than 30 days to fill, and one in four remain vacant for more than 60 days. For companies already struggling to retain talent, drawn-out hiring processes add further strain. 

Ashley Goldsmith, chief people officer at Workday, said organizations cannot ignore the link between growth opportunities and retention. “AI may be rewriting the rules of work, but it cannot replace the value of engaged, motivated people,” she said in a statement. “The companies that succeed will retain top talent, create meaningful growth opportunities and have a clear strategy for human-AI partnership that drives results.” 

The report also pointed to rising unease over the role of artificial intelligence in the workplace. Nearly half of surveyed employees reported negative perceptions of AI, with concerns ranging from job security to lack of clarity about company strategies. 

Workday’s research found a disconnect between leaders and front-line workers, with executives promoting AI integration while employees voiced anxiety about how it will affect their roles. The gap, the report warned, could erode trust and deepen disengagement. 

Human-centered AI strategies will be crucial, Workday said, urging employers to invest in clearer communication, transparent planning and skills development to reassure workers. 

The challenge of retaining top talent is becoming more acute as businesses face both economic uncertainty and rapid technological change. Workday’s data shows that attrition is not evenly distributed: high performers, who are central to innovation and continuity, are leaving at higher rates than average employees. 

The report suggested that employers need to focus on transparent career pathways, regular communication and investment in development opportunities to counter the trend. Linking career growth to business strategy, particularly in the context of AI adoption, could help rebuild trust and engagement.