Rising talent drain as career growth stalls & AI fears mount
Workday's Global Workforce Report has identified a trend of top performers leaving organisations amid stalled career growth and concerns over unclear artificial intelligence strategies.
The report, entitled "The Hidden Talent Drain: Reinvesting in Employee Growth to Unlock Your AI Advantage," draws upon data from Workday Recruiting, HiredScore, Workday Peakon Employee Voice, and Workday People Analytics. The research is based on hundreds of millions of anonymised transactions and interactions across a wide range of companies and employees globally, as well as two double-blind surveys conducted by Hanover Research in July 2025, involving business leaders and job seekers from various regions including North America, the UK, France, Germany, Japan, Australia, and New Zealand.
Internal talent drain
The report highlights a significant challenge for organisations, revealing that high performers are departing roles at an accelerating rate. Last year, 75% of industries reported increased attrition among high performers, and this trend has extended across 100% of industries this year. The retail and healthcare sectors have experienced the most notable increases, up 64% and 28%, respectively.
Replacing experienced talent has become increasingly difficult. More than half of open roles now take over 30 days to fill, with a quarter remaining vacant for more than 60 days. These timelines demonstrate the increasing challenge organisations face in securing new talent to replace those who leave, further exacerbating the internal talent drain.
Growth opportunities stalling
The research reveals that opportunities for internal career progression have diminished. Promotions have declined in 10 of 11 industries, with internal hiring rates dropping by 8%. This stagnation means fewer options for employees to progress within their current organisations, encouraging high performers to seek advancement opportunities elsewhere.
The report notes that when career growth slows, employee engagement is likely to erode, which can further increase turnover rates. The lack of clear career paths and advancement prospects remains a key driver for departing high performers, representing a silent crisis for many companies.
Anxiety over AI
The data also highlights employee unease regarding the deployment of AI in the workplace. Forty-four percent of employee comments mentioning strategy and AI in internal surveys were negative, indicating a disconnect between leadership and the broader workforce. This sentiment slows change initiatives and undermines trust in organisational strategy.
"AI may be rewriting the rules of work, but it cannot replace the value of engaged, motivated people," said Ashley Goldsmith, Chief People Officer, 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."
The findings suggest that organisations face not only external hiring challenges but also an urgent need to address internal development and communication.
Implications for leadership
The report recommends that organisations prioritise transparent communication, human-centred AI strategies, and clear pathways for career progression in order to retain valuable personnel. Data indicates that these elements are critical in keeping employees engaged and reducing attrition.
"Even as Australia's unemployment sits near historic lows, our research shows organisations are quietly losing their top talent," said Allyson Skene, Vice President, Global Vision and Experience Evangelist at Workday. "High performers are leaving because internal career paths have stalled and AI initiatives are not always translating into meaningful growth opportunities. Organisations that invest in clear career progression, human-centred AI strategies, and transparent communication will not only retain their best people but unlock the full potential of their workforce in this era of change."
The research underscores that retaining talent and fostering career growth are essential for organisations aiming to protect performance, maintain engagement, and navigate the changing dynamics of the workforce. The findings reiterate the importance of aligning employee development with organisational strategy, especially as AI and technological shifts continue to reshape the workplace.
