Pitfalls of Promotions: Why Your Star Talent Might Be Heading for the Exit

Promotions are often regarded as the pinnacle of success—a recognition of hard work and dedication. However, a recent study by the ADP Research Institute unveils a surprising twist: while promotions generally lead to happier employees and increased retention, there's a significant risk that your newly promoted talent might be walking out the door sooner than you think.

The Data Dilemma

The ADP Research Institute examined the job histories of over 1.2 million U.S. workers between 2019 and 2022. The findings were eye-opening: 29 percent of individuals quit their jobs within a month after their first promotion, compared to an 18 percent departure rate for those who weren't promoted. The risk is most pronounced during the initial six months of a promotion, gradually narrowing afterward.

The Pandemic Effect

These findings come from research conducted during the pandemic, a time characterized by a volatile job market and increased resignations, known as the "Great Resignation." The surge in attrition can likely be attributed to the post-pandemic reevaluation of life and work.

Why the Exodus After Promotion?

Employees leave post-promotion for various reasons. Some may explore new opportunities attracted by their elevated status, while others might catch the eye of recruiters. The key takeaway here is that promotions, instead of being a beacon for loyalty, can sometimes act as a catalyst for departure.

Solutions for Employers

Despite these challenges, employers can take proactive steps to enhance retention. Implement a clear and true-to-process promotions system, and make sure your promotions are based on merit rather than a retention tactic or salary booster.

First-time managers face the highest risk of departure after a promotion. To counter this, we recommend investment in preparation, a grace period for ramping up, and regular check-ins to show ongoing support.

Promotions, once seen as a foolproof strategy for retaining and motivating employees, come with their own set of challenges. Employers must rethink their approach, ensuring that promotions are based on merit and supported by effective onboarding and ongoing development. The evolving nature of work demands a fresh perspective on internal mobility, paving the way for a more engaged and committed workforce in the long run.