New Research Signals a Talent Drain Hiding in Plain Sight

In this article we discuss:

• Your Best People Are Leaving
• The Growth Plateau
• Your AI Strategy Has a Communication Problem
• Reversing the Drain by Reinvesting in People

The headlines can't seem to agree on the state of the job market. Depending on where you look, you'll see a different message just about everywhere.

But when you spend your time in the data, you start to see that the real story is often more complex, and more urgent, than the public narrative suggests.

We've been looking at a trove of data across our products-from recruiting and people analytics to employee sentiment-and what we've found signals a talent crisis hiding in plain sight. It's not about a lack of jobs; it's about a silent talent drain happening inside organizations.

Our latest study, the 2025 Global Workforce report, reveals a triple threat that leaders can't afford to ignore:

1. High performers are walking out the door.

2. Internal career growth has stalled.

3. Employee trust is eroding due to unclear communication around AI.

While leaders are focused on external hiring, their most valuable people are leaving in search of growth they can't find internally. And as AI reshapes every job, people are feeling anxious and disengaged, citing a lack of clear strategy.

The bottom line? An organization's greatest advantage has always been its people.

We've been looking at a trove of data across our products-and what we've found signals a talent crisis hiding in plain sight.

Your Best People Are Leaving

The people who drive your biggest wins-your high performers-are the most likely to leave.

Our data shows that this isn't just a feeling, but a measurable trend. High performer attrition has increased across every industry we track year over year.

In the retail industry, for example, high-performer attrition is up an astonishing 64% year over year, while in healthcare, it has risen by 28%.

When these key individuals leave, the impact extends far beyond a single team, and could cause ripple effects. This exodus is a clear signal that there is a disconnect in the unspoken social contract between employer and employee.

More than half (57%) of job seekers say they feel stuck in today's market-with no clear next step. People need a step up the ladder to look forward to, and when they don't see one, they feel stuck.

With nowhere else to go, and no opportunity in sight, employees feel trapped in their current roles. The landscape of internal mobility provides a clear explanation for this frustration.

The Growth Plateau

High performers crave new challenges; they're motivated by growth, not just promotions.

Yet according to our data, the traditional pathways for advancement are vanishing. In fact, 10 out of 11 industries have seen a decline in internal promotions.

The people who drive your biggest wins-your high performers-are the most likely to leave.

While leaders recognize that career development is crucial for retention, their actions often contradict this recognition. And while historically it was within their power to choose where they distributed growth and opportunity, the reality may have changed.

Our research shows that hiring managers are often eager for what's "shiny and new"-the external candidate-while overlooking the talent they already have. Internal mobility is simply not keeping pace with company growth.

When you're not actively promoting your own people and giving them new opportunities, you're inadvertently encouraging them to satisfy their appetite for growth elsewhere.

And when recruiters aren't leveraging internal data to help source candidates, the data disconnect becomes more obvious.

So how can you reverse this trend?

• Redefine what growth means at your organization. Move beyond rigid career ladders and create opportunities for lateral moves, project-based work (such as gigs), and upskilling. These alternative pathways allow your top talent to gain new skills and exposure without having to leave the company.
• Prioritize internal mobility. Use your people data to gain real-time visibility into the skills and potential of your workforce. Use AI-powered talent marketplaces to proactively match your people with new roles and projects before you even think about looking externally.
• Cultivate a culture of challenge and connection. Empower your managers to have ongoing conversations about career aspirations. Use talent data to connect employees with critical projects, cross-functional teams, and mentorship opportunities. This is how you foster the innovation and collaboration that keep your best people engaged.

Your AI Strategy Has a Communication Problem

As AI becomes a cornerstone of every business, you'd expect employees to be on board with the transformation. But our data tells a different story.

Nearly half of employee comments about AI and strategy carry a negative tone. Employees cite poor communication, uneven adoption, and added pressure.

This lack of AI clarity is eroding confidence and slowing down the very transformation leaders strive to achieve.

Indeed, leaders have a clear vision for AI, how it will drive value, and what they plan to do with the productivity surplus. But without a clear communication about AI strategy and how it will impact roles and team structures, employee trust is suffering.

But it doesn't have to. We've seen firsthand how a human-centric approach to AI can change the narrative from threat to opportunity. At Workday, our own EverydayAI Program focused on making AI adoption a cultural shift, not just a technical one.

We empowered employees to see AI as a pathway to growth, rather than a threat. And the results speak for themselves:

• Within six months, 80% of our employees adopted at least one AI tool.
• High performers were twice as likely to use AI.
• AI adopters were 13% more likely to see a clear career path and 15% more likely to feel aligned to company strategy.

A successful AI strategy is both technical and cultural. Adoption happens when employees understand how AI connects to their role, their growth, and the company's direction.

Reversing the Drain by Reinvesting in People

The global workforce is undergoing a deep recalibration. While external hiring signals might suggest stability, the internal dynamics are more urgent. Growth paths are disappearing, internal mobility is slowing, and confidence in leadership strategy is faltering.

These aren't isolated challenges; they are symptoms of a broader breakdown in trust and alignment. And if left unaddressed, they will limit an organization's ability to retain talent, adapt to change, and sustain performance.

To rebuild that foundation, leaders must:

• Prioritize internal growth by making career development visible, personalized, and tied to evolving business needs.
• Clarify strategic direction with consistent, transparent communication, especially as AI reshapes roles and expectations.
• Use AI intentionally to redirect time, surface opportunities, and give employees a greater sense of agency and alignment.

The future of work isn't just about technology; it's about strengthening the connection between strategy and experience. It means enabling your employees to grow with the business, not around it.

A successful AI strategy is both technical and cultural.

It means designing talent systems that adapt alongside emerging technologies. And it means equipping leaders with the insight and tools to act decisively in a period of rapid change.

What does it look like to truly invest in your people in an AI-driven world? The answer is in the data, and it's calling leaders to reinforce how central employees are to a company's success.

Download our 2025 Global Workforce report to understand how your organization can retain top talent, mobilize your workforce for growth, and reinvest in your people.