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Last Updated on September 10, 2023 by Robert C. Hoopes

Promotions Increase Chances of Employee Departure, Finds ADP Data

In a recent study conducted by payroll processor ADP, it was found that promotions actually increase the likelihood of an employee leaving their job. The data revealed that 29% of workers who were promoted ended up leaving within just a month, compared to only 18% of those who were not promoted.

This surprising statistic suggests that by the time a manager considers someone for a promotion, the employee may already be seeking other opportunities. Research indicates that employee dissatisfaction with pay, responsibilities, and internal communication are common factors that contribute to this trend.

Furthermore, it was discovered that many individuals who depart their jobs after a promotion opt to start their own businesses instead. These individuals believe that they can rely on themselves instead of depending on potentially unreliable employers.

One possible explanation for the high turnover rate after promotions lies in the fact that some promotions are merely in name, without any accompanying raise or additional responsibilities. This can lead to disappointment and dissatisfaction among employees who were expecting more.

Interestingly, the study also found that workers in low-skilled jobs are more likely to leave after receiving a promotion. For them, a promotion serves as a signal of their value and enables them to attract better job opportunities elsewhere.

In light of these findings, it is recommended that companies shift their focus from merely changing job titles to providing employees with the necessary skills and incentives to handle increased responsibilities. By equipping workers in this way, employers can improve job satisfaction and reduce turnover rates.

Overall, these findings serve as a reminder that promotions may not always lead to long-term employee retention. Companies should strive to address the underlying issues that contribute to dissatisfaction and loss of talent, rather than relying solely on promotion-based strategies.