Current:Home > StocksOne way employers drive workers to quit? Promote them. -VitalWealth Strategies
One way employers drive workers to quit? Promote them.
Rekubit View
Date:2025-04-07 18:15:01
Promotions in the workplace are typically granted to star employees as a reward for their stellar performance. Counterintuitively, however, such recognition can backfire, new research shows.
Although employers tend to elevate high-functioning workers to enhance operations and as a way to retain valuable team members, that can make top performers more desirable to other firms and lead them to jump ship, according to payroll provider ADP's Research Institute.
"One would think that promoting excellent workers would only increase their motivation and commitment, and reduce their risk of leaving," data analyst Ben Hanowell, one of the authors of the report, wrote. "Think again."
"When someone gets their first promotion, the recognition might boost their commitment to their employer for a while. But it might also improve their confidence in their job prospects," he added.
The ADP Research Institute analyzed the job histories of more than 1.2 million U.S. workers between 2019 and 2022 in order to estimate a person's propensity to leave their employer after a promotion. The researchers found that moving up the ranks often leads to workers abandoning their employers. Within one month of their first promotion, 29% of employees had left their jobs, ADP found.
The firm estimates that only 18% of promoted staffers would've left had they not been promoted. The upshot? Elevating workers' position led to a roughly two-thirds increase in the likelihood that they would leave. Workers in jobs with the lowest barriers to entry were most inclined to leave after a promotion, compared with those that required a graduate school or advanced technical degree.
To be sure, recently promoted employees also quit for other reasons. For example, promotions can lead to workers being overwhelmed by new responsibilities and higher expectations. But ADP's findings suggest that, rather than engendering loyalty to a company, workers could view their promotions as giving them a leg up in finding another job.
One factor mitigating the risk for employers: Promotions are quite rare. Only 4.5% of workers earn promotions within their first two years in a job, according to previous ADP research.
veryGood! (83)
Related
- Matt Damon remembers pal Robin Williams: 'He was a very deep, deep river'
- Ravens vs. Bengals Thursday Night Football: Baltimore rolls in key AFC North showdown
- Alexa PenaVega Is Pregnant, Expecting Baby No. 4 With Carlos PenaVega
- Powerful earthquake shakes southern Philippines; no tsunami warning
- Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
- Bengals believe QB Joe Burrow sprained his wrist in loss to Ravens
- New Jersey casino, internet, sport bet revenue up 6.6% in October but most casinos trail 2019 levels
- Three major Louisiana statewide offices to be decided by voters Saturday
- Chief beer officer for Yard House: A side gig that comes with a daily swig.
- A Swedish hydrofoil ferry seeks to electrify the waterways
Ranking
- Sonya Massey's father decries possible release of former deputy charged with her death
- Economic fact in literary fiction
- Olympic champ Sunisa Lee gained 45 pounds due to kidney issue. 'It was so scary.'
- George Brown, drummer and co-founder of Kool & The Gang, dead at 74
- Audit: California risked millions in homelessness funds due to poor anti-fraud protections
- Dolly Parton dug deep to become a 'Rockstar': 'I'm going to bust a gut and do it'
- Elon Musk faces growing backlash over his endorsement of antisemitic X post
- The Bills' Josh Allen is a turnover machine, and he's the only one to blame
Recommendation
New Zealand official reverses visa refusal for US conservative influencer Candace Owens
Miracle dog who survived 72 days in the Colorado mountains after her owner's death is recovering, had ravenous appetite
Taiwan’s opposition parties fail to agree on a joint candidate for January’s presidential election
Texas murderer David Renteria executed, 22 years after abduction, killing of 5-year-old
NCAA President Charlie Baker would be 'shocked' if women's tournament revenue units isn't passed
Why Taylor Swift and Travis Kelce Belong Together, According to Jake From State Farm
New Maldives president is sworn in and vows to remove Indian troops
Snoop Dogg says he's 'giving up smoke' after releasing a bag with stash pockets, lighter