Current:Home > InvestOne way employers drive workers to quit? Promote them. -FutureWise Finance
One way employers drive workers to quit? Promote them.
View
Date:2025-04-16 01:06:48
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! (453)
Related
- 2025 'Doomsday Clock': This is how close we are to self
- Complete Your Americana Look With Revolve’s 4th of July Deals on Beachy Dresses, Tops & More Summer Finds
- Police in Texas examining 20+ deaths after boarding home operator charged with murder
- Don't Miss Free People's 4th of July Sale with Summer-Ready Essentials Starting at $19
- Moving abroad can be expensive: These 5 countries will 'pay' you to move there
- Vermont man who gave state trooper the middle finger and was arrested to receive part of $175,000 settlement
- Harry Potter cover art fetches a record price at auction in New York
- Are you traveling for July Fourth? Here's how to beat the travel rush.
- Why members of two of EPA's influential science advisory committees were let go
- AP picks 2024’s best movies so far, from ‘Furiosa’ to ‘Thelma,’ ‘I Saw the TV Glow’ to ‘Challengers’
Ranking
- Highlights from Trump’s interview with Time magazine
- Supreme Court strips SEC of key enforcement power to penalize fraud
- Mississippi sets new laws on Medicaid during pregnancy, school funding, inheritance and alcohol
- Suspect in Idaho college town killings expected in court
- FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
- 9 key numbers from MLB's first half: Aaron Judge matching historic home run pace
- Judge to weigh request to dismiss Alec Baldwin shooting case for damage to evidence during testing
- Caitlin Clark's next game: Indiana Fever vs. Seattle Storm on Thursday
Recommendation
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
Ever feel exhausted by swiping through dating apps? You might be experiencing burnout
Is Chance the Rapper taking aim at Barack Obama? What he says about new song 'Together'
GAP’s 4th of July Sale Includes an Extra 50% off Versatile Staples & Will Make You Say U-S-YAY
Average rate on 30
AP picks 2024’s best movies so far, from ‘Furiosa’ to ‘Thelma,’ ‘I Saw the TV Glow’ to ‘Challengers’
Will Lionel Messi play in Argentina-Peru Copa América match? What we know
Caitlin Clark's next game: Indiana Fever vs. Seattle Storm on Thursday