New research from the ADP Research Institute reveals some interesting insights about the relationship between promotions and employee turnover. The study analyzed the job histories of over 1 million US workers at companies with at least 1,000 employees between 2019 and 2022.
According to the findings, 29% of workers who were recently promoted ended up quitting within a month after receiving their promotion. In comparison, if they hadn't been promoted, only 18% of these workers would have left. This indicates a significant increase in the likelihood of leaving for those who have recently been promoted.
However, the odds of leaving their companies even out for promoted and non-promoted employees after approximately six months. It's worth noting that the analyzed period coincided with the job-switching phenomenon known as the "Great Resignation."
Why are recently promoted workers more likely to leave? One possibility is that some employees already had plans to switch jobs, and the promotion didn't alter their intentions. On the other hand, getting promoted may have made them more marketable to other employers, who see the promotion as a sign of confidence and capability. This suggests that the promotion itself may have contributed to their decision to leave.
The report also highlights that promotions can enhance employees' credibility and perceived value in the job market. Workers in jobs that don't require a high school diploma were found to be six times more likely to leave their companies after receiving a promotion. The promotion serves as a credential that can be used to negotiate better pay or secure higher positions at other organizations.
While promotions are relatively rare, with only 4.5% of workers experiencing them within two years of being hired, it's important to recognize the significant impact they can have on an employee's career trajectory and job search. Employers should be mindful that promoting talented individuals increases their marketability and potential attractiveness to other companies.
These findings shed light on the complex relationship between promotions and employee turnover, prompting organizations to consider the implications of promoting employees and to better understand the factors that influence employees' decision to stay or leave.