Workday has published its latest Global Workforce Report, highlighting concerns over talent retention, career progression, and employee anxiety around artificial intelligence.
The report, based on aggregated data from Workday Recruiting, HiredScore, Workday Peakon Employee Voice, and Workday People Analytics, analyses hundreds of millions of anonymised transactions and interactions across a variety of organisations and employees worldwide. The findings indicate a shift in workforce dynamics and raise questions for business leaders about how to navigate accelerated technological change while maintaining engagement and business performance.
Exodus of top performers
The report identifies a trend of increasing attrition among high performers, noting that the issue now spans every major industry. According to Workday's analysis, high performers were already leaving at higher rates in 75% of industries last year. This year, that rate has increased to 100% of industries. The most pronounced rises were recorded in the retail sector (64% increase in attrition) and healthcare (28%).
Recruitment for key roles is also becoming more challenging, with data showing that more than half of open roles currently remain unfilled for more than 30 days, and 25% of positions take over 60 days to fill. This points to mounting difficulties in both attracting and securing appropriate replacements for departing talent.
Career growth stalls
Opportunities for internal growth appear to be dwindling. Workday's global data shows that promotions have declined across 10 of 11 industries, while internal hiring rates have fallen by 8%. The report suggests this downward trend is contributing to disengagement, as employees perceive fewer prospects for career advancement within their current organisations.
According to Workday, these changes are fuelling an environment where, as internal mobility slows, top talent becomes more likely to pursue roles elsewhere. The consequence is not only a loss of valuable skills but also potential damage to engagement and morale amongst those who remain.
AI strategy disconnect
The impact of artificial intelligence in reshaping organisational processes is widespread, but the report uncovers a communication gap between leadership and employees regarding AI strategy. Analysis of internal employee surveys reveals that 44% of comments mentioning AI and strategy are negative, reflecting a lack of clarity and eroding employee confidence. The report suggests that this disconnect is slowing the pace of technological transformation within organisations.
The lack of effective communication and involvement leaves many employees feeling anxious about what the future holds, especially as AI integration accelerates. This sentiment is evident, with 78% of organisations now expecting entry-level candidates to possess AI-related skills, leading to anxiety amongst over half of jobseekers who fear reduced opportunities.
"AI may be rewriting the rules of work, but it cannot replace the value of engaged, motivated people," said Ashley Goldsmith, chief people officer, Workday. "The companies that succeed will retain top talent, create meaningful growth opportunities, and have a clear strategy for human-AI partnership that drives results."
Retention and engagement
The report notes that the strength of an organisation's workforce continues to underpin business success, even as technology disrupts established processes. As job openings rise by 6% year-on-year and the applicant pool shrinks, business leaders are reminded of the strategic importance of investing in people, not just technology.
Other findings warn that almost half of jobseekers are being ghosted during recruitment processes, an issue that risks damaging employer brands and hampering future hiring efforts.
Workday's report emphasises actionable insights for leaders aiming to retain valuable talent and ease workforce anxiety. It recommends prioritising clear career pathways, human-centred AI adoption, and transparent communication as essential steps for any organisation seeking to adapt successfully to labour market pressures and technological evolution.
According to the report, companies that address the internal talent drain and offer real growth opportunities are better positioned to protect their performance and competitiveness during a period of significant workplace change.
