NEW YORK–Credit unions that actively work to promote employees internally might want to be careful—some workers are celebrating promotions by walking out the door, according to a new report.
“A large number of employees leave soon after their first promotion, according to new data from payroll-services provider ADP,” reported the Wall Street Journal. Analyzing the job histories of more than 1.2 million U.S. workers between 2019 and 2022, the ADP Research Institute found in its new report titled “The Hidden Truth About Promotions” that 29% of people quit their jobs within a month after their first promotion.
“It estimates that the departure rate for similar workers who weren’t promoted was 18%,” the Journal report added.
According to the Journal, the ADP analysis examines the pandemic era of work, a period marked by a red-hot job market and a wave of workers’ quitting and finding new jobs.
“The findings suggest that promotions, rather than enticing workers to stay, sometimes signal a flight risk,” the Wall Street Journal reported. “They show how challenging it has been for employers to retain workers, given one of the main tools they have to inspire loyalty doesn’t appear to always be so effective.”
Reasons for Jumping Ship
According to recruiters and hiring managers, employees jump ship after promotions for a host of reasons, recruiters and hiring managers say.
Nela Richardson, chief economist with ADP, said the weeks and months after a promotion are critical to ensuring newly promoted employees are fulfilled and supported in their new roles, and sometimes companies fall short on providing the training and assistance they need. A promotion can also give a worker the confidence to seek a better job somewhere else, the report observed.
“You think there’d be this euphoria and commitment,” after a promotion, Richardson told the Journal. Instead, “people are thinking, ‘What is the next step?’ ”
Another Factor Plays Role
There is also another issue at play, according to one person.
“If I’m a recruiter, and I’m looking for certain skill sets regularly, my feed is going to show me Jimmy’s made a move,” Dani McDonald, vice president at staffing agency Kelly Services, told the Journal, which noted McDonald makes a point to follow up with such people post-promotion. After three months, she says, that person will know whether the new role is really what was described to them. By six months, they will “really, really know” if it is a good fit.
The ADP data show that, after six months, the likelihood a recently promoted employee will leave is the same as for other workers.
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