AI platform for HR and finance management, Workday, Inc. has released the next iteration of its Global Workforce Report, which reveals a talent crisis building inside organisations.
Ashley Goldsmith, chief people officer at Workday
While employment statistics point to a cooling labour market, Workday data shows a different kind of pressure building inside companies: a continued exodus of top performers, stalled career mobility, and AI strategies that leave employees feeling disconnected.
The report, The Hidden Talent Drain: Reinvesting in Employee Growth to Unlock Your AI Advantage, uncovers a critical disconnect. As leaders fixate on hiring challenges, they're missing the real threat: an internal drain of talent that is reshaping organisations from the inside out.
It's a silent crisis, where unclear career paths and a lack of direction are driving away high performers eager to grow. The problem isn't opportunity—it's the failure to connect people to company strategy at the very moment AI is accelerating change and uncertainty.
"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."
Data from Workday Recruiting, HiredScore, Workday Peakon Employee Voice, and Workday People Analytics – aggregated from hundreds of millions of anonymised transactions and interactions across a range of companies and employees globally – identify three urgent challenges for organisations:
- The best people are leaving: High performers were leaving with increasing alarm across 75% of industries last year. That trend is growing, with attrition rates up across 100% of industries this year.
The most significant increases were in retail (64%) and healthcare (28%). Replacing them is harder than ever: more than half of open roles now take over 30 days to fill, and a quarter stretch past 60 days, highlighting the challenge of finding and securing new talent.
- Internal career growth has stalled: High performers are leaving at accelerated rates due to lack of growth. Promotions are down in 10 of 11 industries, and internal hiring has fallen 8%.
This means fewer opportunities for people to advance their careers without leaving the company. When growth stalls, engagement erodes, and top talent starts looking elsewhere.
- AI strategy is getting lost in translation: As AI reshapes work, companies are failing to bring employees along. The report found that 44% of employee comments made in organisations' internal employee surveys mentioning strategy and AI are negative.This highlights a clear disconnect between leadership and the front lines, slowing down change and eroding trust.
The findings underscore that retention and career growth are no longer optional – they are mission-critical for companies seeking to protect performance, maintain engagement, and stay competitive in a rapidly changing workforce.
Organisations that invest in clear career pathways, human-centered AI strategies, and transparent communication are best positioned to retain top talent and win in the AI era.
For additional information
- Read the full report, [[https://forms.workday.com/en-us/reports/global-workforce-report-2025/form.html?locale=enus&aud=wd&stage=edu&size=all&pblr=wd&pnpnt=agi&camp=701VT00000XVGqMYAX&assettype=rep&productfocus=hcm&utm_medium=pres&utm_source=pres The Hidden Talent Drain: Reinvesting in Employee Growth to Unlock Your AI Advantage.
- Discover more about the trends outlined in the report, [[https://blog.workday.com/en-us/new-research-signals-talent-drain-hiding-plain-sight.html New Research Signals a Talent Drain Hiding in Plain Sight.
