Promotions are often used today to retain top staff. However, new research indicates that promotions may increase employee turnover, at least in the short term. Something that I think many of you will find interesting and give you something to think about. Check it out here.
The fact is that promoted Employees More Likely to Quit
According to a recent study, employees who are promoted are 29% more likely to quit their jobs in the first month after the promotion compared to if they had not been promoted (18% quit rate). The increase in turnover is even higher for low-skilled workers after being promoted.
Why Promotions Lead to More Turnover
There are a few key reasons why promotions can increase turnover:
Increased Visibility
- A promotion comes with a new job title and responsibilities, which makes workers more visible and attractive to other potential employers. A card manager in a shop is more desirable to another retailer.
Transition Difficulties
- Moving into a management role requires a different skill set than individual work. This transition can be challenging and, if expectations aren't met, can cause frustration and prompt employees to look elsewhere.
Newness Wears Off
- At first, a promotion is exciting. But as the novelty wears off, some workers realize the new role isn't the right fit. This disappointment can motivate them to quit.
Long-Term Benefits of Promotions
However, promotions aren't all bad in terms of retention. After an initial spike, turnover rates for promoted employees decrease.
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Once settled into their new roles, promoted workers become more committed to the organization long-term.
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You can reap the benefits of upskilling and promoting top talent with proper support during transitions.
Key Takeaways
- Promotions lead to increased turnover in the short-term as workers may be given the job and only later when they settle in the title.
- Transition support is crucial to curb turnover and boost long-term commitment.
- You should weigh potential retention risks before promoting.
Conclusion
While promotions have traditionally been seen as a reward and retention strategy, companies need to be aware of potential unintended turnover consequences. With preparation for transitions and honest conversations about expectations, organisations can still leverage promotions to engage employees and develop skills.
