Workday AI Research Reveals Enterprise Talent Drain Crisis

Workday has released research revealing a talent crisis within organisations, with high performers departing at increasing rates whilst internal career mobility stagnates. 

The company’s Global Workforce Report, based on data from hundreds of millions of anonymised transactions, identifies three challenges facing organisations as they navigate AI implementation and workforce management.

The research, ‘The Hidden Talent Drain: Reinvesting in Employee Growth to Unlock Your AI Advantage,’ draws from Workday Recruiting, HiredScore, Workday Peakon Employee Voice and Workday People Analytics platforms. The data covers multiple industries and employee segments globally, providing insights into current workforce dynamics.

High performers departed companies with increasing frequency across 75% of industries during the previous year. This trend has expanded, with attrition rates rising across 100% of industries in the current period. Retail experienced the most significant increase at 64%, followed by healthcare at 28%. Organisations now require more than 30 days to fill over half of open positions, with a quarter extending beyond 60 days.

Workday data shows internal hiring drops 8%

Career advancement opportunities within companies have contracted significantly. Promotions decreased across 10 of 11 industries, whilst internal hiring fell by 8%. This reduction in internal mobility creates fewer pathways for employees to advance without changing employers.

The correlation between stalled growth and departures appears direct. When advancement opportunities diminish, employee engagement declines, prompting high performers to seek opportunities elsewhere. Companies face the dual challenge of losing experienced staff whilst struggling to recruit replacements in an extended timeframe.

Ashley Goldsmith, Chief People Officer at Workday, says: “AI may be rewriting the rules of work, but it cannot replace the value of engaged, motivated people. The companies that succeed will retain top talent, create meaningful growth opportunities, and have a clear strategy for human-AI partnership that drives results.”

The research identifies internal hiring as a critical metric for organisational health. When companies promote from within, they retain institutional knowledge whilst providing career progression. The 8% decline in internal hiring suggests organisations are either unable or unwilling to invest in existing talent development.

Workday research reveals AI strategy communication gaps

Employee sentiment regarding AI strategy implementation shows concerning patterns. Analysis of internal employee survey comments mentioning strategy and AI found 44% expressed negative views. This disconnect between leadership vision and employee understanding creates resistance to technological change initiatives.

The gap between AI strategy development and employee communication appears systematic rather than isolated. Organisations developing AI capabilities often focus on technical implementation whilst neglecting workforce preparation and communication. This approach creates uncertainty among employees who may view AI as a threat rather than a tool for enhancement.

The timing of these communication failures coincides with rapid AI adoption across industries. Companies implementing AI solutions without clear employee communication strategies risk creating internal resistance that could undermine technology investments and strategic objectives.

Survey data from 1,700 business leaders across North America, the UK, France, Germany, Japan, Australia and New Zealand, combined with responses from 982 job seekers in North America, supports the internal Workday platform data. 

The research methodology combines proprietary Workday data with third-party surveys conducted by Hanover Research in July 2025. This approach provides both quantitative platform data and qualitative insights from business leaders and job seekers across multiple markets.

Companies using Workday platforms contributed anonymised data that forms the foundation of the research. With more than 11,000 organisations using Workday globally, including over 65% of the Fortune 500, the data represents a substantial cross-section of enterprise workforce activity.

The research indicates that organisations must address career development alongside AI strategy implementation. Companies that fail to provide clear advancement pathways whilst introducing AI technologies may accelerate talent departure rather than enhance productivity.

Ashley adds: “The companies that succeed will retain top talent, create meaningful growth opportunities and have a clear strategy for human-AI partnership that drives results.”