A new report from the ADP Research Institute, titled Today at Work, has been released, most notably weighing the benefits and drawbacks of offering promotions to current employees. The job histories of more than a million U.S. workers was analyzed, searching for a relationship between receiving a promotion and leaving the company.
The responses revealed unintended consequences associated with promotions. Under certain conditions, promotions can impact businesses positively, yet the other side of the coin offers hidden setbacks that may follow certain employment advancement opportunities. Some underprepared workers may crack under the pressure of securing their new role in the company.
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The survey noted that within a month after receiving their first promotion, 3 in 10 people parted ways with their employer. Had these workers not been promoted in the first place, only about 1 in 5 workers would have moved on. After a period of six months both newly promoted workers and those who had not been promoted had the same chance of leaving the company.
"Productivity has always been a key metric monitored by decision-makers and economists, but understanding what drives productivity has been difficult to measure. In this report, we're able to illustrate the important link between motivation and commitment and productivity," says Dr. Nela Richardson, ADP chief economist and head of the ADP Research Institute.
Additional variables will always factor into the impact of a promotion. Workers in jobs with fewer barriers to entry are more likely to quit after being newly promoted. In roles that demand extensive preparation such as graduate school or an advanced technical degree, a promotion increased a manager's risk of leaving more than it did for non-managerial workers.
A successful employer will take a strategic approach to promotions, as their follow-throughs are key to top employee retention. Provide career development opportunities that help workers transition into their new roles and responsibilities with ease, which may inevitably increase worker commitment to their employer.
Be cautious, as promotions may lead to potential resignations. Having a plan to mitigate losing critical managerial talent is essential in the fast moving pace of today's job market. Motivated workers are more likely to land promotions, yet keeping these recently promoted employees onboard is key to potentiating business growth.
"Motivated and committed workers are invaluable to employers, but tracking their state of mind can be challenging," the report says.
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