Talent Retention Challenges Amid AI Disruption

A new Workday report highlights several troubling trends for CHROs: top performers are leaving their roles at higher rates, career mobility has stalled, and internal hiring is down across nearly every industry. The report explored the results of two surveys of 1,700 business leaders in North America, Europe, and Asia conducted in July 2025 in conjunction with Hanover research.

Why it matters: Retaining top talent is becoming harder just as organizations need agility to navigate AI transformation. Elevated attrition is hitting three-quarters of industries, raising alarms for CHROs.

Why Top Talent is Leaving 

• Stalled growth opportunities: Lack of career advancement was the top reason high performers disengage. 

• Internal hiring/promotions stagnant: More than half of roles take 30+ days to fill, and one in four remain open after 60 days. 

• AI-driven uncertainty: Nearly half of employees have negative perceptions of their organization’s AI strategy, fueling anxiety and disconnection. 

The bottom line: Promotions dropped in 10 of 11 surveyed industries, and internal hiring fell by 8% compared to last year.

Workday’s take: CHRO Association member Ashley Goldsmith, Workday’s Chief People Officer, cautioned: “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.” 

Considerations for CHROs: 

• Career Path is Critical: Provide clear advancement opportunities to keep talent engaged. Transparent career development signals commitment to employees’ futures. 

• Human-Centered AI Strategy: Clear communication that emphasizes how AI complements—not replaces—the workforce is essential for building needed trust.

• Reinvest in Learning & Development: A report from DDI prioritizes building and developing talent from within. According to Perceptyx, employers must focus on upskilling, especially for mid-career employees, to sustain engagement amid change.