Vague promotion policies are making companies lose talent

Promotion policies are more than a formality; they determine how employees see their future within the organisation and how employers retain talent. Yet Robert Walters' recent salary survey shows that a lot of employers are falling short. Indeed, employees expect more clarity about their growth path in 2025, but this is often lacking. In the article below, we explain why a strong promotion policy is crucial, what employees really want, and how employers can respond to it to retain valuable talent.

Employees seek clarity

The survey shows that insufficient growth and learning opportunities are the main reason for employees to change jobs (50%). This makes it clear that career progression is at the top of the wish list. Yet only 10% of surveyed employees say their employer offers a well-defined promotion path. A significant proportion find the path rather vague (33%) or even unclear (45%).

A lack of a clear growth path creates uncertainty and frustration among employees. It is worrying that so few organisations respond to this, while clear career perspectives are an essential part of retention. If employees don't know where they stand, they will look elsewhere for opportunities that do match their ambitions.

Expectations

Survey results show that as many as two-thirds of employees hope to be promoted within the next two years.

When promoted, employees mainly expect a significant pay rise (54%). More challenging responsibilities (26%) and greater decision-making power (10%) are also on the wish list. Only a small percentage think primarily of a title change (4%) or fringe benefits (5%).  

These expectations are not always met in practice: almost 40 per cent of employees feel they were once passed over for a promotion they did deserve. This fuels frustrations and is a potential driver for a job switch.

What are employers up to in 2025?

Of the employers surveyed, 41% said they had lost crucial staff in the past year because they had better growth opportunities elsewhere. Many therefore understand the importance of a strong promotion policy as a retention strategy, with 36% citing clear career progression as their most effective weapon for retaining staff. Yet the same survey shows that only 24% of organisations regularly offer promotions or job increases to reward good employee performance.

The results of this survey outline a clear discrepancy: employees expect more clarity and opportunities for growth, while many employers are not yet able to meet them. We expect a lot of movement in the labour market in 2025: as many as 57% of employees plan to change jobs in the coming year. A lack of transparency around promotions could push turnover rates even higher.

Closing the gap 

Employees in 2025 are looking for advancement; not just in their salary, but also in their professional growth. Employers who focus on clear career paths and competitive pay have an edge in the battle for talent. Transparency and dialogue will be the key words in this regard to close the gap between expectations and reality.

More information

Download our digital Salary Survey to benchmark your teams' salaries of contact on of our offices.