In South Africa, as in many parts of the world, the familiar story of talent poaching and competitive salaries is often cast as the greatest threat to workforce stability. But a recent report from Workday suggests the real danger lies much closer to home, that being within organisations themselves. The culprit? A lack of growth opportunities, stalled career paths, and strategic disconnects fuelling what’s being called a “hidden talent drain.”
What the Workday Report Shows
According to The Hidden Talent Drain: Reinvesting in Employee Growth to Unlock Your AI Advantage, high performers are leaving companies in growing numbers, not because of external pull alone, but because internal push factors are pushing them out. Key findings include:
- High performers are departing across 75% of industries last year, rising to 100% of industries this year.
- Retail and healthcare are among the hardest hit. Retail “attrition” (i.e. departure) rates increased by 64%, healthcare by 28%.
- Internal promotion/advancement is slowing. In 10 out of 11 industries, promotions are down; internal hiring has also dropped by 8%.
- AI is accelerating change, but organisations aren’t bridging the gap. Nearly half of the comments from employees surveyed that touched on strategy and AI were negative. That signals both distrust and confusion about the future.
Ashley Goldsmith, Chief People Officer at Workday, sums it up: It’s not just about hiring. Retention matters. Without clear career paths, meaningful growth, and alignment of strategy (including AI strategy) with employee experience, companies risk eroding their competitive edge.
Why This Matters in South Africa
The findings resonate strongly for South Africa, where many sectors already face skills shortages, “brain drain,” and shifts in workforce expectations.
Here are some thoughts on how this plays out locally:
- High expectation among professionals
South Africa has a growing cohort of well-trained, ambitious employees who expect more than a salary. They want clarity, progression, mentorship. When those aren’t visible, the allure of greener pastures, whether abroad or with more agile local firms becomes strong. - Economic pressures & constrained growth
With a challenging economic environment, firms may be cutting back on promotion, training, and internal mobility as cost-saving measures. But these “savings” may cost more in turnover costs, knowledge loss, and morale. - AI & digital transformations
As local companies lean into digitisation, automation, and AI, the capacity to bring people along is critical. If employees feel AI is just jargon, or the strategy is opaque, this can breed anxiety instead of buy-in, especially when whole jobs are changing or roles shifting. - Competition for talent is rising
It’s not just about multinational firms versus local ones, many startups, NGOs, and smaller firms are offering more flexible career paths, remote/hybrid work, and professional development. That means high performers are less “locked in” than before.
Hope & Opportunity: It’s Not Too Late
The reality is unfortunately harsh. When growth stalls, people leave, and not always for better offers, sometimes just for a sense that their work and potential matter. But the good news is that many of the levers to reverse this “hidden drain” are well within reach:
- Training and mentoring aren’t huge budget drains but can yield high loyalty and engagement.
- Transparent communication about strategy, AI integration, and what’s changing can reduce anxiety.
- Meaningful growth paths, not just promotions, but lateral moves, special projects and cross-functional exposure can keep people engaged.
For South Africa especially, where skilled people are already in demanding supply, the difference between a firm people stay with and one people leave is increasingly whether that firm is willing to grow with them and not just pay them.
Parting Thought
In today’s rapidly shifting world, the toughest competition isn’t always external. Often it’s internal. For companies in South Africa, the challenge is to stop looking outward for their talent problems and start acknowledging what may be happening inside resulting in top performers quietly slipping away because they feel stuck, unheard, or disconnected.
For employees, it’s a reminder that growth isn’t just about waiting for opportunities, it’s sometimes about creating them, asking for them, demanding them, choosing workplaces where your potential is recognised and invested in.
If we can shift mindsets on both sides, this “hidden talent drain” can become an opportunity to build stronger, more resilient organisations and more fulfilled careers.
