Despite the billions spent on performance management systems, many organizations are missing the mark when it comes to employee development. The problem isn’t that feedback is bad. Instead, it’s that feedback alone isn’t enough.
In the age of AI, Employees are navigating an ever-evolving workplace shaped by constant digital transformations, shifting skill demands and flattened hierarchies. They’re eager to grow, but they’re not looking for another performance review. They’re looking for real opportunities to build skills, explore new roles and shape their futures.
Right Management’s latest report, “The Career Imperative,” reveals a critical misalignment between what employees say they need and what organizations are actually delivering. This second installment in our 2025 The State of Careers™ series builds on the insights from “The Career Equation,” which showed that what attracts talent isn’t what keeps people engaged and growing.
The New Reality: Flattened Org Charts, Accelerated Change and AI Disruption
Before we dive into what’s broken in career development, it’s important to understand the forces reshaping the workplace itself.
Organizations are undergoing structural shifts. Traditional hierarchies are flattening, and middle management layers are shrinking. This means fewer formal promotion opportunities and less visibility into upward mobility — a major challenge for employees trying to envision their future within the company.
At the same time, AI disruption is rapidly redefining roles. Tasks are being automated or augmented, and the skills required to succeed are evolving faster than ever. According to the World Economic Forum, 39% of the skills employees use today will change or become outdated within five years.
This pace of change is leaving both employees and leaders scrambling. Managers are overwhelmed, often juggling productivity demands with limited HR support. Employees, meanwhile, are trying to grow and adapt, but without clear guidance. They’re left to navigate a shifting landscape on their own.
In this environment, static development models — like annual reviews and generic training — simply don’t cut it. What’s needed is a new talent strategy — a dynamic, skills-based approach that fosters career growth and helps employees stay ready for what’s next.
The Budget Breakdown: What Organizations Fund vs. What Employees Value
In this age of AI, our global research — based on responses from 2,402 white-collar employees and 1,029 business leaders across eight countries — uncovered a telling disconnect.
While 74% of organizations say they’re investing in performance measurement and feedback, employees rank internal mobility (20%) and formal development programs (19%) as the most helpful forms of support. Mentoring, coaching and experiential learning — the very tools that drive real career growth — are often underfunded or deprioritized.
This isn’t just a misalignment. It’s a strategic blind spot.
Employees want to build skills, explore new roles and solve real problems. They’re not looking for more feedback. They’re looking for fuel — development that moves them forward.
The Feedback Trap: Static Systems in a Dynamic World
Performance reviews have long been the default mechanism for career development. But in today’s fast-paced environment, they’re increasingly out of sync with how work — and growth — actually happens.
AI is reshaping roles, automating tasks and redefining what success looks like. Skills are evolving rapidly, and the shelf life of expertise is shrinking. In this context, annual reviews and generic development plans feel disconnected and outdated.
What employees need is real-time, relevant and personalized support. They want:
- Opportunities to apply new skills in live environments
- Coaching that’s tied to current challenges
- Clear visibility into internal mobility options
- Development that’s aligned with both personal goals and business strategy
When organizations fail to provide this kind of support, employees are left to navigate their careers alone, often through trial and error. And while self-direction is admirable, it rarely leads to strategic alignment or long-term retention.
The Employee Engagement Crisis: A Symptom of Misaligned Development
This disconnect between what workers want and what organizations provide is contributing to a broader crisis in employee engagement.
In “The Career Equation,” we found that career support accounts for 27% of employee engagement variance, yet leaders only attribute 20% to it. Compensation, often overemphasized, impacts just 9%.
And the consequences are real. According to Gallup, only 31% of U.S. employees are engaged — the lowest level in over a decade. That means nearly seven in 10 workers are disengaged, costing companies billions in lost productivity, innovation and retention.
The paradox? The employees most likely to leave are the ones you need most — high performers with strong skills and a growth mindset. These individuals aren’t just looking for a job. They’re looking for a journey. If they can’t find it internally, they’ll look elsewhere.
What Real Career Development Looks Like in the Age of AI
So, what does effective career support look like in 2025 and beyond? Rather than replacing feedback, organizations should reframe it within a broader, more dynamic support system.
Here are five principles companies should embrace:
1. Make Development Experiential
Move beyond theory. Tie learning to real business challenges. Let employees build skills through mentorship, cross-functional projects and hands-on experimentation.
2. Invest in Internal Mobility
Career growth doesn’t always mean promotion anymore. Create clear pathways for lateral moves, skill pivots and project-based advancement. Make these options visible and accessible.
3. Equip Managers to Coach, Not Just Evaluate
Managers are often the gatekeepers of development, but many feel underprepared. Provide them with tools, training and authority to guide career conversations and support flexible growth.
4. Use Skills as a Strategic Lens
Adopt digital skill portfolios and transparent inventories. Help employees understand what skills are valued, where they fit and how they can grow, all while aligning with business needs.
5. Build Learning into the Flow of Work
Don’t isolate development. Integrate it into daily operations. Encourage curiosity, protect time for learning and make growth part of your culture — not just a quarterly initiative.
Connect with Right Management for a New Talent Strategy for an AI-Driven World
The workplace is evolving faster than ever, and AI is at the center of that transformation. As roles shift, skills fragment and traditional career paths disappear, organizations need more than performance reviews and static development plans. They need a talent strategy built for agility, experimentation and continuous career growth.
Right Management partners with organizations to design career development ecosystems that reflect this new reality. We help leaders move beyond legacy models and build frameworks that empower employees to grow in sync with business needs, not just once a year, but every day.
Whether you're rethinking internal mobility, upskilling for AI integration or equipping managers to lead career conversations, we bring the data, tools and expertise to make it happen.
Let’s Build a Talent Strategy That’s Ready for What’s Next!
To discover more, download “The Career Imperative.” If you like what you see, contact us for a deeper dive.
