In today’s rapidly evolving workplace, the rules of talent management are being rewritten. Employees are no longer satisfied with static roles, linear career paths or surface-level perks. They want growth, purpose, a sense of belonging and a clear future within their organizations. Yet many companies continue to rely on outdated strategies that focus more on attracting talent than keeping it.
This is the central theme of Right Management’s latest proprietary report: “The Career Equation: What Attracts Talent Isn’t What Keeps Them.”
As a global talent development leader for over 45 years, Right Management partnered with Reputation Leaders to conduct independently commissioned research between March and April 2025. The study gathered insights from 2,402 white-collar employees and 1,029 business leaders across eight countries and four major regions: North America, Latin America, Europe and Asia-Pacific. The goal? To uncover what truly drives engagement, retention, and career satisfaction in today’s workforce.
The findings are clear: career development and support are no longer luxuries — they’re necessities. And they’re the missing link in many organizations’ talent strategy.
The Career Disconnect: What Leaders Miss in Talent Retention and Employee Engagement
One of the most striking insights from the report is the disconnect between what leaders think drives engagement and what workers actually value. While many leaders continue to emphasize compensation and job logistics, employees are telling a different story.
According to the data:
- Career support accounts for 27% of employee engagement variance.
- Yet leaders attribute only 20% of engagement to career development and support.
- Meanwhile, compensation, often overemphasized by leadership, impacts just 9% of employee engagement scores.
This misalignment has real consequences. When employees don’t see a future for themselves within the organization — when growth feels out of reach — they disengage. And when they disengage, they leave.
This isn’t just a theoretical risk. According to Gallup, only 31% of U.S. employees are engaged — the lowest level in over a decade — costing companies billions in lost productivity. The numbers reinforce what the report reveals: organizations are investing in the wrong levers, and it’s costing them dearly.
The Talent Paradox: Losing the People You Need Most
This leads to a troubling paradox: the most employable, high-performing individuals — those with strong skills and a growth mindset — are the ones most likely to leave. Why? Because they’re actively seeking development, and if they can’t find it internally, they’ll look elsewhere.
Organizations often assume that retention is about loyalty or satisfaction. But in reality, it’s about mobility, opportunity and alignment/fit. Employees stay when they can grow. They leave when they feel stuck.
This is why career development and support must be treated not as a personal responsibility, but as a shared strategic priority. It’s not just about helping individuals succeed — it’s about building a workforce that’s ready for what’s next.
From Ladder to Lattice: Rethinking Career Growth
To meet this moment, organizations must rethink how they define and support career progression. The traditional corporate ladder — a rigid, vertical path — no longer reflects the realities of modern work. Today’s employees value lateral movement, skill-building and purposeful work just as much as promotions.
This shift calls for a new model: the career lattice. It’s a flexible, multidirectional framework that allows employees to explore new roles, develop new capabilities and find meaning in their work, all while staying within the organization.
But embracing the lattice isn’t just about offering more options. It’s about making those options visible, accessible and aligned with both individual aspirations and business strategy. Without transparency and flexibility, even the most well-intentioned development programs fall flat.
Fit and Career: Two Sides of the Same Coin
Career development doesn’t happen in isolation. It’s deeply intertwined with organizational culture and fit. Employees want to feel that their values align with those of the company, that their leaders are role-modeling purpose and that their growth is supported — not stifled.
The report emphasizes the importance of hardwiring culture into talent strategy. This means:
- Assessing values, motivations and preferences during hiring
- Coaching leaders to conduct meaningful career conversations
- Ensuring cultural fit before making talent decisions
When culture, fit and career development are aligned, organizations create environments where employees feel seen, supported and empowered to grow. And that’s where engagement truly begins.
Potential Over Performance: A Smarter Way to Develop Talent
In a world where skills and business needs are constantly evolving, past performance is no longer the best predictor of future success. Organizations must shift their focus to potential — identifying traits like adaptability, curiosity and resilience.
The report recommends using tools such as:
- Psychometric assessments
- 360-degree reviews
- Success profiles
These tools help leaders build a holistic view of their workforce, identifying who’s ready to grow, who’s at risk of leaving and where to invest development resources. This data-driven approach ensures that career development isn’t just reactive — it’s strategic, intentional and aligned with future business needs.
Bridging the Gap: Three Actions for Leaders
To move from insight to impact, the report outlines three key actions for leaders — each designed to close the gap between employee expectations and organizational strategy.
1. Hardwire Culture into Your Talent Strategy
Cultural fit is harder to build than skills. Leaders must assess alignment early and often and model the organization’s values in their daily interactions. Coaching and career conversations should be standard practice, not occasional events.
2. Prioritize Potential Over Performance
Use assessments and mobility data to identify growth traits. Understand who’s moving, who’s staying and who’s disengaging — and use that insight to guide development investments.
3. Build Meaningful Careers for Sustainable Growth
Career development isn’t just a talent retention tool — it’s a growth strategy. Offer coaching, self-awareness assessments and flexible learning opportunities. Make career paths visible and ensure employees have the freedom to explore and test new skills.
Together, these actions form a roadmap for building a workforce that’s not only engaged but equipped for the future.
Conclusion: Career Development Is the New Talent Retention Strategy
This first installment of 2025’s The State of Careers series makes one thing clear: career development and support are no longer optional. It’s the missing link in talent strategy: the key to unlocking employee engagement, retention and long-term workforce readiness.
Organizations that invest in career development aren’t just keeping employees — they’re building the capabilities they’ll rely on tomorrow. They’re creating cultures of growth, purpose and alignment. And they’re positioning themselves to thrive in a future where adaptability is everything.
Dive Deeper into "The Career Equation"
Join our expert panel on October 7 for a live conversation unpacking the latest State of Careers research. You’ll discover:
- What employees truly value across regions — and how to meet their expectations
- Proven strategies to elevate experience, boost engagement and reduce turnover
- How to turn insight into action and build a future-ready talent strategy
Don’t miss out — reserve your seat today!
