Why Career Regret Is on the Rise – and What CHROs Must Do to Rethink Retention in 2025!

Introduction

A quiet shift is underway in the workforce—one that isn’t showing up in exit interviews or LinkedIn updates, but in morning commutes filled with doubt, muted Zoom calls, and an unsettling sense of “Is this really it?” Across industries, employees aren’t just thinking about switching jobs. They’re questioning entire career paths. A recent SEEK survey found that a majority of professionals, particularly millennials and Gen X, say they regret their career choices. For some, regret stems from chasing stability at the cost of passion. For others, it’s about outgrowing roles that once felt right.

This isn’t just an individual dilemma. It’s a systemic issue that businesses can’t afford to overlook. Career regret doesn’t always lead to resignation—it lingers in the background, feeding disengagement, stalling innovation, and eroding morale. And because it’s not as visible as attrition, many leaders are missing it entirely.

For CHROs and people leaders, this is a flashing red signal: traditional retention strategies aren’t keeping pace with how employees think about purpose, progression, and personal fulfillment. If the goal is to retain high-performing talent in 2025 and beyond, then organizations need to stop asking how to keep people in their current roles and start asking whether those roles still serve the people in them.

The Rise of Career Regret: What’s Fueling It?

Career regret isn’t new, but what’s changed is how widespread, open, and urgent it’s become. The modern workforce is made up of professionals who’ve weathered recessions, a pandemic, and seismic shifts in how and why we work. And as the dust settles, a growing number are confronting a hard truth: the roles they once pursued with ambition no longer fit the people they’ve become.

For Millennials and Gen X, much of this regret is rooted in trade-offs made early in their careers. Many choose paths driven by financial security or societal expectations, only to find themselves stuck in roles that feel devoid of purpose. Gen Z, on the other hand, entered the workforce with different expectations, flexibility, meaning, and autonomy—but are quickly realizing that corporate structures haven’t caught up. Across age groups, there’s a disconnect between aspiration and reality, and it’s breeding dissatisfaction.

Technology has played its part too. The rise of remote work created space—literally and mentally—for reflection. Without the rituals of office life, many began to question the value and impact of their work. Learning platforms promised reskilling and growth, but too often delivered cookie-cutter modules with little relevance. Internal mobility exists on paper but is often inaccessible or poorly communicated.

At the heart of all this is a single, sobering realization for many employees: the career they’re in may not be the career they want. And if organizations don’t create room for that reckoning, they risk losing more than just headcounts; they risk losing trust.

Why It’s a Business Problem, Not Just an HR Problem

At first glance, career regret might seem like a personal issue—an individual’s misalignment with their role or industry. But when it starts showing up across departments, age groups, and performance bands, it becomes a structural threat. One that organizations can’t afford to overlook.

The Hidden Cost of Regret-Driven Disengagement

When employees feel stuck or misaligned, they don’t always quit. Many stay—but they disengage. And disengagement is far more insidious than turnover.

What does disengagement rooted in regret actually look like?

• A drop in discretionary effort: People stop going the extra mile.
• Silence in brainstorms: Creativity dries up when people lose belief in the work.
• Talent hoarding: Managers stop offering growth when their teams are already checked out.
• Culture erosion: Enthusiasm is replaced by apathy, especially in team rituals or collaboration.

These employees aren’t underperforming because they’re lazy—they’re underperforming because they no longer see a future they want to work toward.

The Long-Term Impact on Business Performance

CHROs and business leaders often track turnover, time-to-fill, and cost-per-hire. But here’s what often gets missed:

• Reduced innovation velocity: Teams filled with disengaged employees aren’t going to challenge norms or spot new opportunities.
• Slower cross-functional collaboration : When people lose interest in their roles, they withdraw from broader company objectives.
• Weakened employer brand : Career regret doesn’t stay private. It leaks into Glassdoor reviews, exit interviews, and peer networks.

Once career regret takes root in one corner of the business, it spreads. Colleagues sense it. Culture absorbs it. And before long, even your high performers begin to question if they’re simply succeeding at the wrong thing.

From Reactive to Proactive – New Retention Metrics for the Modern Workforce

Traditional HR dashboards are good at one thing: telling you what has already happened. Resignations. Exit reasons. Engagement scores from last quarter. But by the time these numbers show a red flag, your top talent is already halfway through their job search. The challenge now is to move from post-mortem to prediction—from measuring regret after attrition to identifying it before people mentally check out.

The Limits of Standard Retention Metrics

Most organizations still rely on:

• Attrition rates — Tell you who left, not why.
• Time-to-fill — Speaks to efficiency, not alignment.
• Engagement surveys — Often surface-level, delayed, and lacking emotional nuance.

What these numbers fail to capture is the underlying emotional disconnection employees feel from their roles, missions, or trajectories—career regret in its early form.

Introducing a Smarter Set of Metrics

To address career regret, CHROs need to embed forward-looking indicators into their people strategy. Here’s what a more evolved set of retention metrics could include:

1. Career Alignment Score (CAS)

A quarterly pulse check asking: “Does your current role align with your long-term career goals?”
Scored on a scale, this can flag teams or functions where misalignment is rising, before exits begin.

2. Aspirational Drift Index

Tracks gaps between employee aspirations (collected through 1:1s or surveys) and their current path.
It’s less about satisfaction and more about direction, spotting where employees feel they’re veering off course.

3. Internal Role Fit Ratio

A ratio of internal applicants per open role vs. external applicants.
When internal applications are low, it signals poor visibility or low trust in mobility systems—often a breeding ground for regret.

Where to Embed These Metrics

• Quarterly business reviews — Include talent risk indicators alongside financial performance.
• Manager KPIs — Hold people leaders accountable for upward mobility and alignment, not just headcount retention.
• Talent reviews — Use data to spotlight not just high performers, but those likely to disengage if unaddressed.

When CHROs track aspiration and alignment as closely as attrition and productivity, they gain a competitive edge—one that can’t be replicated by salary hikes alone.

The Internal Talent Marketplace Isn’t Enough

On paper, the internal talent marketplace seemed like the fix. Build a portal, list open roles, and let employees move around like chess pieces on a smarter board. In practice, it hasn’t lived up to the hype—not because the idea is flawed, but because execution rarely addresses what truly drives career movement: relevance, autonomy, and emotional investment.

Why Most Internal Mobility Platforms Fall Flat

While companies have invested in internal job boards and gig systems, they often suffer from:

• Visibility gaps – Many employees don’t even know the platform exists, or how to use it.
• Access hurdles – Employees feel discouraged from applying due to fear of team conflict or lack of manager support.
• Role fatigue – Most roles posted are lateral, not aspirational. They feel like more of the same.

It becomes less a marketplace and more a recycle bin—where roles go to sit.

What Employees Actually Want Instead

To make internal movement meaningful, companies need to replace formality with flexibility and transactional listings with career stories. That means:

1. Micro-Role Pilots

Allow employees to try a role or project for 2–4 weeks before fully transitioning. This removes the risk and gives both parties a realistic preview.

2. Job Crafting Support

Give employees the freedom to reshape their current roles—shifting focus areas, swapping responsibilities, or collaborating across teams—without the formality of a job switch.

3. Project-Based Sabbaticals

Instead of stepping away from the organization entirely, employees can take a few months to join innovation pods, R&D teams, or short-term task forces to reignite engagement.

Make It Compete with the External Market

The benchmark isn’t just internal interest—it’s external temptation. If your internal opportunities aren’t as exciting as a recruiter’s InMail, you’re not competing—you’re defaulting. Real talent marketplaces don’t just manage roles; they inspire ambition

From Burnout to Breakthrough: Building an Anti-Regret Culture

Burnout has become a pervasive issue in today’s workplaces, with significant implications for both employee well-being and organizational performance. A recent study published in the American Journal of Preventive Medicine estimates that burnout costs companies approximately $4,000 to $21,000 per employee annually, potentially totaling around $5 million each year for a 1,000-employee organization. ​

This data underscores the urgency for organizations to proactively address burnout and cultivate a culture that prevents career regret.​

Understanding the Burnout-Regret Connection

Burnout often manifests as chronic workplace stress that has not been successfully managed, leading to feelings of energy depletion, increased mental distance from one’s job, and reduced professional efficacy. When employees experience burnout, they may begin to question their career choices, leading to regret and disengagement. This cycle not only affects individual performance but also contributes to higher turnover rates, further impacting the organization’s stability and growth.​

Strategies to Foster an Anti-Regret Culture

To break this cycle and build a supportive work environment, organizations can implement the following strategies:

1. Prioritize Mental Health and Well-being

Integrate comprehensive wellness programs that address physical, mental, and emotional health. Encourage open conversations about mental health to reduce stigma and provide resources such as counseling services and stress management workshops.

1. Enhance Job Role Clarity and Autonomy

Ensure that employees have a clear understanding of their roles and the flexibility to approach tasks in a way that aligns with their strengths. Empowering employees with autonomy can increase job satisfaction and reduce feelings of helplessness associated with burnout.

1. Recognize and Reward Contributions

Regularly acknowledge employees’ efforts and achievements. Recognition can be a powerful motivator and can help employees feel valued, thereby reducing feelings of regret and disengagement.

1. Provide Opportunities for Growth and Development

Offer continuous learning opportunities and clear pathways for career advancement. When employees see a future within the organization, they are less likely to experience career regret and more likely to remain engaged.

1. Foster a Supportive Community

Create a workplace culture that promotes collaboration and support among colleagues. Building strong interpersonal relationships at work can provide employees with a sense of belonging and a support system to navigate challenges.

By implementing these strategies, organizations can create an environment where employees feel supported, valued, and aligned with their career paths, thereby reducing burnout and the associated costs of turnover.

Strategic Imperative for CHROs: Rethinking the Employer Value Proposition

In today’s competitive talent landscape, a well-crafted Employer Value Proposition (EVP) is no longer a luxury—it’s a necessity. An effective EVP not only attracts top talent but also plays a pivotal role in retaining them. Research indicates that organizations with compelling EVPs can decrease annual employee turnover by nearly 70%. ​

Understanding the Modern EVP

An EVP encompasses the unique set of benefits and values that an organization offers to its employees. It’s the answer to the question: “Why should a talented individual choose to work here?” Beyond competitive salaries, a robust EVP addresses:​

• Work-Life Balance: Flexible schedules and remote work options.​
• Career Development: Opportunities for growth, mentorship, and continuous learning.​
• Company Culture: An inclusive environment that fosters collaboration and innovation.​
• Purpose and Values: Alignment with meaningful missions and social responsibility initiatives.​

The Business Case for a Strong EVP

Investing in a compelling EVP yields tangible benefits:​

• Reduced Turnover: Companies with strong EVPs experience significantly lower turnover rates, leading to substantial cost savings. ​
• Enhanced Engagement: Employees who resonate with their organization’s EVP are more engaged, productive, and committed.​
• Attraction of Top Talent: A clear and appealing EVP differentiates the company in the job market, making it a magnet for high-caliber candidates.​

Action Steps for CHROs

To revitalize the EVP:

1. Conduct Employee Surveys: Gather insights to understand what current and prospective employees value most.​
2. Align with Organizational Goals: Ensure the EVP reflects the company’s mission, vision, and strategic objectives.​
3. Communicate Transparently: Clearly articulate the EVP across all platforms, from recruitment materials to internal communications.​
4. Measure and Iterate: Regularly assess the effectiveness of the EVP and make adjustments based on feedback and changing workforce dynamics.​

By proactively redefining the EVP, CHROs can create an environment where employees feel valued, understood, and motivated to contribute to the organization’s success.

Compunnel’s Perspective: Talent Alignment, Not Just Acquisition

For years, the talent conversation was dominated by acquisition—finding, attracting, and onboarding at scale. But as the nature of work evolves, a new mandate is emerging: alignment. At Compunnel, we’ve seen this shift firsthand. Organizations aren’t struggling because they can’t find people. They’re struggling because the people they’ve already hired are no longer in roles that reflect who they’ve become.

When career regret creeps in, it’s rarely because someone lacks the skills to succeed. More often, it’s because the work no longer feels meaningful, the path forward feels unclear, or the learning curve has flattened out. Our work with enterprises across industries has revealed a common pattern: retention suffers not from the absence of opportunity, but from a lack of visibility into it.

That’s why our focus is moving beyond talent delivery to what we call intent-matching—a model that prioritizes internal mobility, personalized skill journeys, and role redesigns based on both organizational needs and individual aspirations.

Through intelligent skills mapping, AI-powered mobility dashboards, and bespoke L&D pathways, we help organizations build infrastructure where employees don’t just stay—they evolve. This isn’t about reshuffling existing teams or repackaging job titles. It’s about giving your people permission and pathways to grow, right where they are.

The payoff? Teams that feel seen. Leaders who stop managing disengagement and start unlocking potential. And organizations that don’t just retain talent, they reengage it.

Conclusion: It’s Not Too Late to Fix the Regret Loop

Career regret doesn’t begin with a resignation letter—it begins in silence. In the pause before a camera turns on. In the eye-roll at a calendar invite. In the internal question of “Does this still matter?” For organizations, the cost of ignoring that silence is steep. Disengaged employees don’t just slow down output; they quietly dismantle the very momentum you worked to build.

But the good news is: this isn’t irreversible. Organizations that recognize regret early—and treat it as a signal rather than a symptom—have the opportunity to turn uncertainty into alignment. The most forward-thinking CHROs are not just keeping people—they’re reawakening ambition. They’re creating ecosystems where employees don’t have to leave to grow, where paths are shaped around potential, not policy, where careers evolve with the company, not away from it.

You don’t need another retention strategy. You need a rethink. One that moves from containment to conversation. From metrics to meaning. From attrition management to aspiration alignment.

If you’re ready to build a workplace where no one has to choose between staying and growing, let’s start the right conversation—before someone else does. – Connect with our Talent Strategy Experts.

FAQs

• What is career regret, and why is it increasing in 2025?
  Career regret refers to dissatisfaction with one’s chosen career path. It’s rising due to misaligned roles, lack of growth, and evolving workforce expectations post-pandemic.
• How does career regret impact organizational performance?
  It leads to disengagement, reduced innovation, and poor team dynamics—all of which quietly erode business performance long before attrition is visible.
• Why aren’t traditional retention strategies working anymore?
  Because they focus on keeping employees in place, rather than enabling growth. Today’s workforce values alignment, autonomy, and visible progression.
• What can CHROs do to prevent career regret internally?
  Invest in predictive metrics, enable internal job mobility, personalize L&D, and update your EVP to reflect purpose, not just perks.
• How can Compunnel support organizations facing retention challenges?
  By helping companies realign talent through skills mapping, personalized learning, and internal growth pathways—before regret turns into resignation.