In a year defined by economic uncertainty, one thing is clear: keeping employees has become mission-critical. Gallagher’s 2025 U.S. Talent Benchmarks Report, based on insights from more than 4,000 employers, reveals that retention now ranks just behind revenue growth as an organizational priority. And the way companies engage their people is shifting dramatically.
Career Growth Takes the Top Spot
For the first time, “career growth pathways” outrank trust in leadership as the primary driver of employee engagement. Translation: workers are less swayed by charismatic execs and more motivated by whether they see a future for themselves inside the company.
“Employees are demanding agency and opportunities for self-improvement,” said John Tournet, U.S. CEO of Gallagher’s Benefits & HR Consulting Division. “Leaders who fail to adapt will find themselves stuck in a cycle of attrition and recovery.”
That finding signals a strategic pivot for HR and business leaders who’ve historically leaned on top-down trust to sustain engagement. Today, the battle for talent may hinge on career mapping and upskilling opportunities rather than speeches from the corner office.
The Burnout Gap
Gallagher’s report also exposes a worrying disconnect: 67% of employers admit stress and burnout are hurting their business, yet only 24% provide mental health training for managers. Even fewer (45%) say managers are prepared to refer employees to professional resources.
Some companies are testing fixes like meditation programs (32%), extra mental health days (28%), or wellness rooms (18%). But without frontline manager training, most efforts amount to band-aids. With burnout consistently ranking as a top driver of turnover, this gap represents both a risk and a competitive differentiator.
Inclusion & AI: Progress, With Caveats
Diversity and inclusion remain on the agenda for most organizations—74% of employers say they’re actively pursuing I&D initiatives, with large enterprises leading the way. Interestingly, AI is emerging as a tool to bolster fairness, from reducing bias in recruitment to customizing engagement strategies.
But adoption isn’t complete. Only 24% of organizations embed inclusive behaviors into daily roles through training, raising questions about whether AI insights are being matched with human action. Tournet warns that AI is a double-edged sword: “Left unchecked, it could perpetuate bias. But when paired with human creativity and empathy, AI can elevate equity, fairness, and connection in ways we’ve never seen before.”
Why It Matters
The big picture is unmistakable: retention is no longer just about pay and perks. Career growth, wellbeing, and inclusion now sit at the center of employee expectations. Companies that invest in intentional engagement strategies will not only keep their top performers but also build resilience in a volatile market.
For HR leaders, the Gallagher report reads like both a wake-up call and a roadmap: rethink engagement, empower managers, and use AI responsibly—or risk losing talent to organizations that do.
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