In a workplace climate shaped by economic uncertainty, Gallagher’s 2025 U.S. Talent Benchmarks Report reveals that employee retention has become a top operational priority — ranking second only to growing revenue or sales.
The report, based on insights from over 4,000 U.S. employers across industries, uncovers significant developments in how organizations are approaching employee engagement and inclusion.
One of the most notable findings is that “career growth pathways” have overtaken “trust and confidence in senior leadership” as the leading driver of employee engagement. Employees are increasingly prioritizing personal agency and opportunities for self-improvement, indicating a departure from traditional, leadership-centric engagement strategies.
“We’re seeing a fundamental shift in what employees value — and it’s forcing organizations to rethink just about everything so they can keep their talent,” said John Tournet, U.S. CEO of Gallagher’s Benefits & HR Consulting Division. “More than ever, trust and overall confidence in leadership is having the biggest impact on employee engagement and ultimately retention. Leaders who fail to adapt and hone their own skills will find themselves in a constant cycle of attrition and recovery, which is no way to compete and grow.”
Burnout Crisis Demands New Approaches
The report also highlights troubling gaps in organizational preparedness to address mental health challenges. Two-thirds of employers (67%) are concerned about the impact of stress and burnout on their organization, yet less than a quarter (24%) provide mental health training for managers, leaders or HR. Additionally, less than half (45%) report their managers are well-equipped to refer employees to mental health services, leaving a critical gap in frontline support.
Some organizations are taking proactive measures — such as offering stress management, resiliency or meditation programs (32%), time off for mental health or burnout (28%), and onsite meditation rooms (18%) — but the lack of comprehensive manager training underscores the need for more robust strategies to combat burnout effectively.
Inclusion and Diversity Efforts Persist and Evolve
Nearly three-quarters of employers (74%) are implementing inclusion and diversity (I&D) initiatives in 2025. Large employers (84%) are more likely to do so than small ones (67%), viewing I&D as a stabilizing force during economic uncertainty. While organizations are refocusing their efforts, the fundamentals of I&D remain intact.
Artificial intelligence (AI) is emerging as a key tool in advancing inclusion, with employers leveraging it to reduce bias in recruitment, tailor engagement practices and support equitable decision-making. However, only 24% of employers train employees by embedding inclusive behaviors into their daily roles, presenting an opportunity to align AI-driven insights with human action.
“AI has the power to amplify inclusion, but only if it’s implemented thoughtfully,” added Tournet. “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.”
Gallagher’s 2025 U.S. Talent Benchmarks Report demonstrates that organizations investing in intentional engagement, proactive wellbeing support and inclusive practices are best positioned to attract and retain top talent. These strategies not only build trust but also foster resilience for long-term success.
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