New Report Shows Employee Retention Outranks Almost Everything Else as U.S. Employers Tackle Burnout

Rhea-AI Summary

Gallagher (NYSE:AJG) has released its 2025 U.S. Talent Benchmarks Report, surveying over 4,000 U.S. employers across industries. The report reveals that employee retention has become the second-highest operational priority after revenue growth. A significant shift shows "career growth pathways" surpassing "trust in leadership" as the primary driver of employee engagement.

The study highlights a concerning burnout crisis, with 67% of employers worried about stress impact, yet only 24% provide mental health training for managers. Additionally, 74% of employers are implementing inclusion and diversity initiatives in 2025, with larger companies (84%) leading the charge. The report also notes the emergence of AI as a tool for advancing inclusion, though only 24% of employers currently train employees on embedding inclusive behaviors.

Positive

• None.

Negative

• Only 24% of employers provide mental health training for managers and leaders
• Less than half (45%) of managers are well-equipped to refer employees to mental health services
• 67% of employers are concerned about stress and burnout impact
• Only 24% of employers train employees on embedding inclusive behaviors

Many also remain committed to I&D, while some turn to AI for inclusive practices

ROLLING MEADOWS, Ill., Sept. 23, 2025 /PRNewswire/ -- 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.

ABOUT THE 2025 U.S. TALENT BENCHMARKS REPORT
Gallagher's 2025 U.S. Talent Benchmarks Report is part of the organization's 2025 Workforce Trends Report Series, which highlights survey results on employee engagement as well as I&D objectives. Other reports in this series cover benefits, financial solutions, best-in-class employers and employee communications.

The series is designed to assist employers in developing and optimizing a people strategy focused on holistic wellbeing, enabling their employees and families, their organization and their communities to thrive. The data and insights are compiled from a variety of Gallagher benchmarking surveys conducted each year. In this report, they're based on the results of the U.S. Benefits Strategy & Benchmarking Survey, gathered from January to March 2025. A total of 4,035 organizations across the U.S. participated.  

ABOUT GALLAGHER
Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Contact:       
Mary Schwartz, Gallagher
847.378.5893
mary_schwartz@ajg.com

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SOURCE Gallagher

FAQ

What are the key findings of Gallagher's 2025 U.S. Talent Benchmarks Report?

The report reveals that employee retention is the second-highest operational priority, with career growth pathways becoming the primary driver of employee engagement. Additionally, 67% of employers are concerned about burnout impact, and 74% are implementing I&D initiatives.

How are companies addressing employee burnout according to the Gallagher 2025 report?

Companies are implementing various measures including stress management programs (32%), mental health time off (28%), and onsite meditation rooms (18%). However, only 24% provide mental health training for managers.

What percentage of employers are implementing I&D initiatives in 2025?

74% of employers are implementing inclusion and diversity initiatives in 2025, with large employers leading at 84% compared to smaller companies at 67%.

How are companies using AI for inclusion and diversity according to Gallagher's report?

Companies are using AI to reduce bias in recruitment, tailor engagement practices, and support equitable decision-making. However, only 24% of employers train employees on embedding inclusive behaviors.

What is the main driver of employee engagement in 2025 according to Gallagher?

Career growth pathways have become the primary driver of employee engagement, overtaking traditional factors like trust and confidence in senior leadership.