Notwithstanding the current tighter market for job-seekers, employers are struggling with higher turnover rates even as they prioritize talent retention, according to Gallagher’s 2025 Workforce Trends Report on Talent Benchmarks.
Why it matters: As U.S. policy shifts against employer-sponsored immigration and diversity and inclusion initiatives continue to create barriers to talent access, the need for robust employee engagement and talent retention strategies is increasingly paramount.
Talent retention the top HR priority amongst high turnover: In a survey of over 4,000 U.S. employers, nearly 2 in 3 experienced turnover rates of at least 10% or more in 2024, and nearly half reported rates over 15%. Unsurprisingly, a majority of respondents ranked talent retention as their top HR priority, and nearly half ranked talent retention as the second highest operational priority overall, behind only revenue or sales.
Employee engagement and career development are essential for talent retention: The report highlighted the importance of strong employee engagement and providing career pathway and development opportunities in order to ensure top talent sticks around.
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2 in 3 respondent companies reported concerns over the impact of stress and burnout on employees and talent retention.
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Keys for building engagement retaining top talent include providing career growth pathways, opportunities for self-improvement, and trust and confidence in senior leadership.
DEI still a necessary HR priority: Despite the Trump administration’s war on corporate DEI initiatives, nearly three-quarters of respondents to Gallagher’s survey reported deploying multiple DEI initiatives.
The report emphasized the importance of enterprise-wide integration of DEI initiatives in order to boost talent recruitment, development, and retention, as well as employee engagement.
