Insurance
Home›Insurance›Industry & Deals›Turnover above 10% in 2025 pressures employer retentio…
Turnover above 10% in 2025 pressures employer retention and engagement
Gallagher said 26% of surveyed employers saw 2025 turnover come in higher than planned, while 44% reported turnover rates of at least 15%.
Retention and workforce readiness tied to artificial intelligence are shaping talent strategy in 2026, according to Gallagher’s 2026 Workforce Trends Series report on talent benchmarks.
The report, based on a U.S. Benefits Strategy and Benchmarking Survey fielded from January to March 2026 among 3,717 organizations, found that 63% of employers reported annual turnover of 10% or higher in 2025, and 44% reported turnover rates of at least 15%.
Gallagher also reported that 26% of respondents said turnover came in higher than planned. The company characterized retention as a productivity, continuity and cost-management concern, with almost three in five employers ranking it a top HR priority and roughly two in five ranking it among top operational priorities.
On engagement, Gallagher said 57% of employers conducted an employee engagement survey in 2024 or later, while 60% said they have a formal strategy to improve engagement, with adoption varying by company size. Among employers actively working to improve engagement, the most common tactics were defining clear performance goals (45%), communicating in ways that foster trust and confidence (45%), and providing timely, constructive feedback (42%).