Workforce Challenges Continue to Impact Employers' Growth Strategies
Gallagher's 2026 US Workforce Trends Report highlights ongoing workforce challenges as employers aim for growth amid high turnover, capacity constraints, and the integration of AI. Nearly two-thirds (63%) of surveyed employers reported annual turnover rates at or above 10% in 2025, while only half expect headcount increases by 2027 despite most anticipating revenue gains. This discrepancy signals growing pressure on workforce capacity. The report also notes that AI adoption is expected to rise significantly, with 73% of employers likely to increase its use by 2028. However, trust and ethical concerns remain barriers for some organizations. Employers are focusing more on manager effectiveness as a key driver of employee engagement while grappling with the need to turn feedback into action. John Tournet, US CEO of Gallagher's Benefits & HR Consulting Division, emphasized that successful growth will depend on strong leadership, realistic workloads, and clear communication about employees' roles in organizational goals. The report underscores the importance of balancing technological adoption with employee support.
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Topics: AI in HR employee engagement organizational effectiveness workforce turnover