Poor Talent Retention Remains a Major Challenge for Employers
A new talent benchmark study from Gallagher reveals that poor employee retention continues to hinder business growth, with nearly two-thirds of employers reporting annual turnover rates of 10% or higher in 2025. The report highlights the growing impact of workforce instability on productivity and operational costs, as well as increasing pressure for HR departments to address these challenges effectively. The study also notes that while AI adoption is expected to rise significantly by 2028—73% of employers plan to increase usage—the biggest barrier remains employee trust. Employers are struggling with the balance between growth ambitions and workforce capacity constraints, as only half expect headcount increases despite 61% projecting revenue gains. Additionally, many companies have not yet acted on feedback from engagement surveys conducted in recent years, contributing to disengagement that may delay AI implementation success. The report emphasizes the need for clear communication, strong governance, and practical support during technological transitions.
Topics: AI in HR employee retention organizational growth workforce turnover