ROLLING MEADOWS, Ill., Sept. 5, 2024 /PRNewswire/ -- With an increased focus on employee retention amidst a competitive job market and continued economic complexity, Gallagher's 2024 U.S. Career Wellbeing Report found that career development opportunities highly influence both employee engagement and retention. Although employers understand the importance of focusing on career wellbeing, only 35% reported an increase in focus, with many prioritizing the physical (42%), financial (47%), and emotional (64%) wellbeing dimensions instead.

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"Hiring and retaining talent is one thing, but driving better organizational outcomes requires effective engagement solutions," said William F. Ziebell, CEO of Gallagher's Benefits & HR Consulting Division. "If employees are given more opportunities to develop and advance their knowledge and skills from their employer, they're more likely to gain a sense of purpose in their work leading to increased motivation, engagement and buy-in."

Gallagher's study, which draws data and insights from more than 3,500 organizations across the U.S., identifies current and emerging trends to help employers optimize their career wellbeing investments by highlighting employee engagement and diversity, equity and inclusion (DEI).

Support for career development, growth, and mobility has been a steady driver of engagement and retention, and it still is — now more than ever.

More employers are recognizing the importance of developing and implementing a consistent engagement approach, as nearly 3 in 5 (57%) have a formal strategy for improving employee engagement—up 9 points from 2022. Nevertheless, it's important for employers to understand that drivers of engagement change with circumstances.

Service awards or employee recognition are commonly offered by 81% of employers—up from 75% in 2023. There are many more tactics, however, that can help build engagement. In recent years, neither pandemic setbacks, economic disruptions, nor financial turbulence have diminished employees' interest in opportunities to develop and grow their careers. Clear goals, a sense of purpose and direction motivate employees and enhance their experience.

While 43% of employers support employees in developing and pursuing a career path, less than a fifth (19%) strive to offer interesting and challenging work. To motivate employees to stay engaged, organizations should consider better prospects for increased responsibilities, new challenges and promotions.

More employers are embracing the value of DEI but are slow to fully integrate their practices.

Across all types of organizations, the importance of integrating DEI into the people strategy is gaining recognition. More leaders acknowledge its influence on workplace culture and feel a growing urgency to respond to key stakeholders' expectations. However, few have actually completed the integration of DEI policies, practices, and programs within their organization.

To bridge the gap between intention and action, employers are taking a more holistic approach to DEI. Nearly half (45%) are designing initiatives to align with the core values of the organization—up 4 points from 2023. DEI needs to be embraced as a philosophy for successful integration, not treated as a program.

"A committed employee engagement strategy that includes DEI can strengthen culture and retention," said Ziebell. "And consistency in these aligned approaches will promote trust and credibility, ensuring that the employee experience remains a top organizational priority."

ABOUT THE 2024 U.S. CAREER WELLBEING REPORT
Gallagher's 2024 U.S. Career Wellbeing Report is part of the Workforce Trends Report Series, covering employee engagement and DEI. It presents recent findings on current and emerging trends to help employers optimize their career wellbeing investments. Other reports in the series center on a specific aspect of employee wellbeing, including physical, emotional, and financial. 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 2024. A total of 3,552 organizations across the U.S. participated. Findings are broken out by region, organization size and ownership structure for peer comparison.

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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