Gallagher's 2026 US Talent Benchmarks report highlights how turnover, workforce capacity constraints and AI-driven change are shaping organizational effectiveness
ROLLING MEADOWS, Ill., Sept. 9, 2026 /PRNewswire/ -- Workforce challenges remain top of mind as employers pursue growth with constrained teams, elevated turnover and increasing pressure to adapt to new technologies, according to Gallagher's 2026 US Workforce Trends Report – Talent Benchmarks. Based on responses from more than 3,700 US employers, the report examines the trends influencing employee engagement, retention and organizational effectiveness.
Among the report's most notable findings:
- Retention has become a business challenge, not just an HR concern. Nearly two-thirds (63%) of employers reported annual turnover rates of 10% or higher in 2025.
- 61% of employers anticipate revenue growth by 2027, while only 50% expect workforce headcount to increase; a gap that highlights growing workforce capacity pressures.
- More than half (57%) of employers conducted an employee engagement survey in 2024 or later, yet many are still working to turn employee feedback into meaningful action.
- AI use in HR is expected to expand, with 73% of employers likely to increase adoption by 2028.
- Even as AI adoption grows, trust remains a challenge. Nearly one-third (29%) of employers cite concerns about eroding employee trust as a barrier to adoption.
"The data show that many organizations are navigating a difficult balancing act," said John Tournet, US CEO of Gallagher's Benefits & HR Consulting Division. "Business leaders are pursuing growth while managing cost pressures, workforce capacity constraints and retention challenges. Organizations that succeed will be the ones that focus on the fundamentals: helping managers lead effectively, creating realistic workloads and ensuring employees understand how their work contributes to organizational goals."
Employers are preparing for a future in which AI plays a larger role in how work is performed and decisions are made. While 71% of employers have either fully operationalized AI or implemented it in parts of the business, the findings suggest successful adoption will require clear communication, strong governance and practical support for employees and managers.
"As AI becomes more integrated into day-to-day work, organizations are recognizing that technology alone isn't enough," added Tournet. "The focus is increasingly shifting from implementation to helping employees and managers use AI with confidence, strengthen decision-making and support more effective ways of working."
Additional findings from the report include:
- Retaining talent ranks as a top HR priority for 57% of employers and a top operational priority for 39%, reflecting the growing business impact of workforce turnover.
- Manager effectiveness remains one of the strongest drivers of employee engagement, with organizations focusing on clearer goal-setting, transparent communication and more timely feedback.
- Nearly three-quarters of organizations that have implemented AI are measuring return on investment, though employers expect it will take an average of 28 months for AI returns to outweigh implementation costs.
- Data privacy and security remain the top AI concern, cited by 72% of employers, while only 45% have conducted ethical impact assessments related to AI use.
ABOUT THE REPORT
Gallagher's 2026 US Workforce Trends Report – Talent Benchmarks reflects survey responses from 3,717 US employers collected from January through March 2026 and provides benchmarking data and insights across employee engagement, AI and organizational effectiveness.
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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SOURCE Gallagher
