Employee retention is the top priority this year, according to Gallagher’s 2023 US Workforce Trends Report Series: Organizational Wellbeing. Retention will be key to growth in the near future, as most employers expect increases in both revenue (63%) and headcount (57%) by 2024.
More than half of employers (51%) saw turnover of at least 15% in 2022. To keep employees around in 2023, 78% of employers increased salaries and 40% increased variable compensation, including expanding medical benefits and wellbeing initiatives.
“An organization’s ability to retain employees ultimately impacts its bottom line because hiring and training a new employee usually costs much more than retaining someone who is already on the payroll,” William F. Ziebell, CEO of Gallagher’s Benefits & HR Consulting Division, said in a press release. “The workforce makeup and employee needs are evolving at a rapid rate. As a result, employers have to consider more comprehensive benefits and compensation offerings that can enhance the overall employee experience.”