In 2025, American employers appear to be aligned in their concerns about the future of the workforce. According to a recent survey conducted by Illinois-based risk management firm Gallagher, over 4,000 business leaders are grappling with similar issues that reflect broader social, economic, and political dynamics. While revenue and sales remain constant priorities, three non-financial concerns—worker retention, burnout, and diversity, equity, and inclusion (DEI)—have risen to the top of employers’ agendas. Together, these concerns reveal the evolving nature of work and underscore the need for proactive strategies to sustain productivity, morale, and long-term success.
Retention in a Changing Workforce
Employee retention stands out as one of the most pressing challenges of the year. A shift in generational values is driving this trend, particularly as Gen-Z increasingly enters the workforce. Unlike their predecessors, Gen-Z employees prioritize mental health, flexibility, and work-life balance. Many reject the traditional “career ladder” mentality and are more willing to leave jobs that undermine their well-being—even for reasons as seemingly small as the anxiety-inducing “Sunday Scaries.” For employers, this generational shift requires not only an adjustment in workplace culture but also a rethinking of how to provide meaningful career development and engagement opportunities that align with workers’ expectations.
The Rising Tide of Burnout
Closely tied to retention is the issue of burnout, which continues to intensify amid economic uncertainty, political polarization, and rapid changes in the labor market. Gallagher’s data shows that two-thirds of employers are highly concerned about worker mental health. The impacts of stress and burnout are not limited to individuals; they ripple outward, damaging morale, productivity, and profitability. However, the survey revealed a troubling gap: while employers recognize the seriousness of the problem, few are implementing adequate solutions. Only 24 percent of organizations provide mental health training for managers and HR professionals, leaving leaders ill-prepared to support their staff. This lack of preparation not only hampers intervention efforts but also risks exacerbating turnover and disengagement.
Diversity, Equity, and Inclusion: A Stabilizing Force
The third key concern—DEI—reflects a commitment to fostering stability and resilience through inclusivity, even in a politically charged environment. Despite national debates and opposition to DEI policies in some political spheres, Gallagher’s survey found that 74 percent of employers are pursuing diversity initiatives this year, including 67 percent of small businesses. Organizations see DEI as more than a moral imperative; they view it as a competitive advantage in attracting and retaining talent. Technology, especially artificial intelligence, is being deployed to reduce bias in hiring and decision-making. Yet, much like with mental health initiatives, companies face an implementation gap: only 24 percent provide training that integrates inclusive behaviors into daily roles. Without such cultural reinforcement, DEI risks becoming a symbolic gesture rather than a transformative practice.
What Employers Can Do
Taken together, these concerns suggest several practical steps for organizations seeking to remain resilient in 2025 and beyond. First, companies should prioritize long-term retention by building workplace cultures that adapt to the evolving expectations of younger generations. Second, employers must treat burnout as a systemic issue, investing in proactive mental health support and equipping managers with the tools to intervene early. Finally, businesses should embrace DEI not only as a recruitment strategy but also as an embedded cultural practice, supported by robust training and measurable outcomes.
In conclusion, the Gallagher survey highlights that employers across the country are facing the same core challenges: retaining talent, preventing burnout, and promoting inclusion. Addressing these issues is no longer optional—it is essential for sustaining productivity, fostering trust, and securing long-term success. While the details of each company’s strategy may differ, the underlying message is clear: the workforce of 2025 demands a new level of adaptability, empathy, and commitment to holistic well-being.