Newly released data shows that career development opportunities highly influence both employee engagement and retention, according to global insurance broker Gallagher’s 2024 U.S. Career Wellbeing Report.

Although employers understand the importance of focusing on career wellbeing, only 35 percent reported an increase in focus, with many prioritizing the physical (42 percent), financial (47 percent), and emotional (64 percent) wellbeing dimensions instead.

“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 draws data and insights from more than 3,500 organizations across the U.S. to identify 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 continues to be so.

More employers are recognizing the importance of developing and implementing a consistent engagement approach, with nearly 3 in 5 (57 percent) reporting a formal strategy for improving employee engagement—up 9 points from 2022.

Service awards or employee recognition are commonly offered by 81 percent of employers—up from 75 percent in 2023.

Clear goals, a sense of purpose and direction motivate employees and enhance their experience, the report found.

While 43 percent of employers support employees in developing and pursuing a career path, less than a fifth (19 percent) strive to offer interesting and challenging work.

To motivate employees to stay engaged, Gallagher suggested 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, the report found.

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, the report found 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 percent) 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, the report stated.

“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.”

Gallagher’s 2024 U.S. Career Wellbeing Report is part of the Workforce Trends Report Series, covering employee engagement and DEI. 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.