Authors:
Chris Dustin
Kevin Roberts
Want to boost employee engagement and keep top talent from walking out the door? A workplace that prioritizes employee growth and professional development is the leading driver of engagement — and the second most impactful driver of retention — according to data from Gallagher's 2025 Talent Benchmarks report.
In today's competitive talent market, organizations that invest in their people don't just attract attention — they build loyalty. A culture of employee development sends a clear message: we're committed to your future. That commitment pays off in higher employee satisfaction, stronger engagement and long-term retention.
So how can employers create such an environment? The following five steps serve as a practical guide to building employee development and an engaged culture where people thrive.
1. Create clear career pathways
Employees want more than just a job — they want a future. When organizations provide transparent career progression frameworks, they empower employees to envision long-term growth within the company.
This clarity not only boosts motivation and engagement but also strengthens retention by showing employees that the organization supports their ambitions. Career pathways help reduce uncertainty, align individual goals with organizational needs and foster a sense of purpose and direction.
Steps to support career pathways
- Develop role-specific growth maps.
- Hold regular career development conversations.
- Promote from within when possible.
2. Invest in learning and development
Continuous learning is key both to personal and professional growth. Providing employees with opportunities to develop their skills not only boosts performance and engagement but also prepares future leaders to take on greater responsibilities.
Notably, the
Talent Benchmarks report finds that 70% of employers already offer leadership development training, and 65% offer employee development training — recognizing that developing internal talent is more cost-effective than external hiring. By prioritizing employee development, leaders signal a commitment to workforce success and build a resilient, future-ready organization.
Steps to support learning and development
- Encourage tenured colleagues to mentor less experienced employees.
- Offer formal learning programs that include structured courses and workshops.
- Provide access to online learning platforms or virtual training.
3. Encourage stretch assignments
Growth often happens outside of our comfort zones. Stretch assignments — projects or roles that challenge employees beyond their current skill set — are a powerful way to accelerate development, build confidence and uncover hidden potential.
These opportunities allow employees to apply their strengths in new contexts, develop leadership capabilities and gain exposure to different parts of the business. When leaders assign these opportunities thoughtfully, employees often find stretch roles energizing and deeply rewarding. Stretch assignments also help organizations identify future leaders and develop a culture of agility, trust and innovation.
How to support stretch assignments
- Develop cross-functional projects.
- Create temporary leadership roles.
- Establish special task forces or innovation teams.
4. Foster a culture of feedback and coaching
Constructive feedback and regular coaching help employees understand their strengths and areas for growth. When employers prioritize feedback, they create an environment where employees understand expectations and feel supported and empowered to improve. In fact, our data shows that 69% of employers deliver ongoing performance feedback , recognizing that regular coaching helps build stronger teams and drives long-term development.
How to support a culture of coaching and feedback
- Train managers to deliver timely, actionable feedback.
- Encourage peer-to-peer recognition and support.
- Conduct regular one-on-ones focused on development.
5. Support internal mobility
Career growth isn't always a straight line upward — sometimes it's a lateral move that unlocks new skills, fresh perspectives and renewed engagement. Encouraging internal mobility helps employees explore different roles, departments or functions. Such exploration can lead to more fulfilling career paths and stronger cross-functional collaboration. Internal mobility also demonstrates that the company values its people and is willing to invest in their long-term potential. Organizations that embrace internal mobility often see higher retention rates, as employees feel empowered to grow without needing to leave.
Creating a growth-oriented workplace is an ongoing commitment. The rewards are substantial: more engaged employees, stronger teams and a resilient organization prepared to thrive in the future.
How to support internal mobility
- Post all job openings internally first.
- Allow job shadowing or short-term rotations.
- Celebrate internal transfers as career wins.
Gallagher can help
At Gallagher, we help you go beyond listening — we help you act. Our experienced consultants work with you to uncover what truly drives retention and engagement, then we help you build a strategy that tackles both.
Let's create a workplace where people don't just show up — they stay, thrive and grow. Connect with a Gallagher specialist today and take the next step toward a more resilient, people-powered future.
CONTACT US
