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Authors: Steve Dion Laura Ford

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According to Gallagher research on organizational wellbeing, the combination of training and development is now one of the top five strategic priorities for leaders. Manager effectiveness ranked even higher, tied in first place with improving employee communication.

This shift towards a greater focus on leadership skills signals an ongoing transformation. Organizations that view leadership development as a strategic investment are better equipped to develop resilient teams, retain top talent and promote a culture of wellbeing and high performance.

Rethinking training for today's workforce

It's a challenging time to be a people leader. Shifting priorities, evolving work expectations and changing workplace dynamics demand a fresh approach to leadership: what worked back in 2015 won't always resonate in 2025.

Employees now expect learning that's relevant, ongoing and tied to their personal career growth. Yet many organizations still treat training as a checkbox-ticking exercise.

"Training should be approached like a quality or financial system: nurtured and embedded in the organization," says Steve Dion, national managing director of Leadership and Organizational Development at Gallagher. "When done right, it becomes a lever for cultural transformation and overall business improvement."

In 2025, 70% of US business leaders reported offering leadership development training to their workforce to support employees' career wellbeing, according to the 2025 US Workforce Trends Report: Talent Benchmarks report. Leadership development, done correctly, equips managers with the interpersonal skills required to give more meaningful feedback, support teams and foster healthier work environments. These skills, in turn, helps reduce stress and boost productivity, contributing to a more resilient workforce.

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Training should be approached like a quality or financial system: nurtured and embedded in the organization. When done right, it becomes a lever for cultural transformation and overall business improvement.
Steve Dion, managing director, Leadership Development and Organizational Design, Gallagher

Learning practices with real-world impact

The pandemic has reshaped how organizations approach training, shifting from in-person to virtual and ultimately leading to a powerful blend of both.

So, what works best today? The answer is less about where the training takes place, but is in program content that combines self-discovery, proven methods and real-world application. When these conditions exist, along with a skilled facilitator, effective learning can occur in any format.

Self-paced modules help prepare participants to dive deeper into content that will be discussed and applied during live sessions. In-person formats, when used intentionally, foster informal connections and mindset shifts that virtual settings can't always replicate. Follow-up resources also help participants integrate new skills into their daily routines and serve as important job aids moving forward.

Laura Ford, senior principal consultant at Gallagher, emphasizes the importance of training that's relevant to business scenarios: "True development happens when participants are actively engaged and can share both successes and challenges from the workplace. By also using post-session exercises and encouraging discussions with their leaders, learning becomes a continuous journey, one in which they apply what they've learned and foster deeper peer relationships and discussions."

Beyond generational differences

Employees across all age groups want training that's relevant, practical and personal. The desire to build professional competence, connect with peers and receive development that makes work easier is universal. "All learners look for training that has a 'what's in it for me' component — regardless of their generation," says Dion.

To meet diverse individual and career needs, organizations can benefit from offering flexible training options, ranging from formal leadership programs to peer learning experiences, reverse mentoring and tuition reimbursement. This approach ensures that development opportunities align with career goals and foster a culture of continuous learning.

Leadership development: A confidence builder

Managers shape culture more than any policy or perk — when they're ineffective, the ripple effects are felt across the organization. Leadership development is essential to clarify expectations, build confidence and equip managers with the people skills necessary to meet the demands of their challenging role.

Too often, new leaders are promoted without preparation and left to navigate complex responsibilities alone. The result? Burnout and disengagement. "Leaders who feel insecure in their skills and lack a support system are often faced with indecision and inaction, causing paralysis instead of proactive leadership," explains Ford.

Expectations for more work-life balance are also shifting. More early-career employees often associate leadership responsibilities with a higher risk of burnout. But it doesn't have to be that way. "It's entirely possible to hold a senior-level position without it being overwhelming," Dion explains. "You can be strategic, future-oriented and a great manager without feeling crushed by the weight of the job."

Tying training to promotion prepares future leaders and supports newly promoted managers, which sends a clear message that the organization values effective leadership and cares about its employees.

It's also important to recognize that leadership isn't for everyone. Some employees thrive as individual contributors and may not aspire to manage others. A thoughtful leadership development strategy helps identify those ready to lead, while offering growth opportunities and career paths for all.

Ultimately, effective leadership development empowers managers to take the initiative to drive the performance of their teams, while supporting the emotional wellbeing of their staff and guiding career growth across the organization.

Making training visible and valuable

Training initiatives gain traction when they align with corporate strategy and are seen as critical to achieving organizational outcomes. Branding your leadership programs with a clear identity boosts visibility and signals its importance to the organization.

Awards and certifications validate the quality of the program being offered and reinforce the organization's commitment to growth and learning. They also appeal to employees' natural motivation to achieve and can strengthen both recognition and employer branding. "Formalizing training programs bring a dual benefit: better managers who are certified through training, and a stronger recruitment message to entice new talent," Dion explains.

Executive involvement is also essential, as it helps secure budget and long-term support, as well as showing visible commitment across the organization.

To maximize impact, organizations should communicate training opportunities with the same clarity and enthusiasm as open enrollment. "Employees need to see how each offering connects to their goals and why it's worth their time," explains Ford. "They want to have meaningful conversations with their leaders about career development. When these conversations are backed by training and development programs that align with their goals, the experience becomes a highly valued offering, rather than another task to complete."

A learning journey that teaches and transforms

The stakes today are high: rising healthcare costs, shifting demographics and mental health challenges are prompting employers to adopt holistic people strategies. These strategies need to recognize the interconnected nature of physical, emotional, career and financial wellbeing across their workforce.

As the year draws to a close, organizations have a timely opportunity to reflect on their training and leadership development strategies and prepare for 2026. Aligning learning initiatives with performance cycles, career milestones and succession planning will help deliver relevance and impact.

The most effective programs are intentional, aligned with the employee value proposition and designed to drive engagement and build leadership confidence. As Ford emphasizes, "Learning doesn't happen overnight — it's a journey with touchpoints that form new habits. The goal isn't just to teach but to transform."

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Learning doesn't happen overnight — it's a journey with touchpoints that form new habits. The goal isn't just to teach but to transform.
Laura Ford, senior principal consultant, Gallagher

Training and development are essential to building effective managers, engage teams and create thriving workplace cultures. As organizations look toward 2026, the question is no longer whether to invest in their leaders, but how to do so with purpose and measurable impact.

Case study: Helping frontline leaders show up with confidence and clarity

When a regional grocery chain noticed that their department managers were struggling to transition from peer to leader, Gallagher helped them launch a hands-on, in-person training experience focused on leadership mindset, communication and stress management.
Impact
  • Engagement scores jumped five points in one year
  • Turnover among hourly staff dropped seven percentage points
  • Over 320 leaders trained so far (2024-2025)
Key learning
This initiative aimed at creating a mindset shift across the organization, helping participants evolve from managers to frontline leaders, allowing them to show up with confidence and clarity, which in turn improved team performance and customer experience.

Author Information

Source

1 "The Dynamic Between Stress, Leadership, and Culture," Gallagher, 6 Aug 2025.

Disclaimer

This material was created to provide information on the subjects covered, but shouldn't be regarded as a complete analysis of these subjects. The information provided cannot take into account all the various factors that may affect your particular situation. The services of an appropriate professional should be sought regarding before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.