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Authors: Angela McDermott Morgan Todd Ledford

It's a dynamic and challenging talent landscape for organizations in the US. The shortage of skilled labor remains a key concern, which places intense pressure on employers to rethink how they attract, retain and support their people.

Offering a competitive salary or a regular benefits package is no longer enough — employees today expect more. They seek purpose, flexibility and leadership that engages them in workplaces that reflect their values and lifestyles.

To meet these expectations and build resilient workforces, businesses must embrace both the art and the science of talent management. The former lies in cultivating empathetic, human-centered cultures, while the latter is about leveraging data, technology and strategic insight.

When working in harmony, the two elements can transform not only the employee experience but also organizational performance.

Shaping the talent management landscape: The drivers of retention

Employee retention has ascended to the forefront of organizational priorities. According to the 2025 US Benefits Strategy & Benchmarking Survey, 59% of employers ranked retaining employees as their top HR priority. Beyond competitive salaries, employees increasingly value work-life balance, robust benefit offerings and a feel-good company culture. Here are some core elements of a successful talent management strategy:

  • Work-life balance: The rise of hybrid and remote work has permanently changed employee expectations. Hybrid models are the preferred option for most employees — they don't want to be fully remote or in the office five days a week. They want balance and autonomy — 40% of employers currently offer a hybrid model for their people.
  • Authentic company culture: Employees seek information about prospective employers through their career sites, social channels and employee review platforms. A culture of engagement, transparency and shared values is essential — employees want to feel they belong and are valued.
  • Human-centric leadership: Leaders are paramount in fostering retention. Influencing the everyday work experience, the best leaders see their people as whole individuals with lives, aspirations and needs. Only 24% of employers currently offer mental health training for their managers and HR. However, training managers can help ensure workloads are manageable and fair, and employees get appropriate access to resources, counseling and stress management programs.
  • Understanding intergenerational values: Younger cohorts prioritize purpose, flexibility and engagement. Tailoring the employee value proposition (EVP) to reflect these shifts is vital to retention.

Organizations are making a significant push for succession planning at all leadership levels, from the C-suite down. This planning is crucial for building an internal talent pipeline to address labor shortages and reduce reliance on external hiring.

When employees see how they can advance within the organization, they're more likely to feel engaged in their work.

Employer branding: A magnet to attract top talent

Employees don't just want to see how they can grow within your organization — they want to see how the organization's mission aligns with their beliefs. This desire is why a compelling employer brand is essential for attracting top talent in a highly competitive job market. A strong EVP clearly articulates why a company is a desirable workplace and how it differentiates itself from competitors.

Incorporating "day in the life" stories and employee testimonials helps connect with potential candidates on a personal level. Crafting job descriptions as marketing pieces rather than generic descriptions and clearly summarizing employee benefits further enhances the employer brand.

A positive candidate experience is key to maintaining a strong reputation in today's digital world. Consistent and transparent communication throughout the interview process — even with unselected candidates — helps maintain a positive brand reputation.

“
We often receive emails from candidates thanking us for the positive experience they had during the hiring process, even when they weren't chosen for the position. This builds goodwill and can even turn rejected candidates into future applicants or brand advocates.
Angela McDermott, national managing director, HR Organizational And Effectiveness practice, Gallagher

Evolving employee value proposition and benefits

Today's workforce demands a clear, values-driven EVP. This EVP includes competitive compensation but goes far beyond that. The younger generation, in particular, expects their employer to offer purpose, flexibility and mental health support. They're not afraid to walk away if they don't get these things.

Beyond traditional medical and dental, emerging must-have employee benefits have increasingly come into play. These benefits include mental health support that expands beyond employee assistance programs (EAPs) to integrate comprehensive mental health coverage into medical plans, women's fertility benefits, pet insurance, maternity and paternity leave, and other forms of family support.

Employee benefits need to be accessible, equitable and easy to understand. Formats like short explainer videos and Zoom walkthroughs can drive better engagement and usage.

Once you understand an individual's attributes in the workplace and beyond, you can customize your approach and communication to the person. This communication can significantly impact their success and help them perform at their best.

Technology's role in HR: Enhancing the human element

AI is revolutionizing HR operations by streamlining recruitment and enhancing employee support. AI helps automate admin-heavy tasks like resume screening and interview scheduling, which frees up time for deeper human interaction.

Beyond admin, AI and data analytics can offer powerful insights:

  • Predictive analytics: Identify turnover risks early, helping leaders act before it's too late.
  • Customized onboarding: Tailor the experience based on role, location or employee type.
  • Benefits optimization: Understand utilization and gaps to ensure benefit offerings align with employee needs.

If your systems are outdated, employees feel unsupported. A streamlined, interactive benefits enrollment platform makes a real difference. However, it's crucial to remember that the human element must always remain a constant, ensuring a personalized and empathetic approach.

Immigration's impact on global talent management strategies

Visa restrictions and compliance hurdles are narrowing global talent pipelines. This situation pushes organizations to diversify their talent acquisition strategies. They can achieve this diversification by:

  • Building stronger partnerships with educational institutions
  • Investing in upskilling programs to develop local talent
  • Moving away from rigid degree requirements for roles, focusing instead on skills and experience
  • Investing in internal development and mobility for employees

Emphasizing and exploring remote work opportunities can help mitigate visa-related concerns and tap into a broader global talent pool without geographical constraints. This approach has proven successful for some organizations, allowing them to scale quickly by hiring beyond traditional geographic borders.

Overcoming geographic hiring challenges in the education sector

A liberal arts college in rural Vermont faced significant talent acquisition and retention issues due to seasonal competition. Gallagher partnered with them to overhaul their hiring strategy.
Our approach included:
  • Assessing local competition and creating tailored hiring plans
  • Adhering to diversity recruiting standards and exploring immigrant programs
  • Proactively sourcing talent, including a mass mailing to licensed electricians for a critical role
  • Refining job descriptions with the college's HR to highlight benefits and align with existing marketing efforts
Through a dedicated team of talent acquisition generalists, we successfully sourced and filled a range of executive and hourly positions, helping the college overcome its unique geographic hiring hurdles.

Flexibility: The new frontier of work

Hybrid work is the most effective model for retention and productivity. Many job seekers prioritize flexibility, with hybrid or fully remote options being highly sought after. Companies that insist on a full-time return to office will face significant challenges in attracting and retaining talent. In such cases, employees are likely to explore other options.

Beyond flexibility, the social and cultural aspects of the office are also being re-evaluated. Some younger employees, particularly Gen Z, appreciate the office as a social outlet. For fully remote companies, purposeful in-person gatherings, like quarterly meetings or critical project sessions, are vital for team cohesion and collaboration.

“
Sectors like manufacturing and patient care face challenges, where on-site presence is essential for producing goods and serving patients. Finding ways to create flexible scheduling mechanisms for employees working in these sectors is crucial to differentiating your offering and attracting talent.
Morgan Todd Ledford, managing director, leadership advisors practice, Gallagher

Manufacturing and patient care organizations need to implement scheduling software and other innovative strategies to offer employees more freedom within clear parameters. It's also vital to ensure adequate work-life balance and sufficient staffing to meet operational demands.

5 ways to make your organization's talent management strategy stand out

  • Combine empathetic and human-centered cultures with data and technology to effectively attract, retain and support your workforce.
  • Create a compelling employer brand, articulated through a strong EVP and positive candidate experience, to attract top talent.
  • Use AI and data analytics to streamline administrative tasks, provide predictive insights and enable customized employee experiences.
  • Rethink job requirements by focusing on skills, potential and learning agility. This focus will attract more diverse candidates.
  • Strengthen talent pipelines by partnering with educational institutions and exploring remote hiring to tap into broader talent pools.

Future-proof your talent management strategy

Organizations that thrive understand talent management. Mastering the blend of art and science will overcome talent challenges and build resilient, productive and innovative future-ready workforces.
Discover how Gallagher's Talent practice can help you secure the right talent for your current and future needs.

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