MANILA, PHILIPPINES -
Media OutReach Newswire - 1 July 2026 -
Aon plc (NYSE: AON), a leading global professional services firm, today released findings for the Philippines from its inaugural
Human Capital Trends Study, highlighting a workforce at a key moment of change.
Organisations in the Philippines are accelerating the adoption of
artificial intelligence (AI) and investing in data-driven capabilities,
supported by strong participation in upskilling programmes. However,
limited availability of AI talent, underdeveloped pay transparency
practices and a widening gap between employee expectations and workplace
experience continue to shape workforce outcomes.
AI Adoption Accelerates
According to the study, the Philippines is keeping pace with global AI
adoption with 72 percent of organisations having already deployed AI or
piloting programmes, signalling continued progress in how organisations
are adopting and applying AI. This progress is supported by continued
investment in workforce development, with 94 percent of organisations
expecting AI to create new roles and reshape skill requirements.
However, only 17 percent of organisations say they can recruit and
retain enough AI-skilled talent, highlighting a gap between AI ambition
and workforce readiness.
"Organisations in the Philippines are taking meaningful steps to prepare
their workforce for the future through AI adoption and skills
investment," said Rahul Chawla, partner and head of Talent Solutions in
Southeast Asia for Aon. "As demand for talent continues to grow,
organisations that align workforce planning, job architecture and pay
strategies with AI adoption will be better positioned to translate
innovation into growth."
Data Maturity Provides a Foundation, but Gaps Remain
One of the clearest signals in the Philippines is the strength of
workforce data, supported by benchmarking sources such as Aon's Radford
McLagan Database. More than half of organisations (53 percent) report
high levels of HR data maturity, indicating a strong foundation for more
informed workforce decisions.
This capability is not yet fully translating into workforce outcomes.
Only 20 percent of organisations have a clearly defined and
well-understood employee value proposition, limiting their ability to
connect workforce insight with engagement and retention.
Employee Expectations and Benefits Gap
While organisations are confident in their people strategies, there is
an opportunity to further strengthen alignment with employee experience.
Seventy-seven percent of organisations believe their wellbeing
strategies meet workforce needs, yet only 25 percent report strong and
visible leadership commitment.
A similar shortfall is evident in benefits. While 71 percent of
employees value customised benefits, only 9 percent report receiving
them, highlighting an opportunity to better align employer offerings
with employee expectations.
This imbalance extends to compensation practices. Pay transparency
remains underdeveloped, with only 13 percent of organisations reporting
mature practices, and 55 percent have not benchmarked compensation
recently, which may influence their ability to compete effectively for
talent as demand continues to grow.
"Organisations are making meaningful investments in benefits and
employee experience, with an opportunity to further strengthen clarity,
personalisation and communication," said Cris Rosenthal, strategic
advisory lead for Human Capital capabilities in the Philippines for Aon.
"Closing the gap between employer intent and employee experience will
require more integrated, data-driven and personalised approaches to
health and benefits which will be key to improving engagement and
workforce performance."
Aligning Investment with Outcomes
The findings reflect continued progress in AI adoption, building
workforce capability and data maturity. At the same time, rising
employee expectations are placing greater pressure on organisations to
translate these investments into measurable outcomes. Future growth will
depend less on the pace of investment and more on the effectiveness of
execution.
The findings highlight three priorities for organisations in the Philippines to succeed:
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- Converting strong data maturity into actionable workforce and talent strategies
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- Strengthening compensation transparency and benchmarking to compete for scarce skills
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- Aligning benefits design with employee experience through personalisation and clearer communication
As the Philippines continues to evolve as a key talent and services hub
in Asia, aligning technology investment with workforce strategy will be
key to sustaining growth and strengthening long-term competitiveness.
About the Report
Aon's Human Capital Trends 2026 Study surveyed 2,361 business, HR and
people leaders globally, including 504 respondents from APAC across
markets including Australia, China, Hong Kong, India, Malaysia, the
Philippines and Singapore. More information about the report is
available
here.