Organisations in the Philippines are rapidly embracing artificial intelligence (AI) and investing in workforce upskilling, but a shortage of AI-skilled talent and widening gaps between employer strategies and employee expectations could hinder long-term growth, according to a new study by Aon.
The inaugural Aon Human Capital Trends Study found that 72% of organisations in the Philippines have either deployed AI or are piloting AI initiatives, placing the country on par with global AI adoption trends. Nearly all respondents (94%) expect AI to create new roles and reshape workforce skill requirements, underscoring the technology's growing influence on the future of work.
However, the study highlights a significant talent challenge. Only 17% of organisations said they are able to recruit and retain enough employees with AI-related skills, exposing a gap between organisations' digital ambitions and the availability of qualified talent.
"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, Southeast Asia at 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."
The report also points to progress in workforce data capabilities. More than half (53%) of organisations reported high levels of HR data maturity, providing a strong foundation for data-driven talent and workforce decisions. Despite this, only 20% said they have a clearly defined and well-understood employee value proposition, suggesting many employers are yet to translate workforce insights into stronger engagement and retention strategies.
Employee experience remains another area of concern. While 77% of organisations believe their wellbeing programmes effectively address workforce needs, only 25% reported strong and visible leadership commitment to those initiatives.
The study also identified a disconnect between employee expectations and benefits offerings. Although 71% of employees value personalised benefits, only 9% said they currently receive customised benefits from their employers.
Compensation practices also lag behind evolving workforce expectations. Only 13% of organisations reported having mature pay transparency practices, while 55% have not conducted recent compensation benchmarking, potentially weakening their ability to attract and retain in-demand talent.
"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 at Aon. "Closing the gap between employer intent and employee experience will require more integrated, data-driven and personalised approaches to health and benefits."
According to the report, organisations should prioritise converting workforce data into actionable talent strategies, strengthening pay transparency and compensation benchmarking, and aligning benefits with employee expectations through greater personalisation and clearer communication.
As the Philippines continues to strengthen its position as a regional talent and business services hub, Aon said organisations that effectively integrate technology investments with workforce strategy will be better placed to sustain growth and remain competitive in the evolving labour market.