What should APAC companies prioritise? Data from Aon suggests health

The comprehensive report, based on responses from 518 global HR professionals including 103 APAC-headquartered companies, positions the region as a frontrunner in modernising workplace benefits amid economic and workforce challenges. 

 “As organisations navigate economic uncertainty and rising employee expectations, the ability to deliver personalised, equitable and cost-effective benefits is a strategic differentiator,” said Tim Dwyer, head of human capital for APAC at Aon. “Our survey signals APAC is leading the way in aligning benefits strategy with workforce needs.” 

Unlike other global regions, APAC is the only one to list "health and productivity of employees" among its top five strategic priorities. This reflects the unique demographic and economic composition of the region, which heavily depends on service labour. With workforce well-being directly impacting the operational efficiency of global supply chains, APAC’s emphasis on health represents both a social and economic imperative. 

“Health and productivity of the workforce are crucial, and the large size of the populations in this region means that small changes can have a large impact,” said Alan Oates, head of global benefits for APAC at Aon. 

Oates explained, “Prioritising health and productivity of employees reflects the critical importance of workforce in the region to the supply chain for many multinational organisations.” 

The study also reveals a growing demand among APAC employers and employees for personalised benefit options. More than 30% of leading multinationals surveyed now have global guidelines encouraging local markets to provide benefit choices. 

Specifically in APAC, companies are more likely to offer flexibility in key areas, such as annual leave and career development, aligning benefits with diverse employee preferences and life stages. 

Remarkably, 65% of employees at multinational firms are open to sacrificing some existing benefits in exchange for greater personalisation. This marks a cultural and strategic shift in the way benefits are designed and deployed across the region. 

About 60% of leading multinationals, those with mature governance frameworks and robust global strategies, already leverage digital platforms for benefits delivery. Notably, APAC is emerging as an early adopter of artificial intelligence. At least 28% of firms in the region plan to deploy AI-powered solutions to support benefits selection and overall employee well-being. According to Aon, such AI integration helps employers analyse employee needs more accurately, drive engagement, and offer scalable solutions that cater to the diverse requirements of the modern workforce. Balancing personalisation with cost containment Despite the push for better benefits, cost containment remains a top priority for global firms, including those in APAC. At least 31% of respondents from the global survey are exploring the option of remarketing or switching providers. However, only 37% are actively investing in well-being programmes, highlighting a potential disconnect between strategy and implementation. This contrast underscores the complex balancing act that employers must perform: meeting evolving employee expectations while managing budgets and ensuring long-term sustainability. Governance: A cornerstone of APAC’s success Governance is where APAC truly excels compared to other regions. The study shows that leading companies in the region are three times more likely to have formal governance committees in place and receive senior management endorsement for their global benefits strategies. Additionally, APAC firms are 2.5 times more likely to establish global benefit guidelines detailing preferred design and financing approaches. This structured governance enables these organisations to be more agile, compliant, and aligned with long-term business goals. The ability to maintain effective governance is critical when the benefits strategy needs to be both locally adaptable and globally consistent, said Dwyer. Understanding the context: Global trends and local execution The study draws on insights from HR leaders overseeing operations across diverse regions, offering a panoramic view of current and future challenges in benefits management. It reveals that while cost control and governance are universal concerns, APAC distinguishes itself through its proactive alignment of benefits strategy with workforce expectations and operational realities. “Organisations across the region must continue to adapt their employee benefits strategies to meet evolving workforce expectations and economic challenges as they strive to remain competitive,” added Oates. This study underscores the importance of aligning benefits strategy with workforce needs while managing rising costs and governance complexity — especially in a region as diverse as APAC. Navigating the future of global benefits In today’s volatile business environment, the ability to attract, support and retain talent through value-driven, cost-effective benefits is more essential than ever. While this need remains constant, the context in which organisations operate has dramatically shifted. The study identifies several key opportunities and risks for global organisations: Personalisation: Companies are investing in tailored benefit packages, enhanced communication, and global equity policies such as minimum standards. Cost management: Budget control remains essential, though effectiveness varies widely based on strategy and execution. Governance models: Strong governance enables firms to respond quickly to change, drive engagement, and implement meaningful reform. By learning from leading APAC employers and leveraging data-driven, employee-centric strategies, companies worldwide can better position themselves for sustainable growth. The findings highlight a critical inflection point: organisations that successfully align employee benefits with governance, cost control and personalisation will be best equipped to build resilient, future-ready workforces.