Study: Nearly two-thirds of Philippine workers plan job switch in 2025

A significant shift is underway in the Philippine job market, as 64% of employees are either actively seeking new roles or considering a move within the next 12 months, according to Aon's 2025 Human Capital Employee Sentiment Study. The findings highlight the growing competition for skilled talent and the increasing importance of employee benefits in workforce retention.

The study, which surveyed more than 9,000 employees across 23 countries, including the US, China, India, and Japan, reveals that Philippine workers are prioritising benefits such as medical coverage, paid time off, and work-life balance over traditional compensation.

Rising living costs and concerns over financial and mental well-being have intensified demands for more tailored and flexible benefits, with 83% of respondents willing to trade existing perks for options that better suit their needs.

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Josef Ayson, Aon's growth lead for talent solutions for the Philippines, emphasised the intensifying competition for talent, not only in Manila but also in key cities such as Cebu and Davao. He noted that companies must refine their compensation strategies using market data and internal analytics to attract and retain employees in a rapidly evolving workforce landscape.

The study further underscores the pressing need for employers to rethink their approach to total rewards. Employees increasingly expect companies to provide financial education and long-term savings options, with 65% believing that firms should help them prepare for retirement. As economic pressures mount, businesses that fail to offer competitive benefits may struggle to retain top talent.

"Amid continued economic volatility and the rising cost of living, there is a growing expectation for employers to provide medical coverage and support for mental and financial well-being," said Cris Rosenthal, Aon's strategic advisory lead for health solutions for the Philippines. "Employers must rethink their approach to employee benefits balancing wages with flexible benefits to attract and retain the talent they need."

The findings reinforce the urgency for organisations to make data-driven decisions and craft employee value propositions that align with evolving expectations. Only 17% of respondents report thriving at work, while 23% are merely coping.

Meanwhile, a fun workplace, flexible arrangements, and recognition of individual achievements are also key factors in winning employees' loyalty.

The study reveals that 12% of Filipino employees feel undervalued, while 15% lack confidence that their employer is investing in their skills development and training for the future of work.

Trends in the Philippines mirror global patterns, with 60% of employees worldwide either changing jobs or considering new opportunities within the next 12 months.

Half of global employees with less than six months at a company may seek new opportunities. This drops to 31% for those employed between six months and a year, with the likelihood of job-seeking declining steadily over the years. After a decade, employees become less inclined to leave, and by 20 years, 68% say they will definitely stay.

Each generation has unique values and needs, requiring tailored workplace strategies. While Gen Z and Millennials report higher well-being than older generations, social factors significantly influence Gen Z's workplace experience.

"Compensation and benefits remain pivotal in attracting and retaining top talent. But beyond remuneration, how can businesses become more attractive to both potential and current employees without escalating costs? The answer lies in understanding the deeper dynamics of workforce engagement, total rewards and optimisation," Lambros Lambrou, Aon's CEO of Human Capital, said in the foreword.

"This is not about simply adding new programmes – it's about ensuring your existing resources work effectively for both your people and your organisation," he added.

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