A new survey from Aon plc indicates that employers across the Asia-Pacific region are increasingly focused on incorporating skills-based frameworks into their workforce strategies, as they respond to evolving talent demands and operational challenges.
The 2025 Asia-Pacific Skills Impact Survey, which collected responses from more than 135 organisations, highlighted that nearly four in 10 companies are currently developing or refining their talent programs around emerging skills needs.
A growing number of firms – 68% of respondents – have already implemented formal skills frameworks to guide talent-related decisions.
While these frameworks are used to support functions such as recruitment, training, and succession planning, traditional evaluation methods persist.
More than half of those surveyed still rely primarily on job descriptions or manager assessments, although 44% report using technologies and external benchmarks to better assess workforce capabilities.
Puneet Swani, Aon’s head of talent solutions for APAC, said market conditions are prompting employers to rethink the way they evaluate talent.
“As businesses face an increasingly dynamic environment, there is a strong need for relevant future-ready skills over traditional work experience to build a resilient and agile workforce,” he said. “Organisations must prioritise skills development and leverage people analytics to improve HR and business outcomes. By doing so, they can foster a resilient and adaptable workforce ready to meet future challenges.”
The study showed that businesses are using skills data to improve internal talent mobility.
About 40% of organisations have started aligning employee skills with lateral job moves as part of their development strategies. This practice, Aon estimates, will be adopted by around 45% of firms in the next 12 to 24 months.
However, progress is not without challenges. Maggie You, Aon’s APAC head of people advisory, pointed to several barriers.
“The top challenges for progressing with skills initiatives include limited budget and resources, measuring program effectiveness, and identifying relevant skills. To overcome these barriers, organisations must take small steps by starting with pilot programs, using objective assessments and clear KPIs, engaging business stakeholders, and aligning skills frameworks with job architecture and external benchmarks,” she said.
Complementing these employer insights, Aon’s 2025 Human Capital Employee Sentiment Study – based on input from over 9,000 workers across 23 markets – revealed a shifting landscape in employee expectations and satisfaction levels.
The findings showed that 60% of employees are considering changing jobs within the next year.
Respondents cited a growing interest in workplace flexibility and well-being initiatives, particularly among younger demographics.
For Gen Z, work-life balance now ranks just below health coverage in terms of importance, surpassing career development and leave benefits.
Views on artificial intelligence differ across job levels. While 22% of senior leaders expect AI to significantly disrupt employment in their sectors, only 11% of entry-level employees agree. Many junior staff also report uncertainty around how AI will influence their future roles.
Work arrangements continue to shape engagement. The survey found that hybrid workers are more likely to feel valued than those working exclusively on-site or remotely.
Nonetheless, benefit access remains a point of concern: although 72% of respondents value personalised benefits, only 41% have access to customizable options.
Additionally, just 38% of employees who consider life and disability insurance essential believe these are available to them.