PHILIPPINE EMPLOYERS are grappling with offering benefits to drive worker retention and satisfaction, while also managing the expense of the benefits on offer, particularly healthcare, risk and employment consultancy WTW reported.
Citing its 2025 Benefits Trends Survey issued on Thursday, WTW said: “With rising budgetary pressures and employee benefit costs, particularly around healthcare, cost issues have intensified, impacting employers’ ability to enhance and deliver on their employee benefits,” Royston Tan, head of WTW’s Health & Benefits in Asia-Pacific, said in a statement.
WTW noted that medical expenses are projected to rise 12.3% in the Asia-Pacific, among the highest growth rates worldwide.
“At the same time, competition for talent remains the biggest issue facing employers in the Asia-Pacific, and that has been a top concern since 2021. Structural gaps in the labor market especially for specialized skills, demographic shifts and workforce preferences are also contributing factors to this challenge faced by employers.”
In the Philippines, retirement benefits and other long-term savings are also a major concern, it said.
WTW said employers “will need to recalibrate, doing less of what does not work and more of what does,” Mr. Tan said.
“Companies need to invest in employee needs with greater precision, improving experience and choice, and using benefits to communicate who they are and what they stand for,” he added.
WTW said 61% of employers in the region plan to adjust their benefits spending in the next three years, with a focus on benefits dealing with mental health, medical care and financial well-being.
Some 51% of employers said they plan to maximize the value they get from healthcare benefits providers, with 38% noting their intention to adopt targeted programs to more effectively manage costs.
Over 80% intend to expand targeted programs in the next three years for mental health, women’s health, cardiovascular disease and cancer.
According to the report, one in three employers is considering providing comprehensive leave for caregivers. The current proportion of those already doing so is 17%.
The survey consulted around 2,000 employers across 20 markets in the Asia-Pacific. — Katherine K. Chan
