Australian companies are being encouraged to rethink their approach to workforce management as employee expectations and workplace dynamics continue to evolve.
Recent research, including Aon’s 2025 Human Capital Employee Sentiment Study and the Accenture Life Trends 2025 report, revealed that a significant proportion of employees are contemplating a job change within the next year.
The studies identified a shift in workforce priorities, with work-life balance, well-being, and organisational culture now ranking alongside salary and job security as key factors for employees.
For younger employees, particularly those in Generation Z, work-life balance is now considered nearly as important as medical benefits, and is valued above paid leave, career progression, and retirement planning.
This trend, described as a move away from the “always-on” culture, suggests that traditional incentives may no longer be sufficient to attract and retain talent.
The Aon study also highlighted differing perceptions of artificial intelligence (AI) in the workplace, with executives more likely than entry-level staff to anticipate job displacement due to AI.
Hybrid work arrangements appear to foster a stronger sense of value among employees, while those working entirely remotely or solely in-office report feeling less appreciated.
To address these challenges, Gallagher has outlined a five-step approach for leveraging data in workforce management, aimed at helping employers make informed decisions that support both business objectives and employee needs.
Gallagher recommends that companies move beyond generic benchmarking and standardised reports.
Instead, organisations are encouraged to develop a people analytics strategy that reflects their unique workforce composition and business goals.
By analysing internal data, employers can better understand which benefits and programs are most valued, identify potential risks such as turnover, and uncover growth opportunities.
This tailored approach enables more precise interventions and supports ongoing organisational performance.
The second step involves equipping leaders with actionable data insights. Gallagher emphasised the importance of leadership buy-in and cross-departmental collaboration.
When HR teams provide department heads and managers with relevant analytics, it fosters accountability and supports informed decision-making.
This approach helps break down organisational silos and ensures that workforce strategies are aligned with the broader goals of the business.
While data analytics can drive meaningful change, many employers face challenges related to outdated systems and limited HR capacity.
Gallagher noted that adopting modern technology and automation can help streamline data collection and analysis.
However, integrating new systems requires careful management, particularly regarding data privacy and security.
Robby White, US health and benefits business line leader at Gallagher, said employers can now leverage analytics to create customised health, wealth, and career programs that fit both their current workforce needs and future objectives.
Understanding the demographic makeup of the workforce is essential for designing effective benefits and well-being programs.
Gallagher advises organisations to use demographic data to tailor communications and offerings to different employee groups, including various generations and life stages.
Despite its value, many employers have yet to fully utilise demographic insights in their people strategies.
By doing so, companies can better address the specific needs and preferences of their staff, leading to more effective engagement and retention.
The final step involves using data to identify opportunities for both cost savings and strategic investment.
Gallagher highlighted examples where organisations have analysed benefits data to find efficiencies, which can then be reinvested into employee programs.
For instance, reviewing pharmacy benefits or vendor contracts may reveal savings that support new health initiatives or enhanced support services.
John Tournet, US CEO, benefits and HR consulting at Gallagher, noted that data now enables employers to assess the impact of benefit changes at the employee level, providing a clearer picture of outcomes than was previously possible.
