Gallagher’s 2025 Workforce Trends Report: Workplace Wellbeing Index has found that burnout remains a significant issue, with more than 25% of surveyed employees saying they are currently experiencing it.
The study also recorded a drop in overall employee well-being and engagement compared with last year.
The report, which gathered responses from over 2,500 employees, indicated reduced loyalty to current employers and a decline in confidence that staff feedback will be acted upon.
James Allen, Gallagher’s director of people experience and innovation, said the data suggests organisations need to respond to employee well-being concerns in a timely manner or risk increased turnover and associated costs.
“The well-being warning lights are well and truly on, and the workforce is approaching its breaking point. Employees are telling us that they want more from their organisations when it comes to their well-being and those businesses that fail to rise to this challenge will face increased costs and staff turnover,” he said.
According to the findings, cost-of-living pressures are influencing employee capacity to manage work demands.
The report links these pressures to higher levels of absenteeism and presenteeism, as well as greater susceptibility to stress.
While satisfaction with employers has dropped overall, the research outlined potential steps businesses could take, such as adjusting benefits, remuneration, and well-being programs.
Close to half of respondents expressed interest in financial well-being initiatives – including budgeting tools, retirement planning resources, and financial education – but fewer than 30% said these were currently available to them.
Gallagher’s analysis identified three distinct employee types based on well-being and engagement:
Allen said this segmentation can help employers target resources and tailor strategies to the specific needs of their workforce.
“We wanted to give organisations a new, innovative way of looking at their workforce to try and help them meet their employees where they are,” he said. “By further breaking down our comprehensive data, we’ve been able to highlight key data points that organisations can look towards to support those that need it and further bolster those that are satisfied.”
The Gallagher findings align with Aon plc’s 2025 Asia-Pacific Skills Impact Survey, which found that 68% of organisations have adopted formal skills frameworks to guide recruitment, development, and succession planning.
Around four in 10 companies are refining or introducing programs to address emerging skill needs.
While the use of technology and external benchmarks is increasing, more than half of respondents still rely on traditional evaluation methods such as job descriptions and manager assessments.
Puneet Swani, Aon’s head of talent solutions for the region, said that employers are placing more emphasis on building skills for future needs rather than focusing solely on past experience.
The research also indicated that about 40% of organisations are matching employee skills to lateral job moves – a practice expected to expand in the next two years.
Meanwhile, Aon’s 2025 Human Capital Employee Sentiment Study – which surveyed over 9,000 workers across 23 markets – showed that 60% of employees are considering a job change within the next 12 months.
Workplace flexibility and well-being offerings were identified as key factors influencing retention, particularly among younger workers.
For Generation Z respondents, work-life balance was rated just below health benefits in importance, ahead of career progression and leave entitlements.