How AI, Cost Pressures and Reskilling are Transforming Talent Strategies

How AI, Cost Pressures and Reskilling are Transforming Talent Strategies
February 17, 2026 8 mins

How AI, Cost Pressures and Reskilling are Transforming Talent Strategies

How AI, Cost Pressures and Reskilling are Transforming Talent Strategies

AI acceleration, rising healthcare costs and changes to workforce skills are transforming organizations. Our analysis of financial services, life sciences and technology companies provides insights on how to redesign roles, reskill at scale and reimagine talent strategies to stay competitive.

Key Takeaways
  1. Optimize the workforce for changing skills and technology by redesigning roles, locations and structures, with a focus on higher-value specialist work.
  2. Build and move critical skills by accelerating reskilling and using smart “build versus buy versus bot” strategies to meet rising digital and AI demands.
  3. Attract and retain critical talent by strengthening EVP, aligning rewards to what people value, and ensuring fairness and transparency across the workforce.

The labor market is in flux. Employee turnover and hiring are trending lower, artificial intelligence (AI) is reshaping workforce skills and total rewards budgets are being squeezed by rising healthcare costs. People leaders know these pressures, but the changes are far from uniform; each industry is moving through its own version of disruption. That is why it’s vital to have timely, sector-specific data and insights that address different scenarios. 

Aon’s talent and analytics teams analyzed internal and external data,1 including the Radford McLagan Compensation Database, covering more than 4,200 technology, life sciences and financial services companies across the globe. In each sector, several significant workforce shifts are afoot, and understanding their various impacts is crucial.

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Bringing together data from nearly 4,200 companies gives us a unified, global view of how sectors are shifting. Instead of reacting to piecemeal headlines, we can show clients the real patterns and core themes leaders need to focus on to strategize and act with confidence.

Jason Trull
Global Head of Talent Data Solutions

Organizations across financial services, technology and life sciences are experiencing fast-moving shifts driven by AI, cost pressures and evolving workforce needs. Although each sector is responding differently, three priority areas are emerging for leaders preparing for what’s next. We explain how these major forces are impacting each sector and what talent and HR leaders can do to respond. 

Priority #1: Optimize the Workforce for the AI Era

As AI adoption accelerates across all three sectors, organizations are rethinking how work is structured and where it’s done. The end goal is to align job roles, spans (the number of employees reporting to a manger), layers (the number of management tiers) and location footprint with business priorities to be most efficient and effective.

Spotlight on Financial Services Companies

This trend is having an outsize impact on financial services firms, which are experiencing significant transformation pressure. “Since many financial services roles are highly technical and analytical, the industry is experiencing meaningful transformation driven by AI,” explains Chris Tanana, Partner and Financial Services Sector Lead in Aon’s Talent Solutions team in North America. “Forward-looking firms are not only equipping employees with AI tools but are also establishing dedicated leadership roles — such as chief AI officers — to guide adoption and governance.”

Due to organizational disruption and change, tracking voluntary and involuntary turnover are key metrics. Over the past three years, overall turnover has decreased from 18.5% in 2022 to 15.5% in 2025. However, this downward trend masks a rise in involuntary turnover tied to restructuring, automation and consolidation. Global involuntary turnover is 4.9% compared to 3.5% in 2022.

As financial firms focus on cost management, they are reassessing their total rewards strategies and shifting more work to lower-cost countries across the EMEA and APAC regions. Aon’s data finds a 4% increase in hiring at low-cost locations globally and a 2% decline in hiring at high‑ and medium‑cost markets. “Financial organizations are still evaluating how AI specialist roles and broader AI integration will influence compensation across the firm,” says Tanana.

36%

of financial services companies say total rewards redesign is needed to boost effectiveness and manage rising costs.

Source: Aon data

Priority #2: Identify Critical Skills and Focus on Reskilling and Upskilling 

As digital and AI skills evolve faster than most organizations’ ability to adapt, building future-ready capabilities is essential. This means accelerating reskilling and upskilling plans, creating clearer career pathways and making smart “build versus buy versus bot” decisions. This allows talent to move easily to where it’s needed most.

Spotlight on Technology Companies

The technology sector remains the epicenter of AI‑driven skills transformation. By 2030, 99% of technology employers expect significant AI adoption, reinforcing the need for sustained reskilling. Technology firms report that reskilling has become a strategic imperative as routine and transactional work continue to decline.

Regional workforce shifts also reflect evolving demand for certain skills. Companies in APAC show strong growth in engineering and IT hubs, while EMEA has seen a 3% increase in engineering capacity. Firms in North America are consolidating support functions while investing in higher‑value technical roles.

99%

of technology companies surveyed expect significant AI adoption by 2030.

Source: Aon data

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There is an urgent reskilling mandate. The technology firms that are getting ahead are building career pathways into AI and data roles. They are also bringing more junior employees into this discussion. It’s not just a skills shift but a mindset shift.

Ephraim Edelman
Partner and Head of Data Solutions, Talent Solutions, North America

Priority #3: Attract and Retain Critical Talent with a Compelling EVP

Even as turnover declines across sectors, other factors such as cost‑of‑living pressures, wellbeing and evolving expectations around flexibility and career development continue to influence engagement and retention. Strengthening the employee value proposition (EVP) is essential for holding onto scarce specialist talent.

Spotlight on Life Sciences Companies

Life sciences organizations are navigating multigenerational needs and a shifting workforce mix. Overall turnover has decreased to 15.3%, down from 18.7% over the past three years. However, involuntary turnover has risen to 6.3%, reflecting ongoing restructuring. An aging workforce and increased competition for digital and scientific talent mean HR leaders should continue to invest in the whole EVP, including compensation incentives, benefits, wellbeing and career pathways.

Gender representation is improving globally, with APAC showing the highest gains. We observe a 6% increase in women among the life sciences workforce over the past year. However, pay gaps persist at senior levels across regions. With new pay transparency regulations, companies should review their internal programs and act now to remain compliant and deliver on talent priorities.

6%

increase in women in the life sciences sector workforce globally in the past year.

Source: Aon data

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Turnover may be easing, but restructuring, reskilling needs and pay transparency rules are raising the bar. A compelling EVP in the life sciences sector needs to include competitive compensation as well as a clear career path, fulfilling work and benefits that match employee needs.

Tanaz Moazami
Partner and Life Sciences Sector Lead, Talent Solutions, North America
Shifting HR Priorities Based on Workforce Data Across Sectors
  Financial Services Life Sciences Technology
Expected AI Adoption 95%+ of employers expect significant AI adoption 97% of employers expect significant AI adoption 99% of employers expect significant AI adoption 
Current Total Turnover 15.5% overall (involuntary turnover has risen) 15.3% overall (down from 18.7% in 2022) 17.5% overall (down from 20.8% in 2022)
Healthcare Cost Pressure Salary growth flattening; healthcare costs rising 3–4X faster than pay Healthcare costs up 25–34% across APAC & EMEA at roughly 4X inflation About one-third of total rewards increases projected to be consumed by healthcare costs
Workforce Structure/Skills Shift toward specialist roles; reductions at support/entry levels; risk/compliance capability rising Faster skill shift; up to 50% of today’s skills could be obsolete by 2030; 96% of firms report intent to reskill Emphasis on AI, cybersecurity, data; 70% expect hiring for new skills in five years
 
Equity Lens Women comprise 54%+ at entry-level roles and drop at higher levels Women’s representation rising; reverse pay gaps emerging at several levels. Senior leadership continues to have a persistent negative gap and lower female presence Pay gaps narrowing, with NA showing the strongest improvement; small gaps persist at lower levels
Learn More About Aon’s Workforce Data

The talent landscape is shifting quickly. Companies that move with clarity, guided by data and a strong understanding of trends, will be best positioned to act and thrive. Learn more about Aon’s unmatched workforce data and contact us to start a conversation. 

 

1 Aon’s Radford McLagan Compensation Database; Aon’s Salary Increase and Turnover Studies 2022-2025; Aon’s Talent Assessment data; Aon’s Global Benefits Insights; Aon’s 2025 Employee Sentiment Study; Aon’s 2025 Future of Total Rewards Study; World Economic Forum Report 2025

Aon’s Thought Leaders
  • Ephraim Edelman
    Partner and Head of Data Solutions, Talent Solutions, North America
  • Ishita Goel
    Global Lead, Talent Analytics Program, Talent Solutions, Asia Pacific
  • Tanaz Moazami
    Partner and Life Sciences Sector Lead, Talent Solutions, North America
  • Bruno Rocquemont
    Partner, Head of Talent Data Solutions, Europe, the Middle East and Africa
  • Chris Tanana
    Partner and Financial Services Sector Lead, Talent Solutions, North America
  • Jason Trull
    Global Head of Talent Data Solutions

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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