Industrials and Manufacturing: A Risk Management Approach to Transform Workforce Risk into Workforce Resilience

Industrials and Manufacturing: A Risk Management Approach to Transform Workforce Risk into Workforce Resilience
February 10, 2026 10 mins

Industrials and Manufacturing: A Risk Management Approach to Transform Workforce Risk into Workforce Resilience

Industrials and Manufacturing: A Risk Management Approach to Transform Workforce Risk into Workforce Resilience

Workforce-related risks — spanning health, benefits, safety systems, and data and analytics — are not just operational concerns but strategic drivers. When activated, they positively shape the total cost of risk and long-term resilience for industrials and manufacturing organizations.

Key Takeaways
  1. Rising costs, generational complexities, siloed data and talent attraction headwinds all require action.
  2. Globally, 44% of I&M employees say employers should support employee wellbeing. Organizations must reframe employee health and wellbeing as a crucial component of workforce performance, along with a culture that actively promotes safety and wellbeing.
  3. Learn how to turn data related to safety, claims, performance management and health screenings into actionable insights to help build more robust workforce resilience.

Leaders are reassessing their current approach and considering alternative pathways that better support their workforce and long-term goals. For industrials and manufacturing (I&M), exploring a different approach to workforce risk isn’t just beneficial; it’s now a necessity. While the industry faces complexities such as rising healthcare costs, increased claims severity and an aging workforce, there is also a significant opportunity to strengthen culture and employee wellbeing. By prioritizing these areas, organizations can build a resilient and motivated talent pipeline that’s equipped to succeed now and in the future.

For leaders with a long-term vision, the priority is to break down silos between risk management and human capital strategies, creating a more holistic approach that directly addresses today’s issues. With a proactive mindset, I&M organizations can reframe workforce risks as strategic investments that directly improve resilience and optimize their total cost of risk. The opportunity for real, positive change is in industry leaders’ hands. The time to act is now.

Rising Healthcare and Compensation Costs

Healthcare costs are rising, driven by high medical inflation, the rising prevalence of chronic health conditions and high-cost claimants, and the introduction of new therapies and drug classes, such as GLP-1s. It's a reality that has prompted global benefit managers to pivot their focus toward cost containment strategies. In fact, 10% of the medical trend rate can be attributed to GLP-1s and similar drugs, rising as high as 25% in some markets.1 Additional pressures on primary care worldwide have also significantly impacted healthcare access.

I&M employees continue to experience significant financial stress, as well as generally lower pay structures within the sector. Aon data suggests that 31% of I&M employees have just enough to get by financially, while 41% say their employers should help them save for retirement and long-term needs.2 Additionally, many hourly workers rely on overtime to supplement their income, adding to financial insecurity.

To address these challenges, I&M employers should consider whether they are enabling meaningful primary care relationships for their employees and dependents. They must maximize health and wellbeing interventions both on and off the clock. Integrating new technologies — such as healthcare applications — for deskless workers, while ensuring on-site or near-site healthcare is easily on hand for factory workers, will also help to improve healthcare accessibility and utilization.

In addition, manufacturers should take a more complete approach to employee financial wellbeing by aligning total rewards based on market conditions and evolving workforce expectations. When a single $25,000 workers compensation claim can cost an organization $875,000 to offset in sales — based on a 6% margin — it’s in the financial interests of I&M organizations to build and maintain a healthier, happier and flourishing workforce.3

9.8%

The anticipated global average medical trend rate for 2026.

Source: The Global Medical Trend Rates Report 2026, Aon

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Quote icon

Changes to plan design and employee contributions, while helping to mitigate rising healthcare costs, are simply putting more weight on the backs of employees.

Bob Gross
Senior Vice President, Health Solutions, North America

Generational Complexities

I&M workforces now have four generations working under one roof. With differing expectations and demands, managing generational complexities is a fresh hurdle to overcome.

With an aging workforce, recovery from injuries — whether on or off the job — is taking longer. For instance, an increase in comorbidities is adding pressure to workforces. Hypertension stands out as both a leading condition and the leading risk factor for other conditions by a wide margin.4 Additionally, in the U.S., 5% of health plan members account for over 60% of all medical and pharmacy spending, with over 50% of high-cost claims being predictable.5

But pressure isn’t just coming from older segments of the workforce. Another manufacturing trend Aon has identified globally is an overall increase in workers compensation claims among new hires, which is contributing to rising average claim costs.6 Despite plants and facilities becoming safer, the reality is that claim severity in the sector has been increasing due to rising medical costs and social inflation. Since 2017, average indemnity claims in the U.S. manufacturing industry have increased 56%.7

47%

of claims within I&M in the U.S. are attributed to an aging workforce (over 45 years old).

Source: Aon Proprietary Data and Benchmarks

The Talent Attraction Challenge

The talent attraction challenge in the industry is complex and must be addressed at both an organizational and cultural level.

The less labor-intensive gig economy and increased movement within the job industry have had a significant impact on I&M talent pipelines worldwide. The rural locations of many manufacturing operations and the challenge of providing more flexible working conditions have also hampered their ability to compete for talent in an increasingly competitive market. Culturally, the industry has found it difficult to foster a sense of belonging among its employees, with only 60% of organizations feeling they can.8

As manufacturing becomes more technical, grey-collar roles — defined as those that require hybrid skills — have become more critical. However, tech conglomerates often offer more attractive options for these roles, with higher wages in more appealing locations.

Wages continue to be the priority for I&M employees, with 53% of industry employees overwhelmingly choosing “better than average pay and meaningful benefits” as their number one most valuable benefit.9 Against increasing employee demands, the cost of attracting, training and retaining talent is stretching talent budgets across the industry.

31%

of I&M employees say they “have just enough [money] to get by”.

Source: 2025 Employee Sentiment Study — Industry Overviews, Aon

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Siloed Data Systems and Delayed Reporting

Data is at the very center of the solutions to the industry’s challenges. However, a lack of data and the constraints of legacy systems are inhibiting organizations’ ability to see risk management and human capital systems from a wider perspective.

Additionally, a lack of early intervention hinders the ability to manage claims proactively through better treatment and care. It also interferes with getting employees back into the workplace as quickly as possible. The industry also suffers from a cultural stigma around reporting, with many thinking they can simply “tough it out.”

Rather than viewing incrementally rising insurance premiums as the cost of doing business, organizations need to leverage their internal data systems to their advantage. When data helps tell a compelling story about safety programs and claims management, organizations have more power to negotiate effectively and confidently in a competitive marketplace.

20%

The percentage that the I&M industry lags behind other industries in terms of timely claims reporting.

Source: Aon Proprietary Data and Benchmarks

Quote icon

Too many companies focus only on driving down premiums. The reality is that they should focus on claims management and loss control to reduce their total cost of risk.

Kelly Black
Commercial Risk Claims Service Team Leader, North America

A Risk Management Approach

In a challenging environment, organizations risk losing their competitive edge when they underestimate the potential of improved human capital strategies.

By harnessing the power of primary care and emerging health models, organizations can help employees maximize their care through a preventative approach that builds a stronger, more engaged and resilient workforce.

1. Move Beyond Compliance-Driven Safety Checks Towards a More Proactive Risk Prevention Culture

Why? By pivoting toward operational excellence, organizations can reduce risk retention and risk transfer costs while simultaneously boosting productivity. In the face of ongoing generational complexities and shifting employee expectations, employee engagement and buy-in around operational strategy to confront these challenges will help drive business success.

How?

  1. Build a culture of health and wellbeing, ensuring managers at all levels understand and can communicate the broad benefits of proactive healthcare.
  2. Invest in training strategies and reporting protocols to reduce the risk, frequency and severity of injury, while speeding up reporting.
  3. Set out consistent mechanisms for employee feedback, with clear plans for actioning feedback.
  4. Review current approaches and policies, and ensure new policies and procedures are accessible and understood by all.
2. Treat Employee Health and Wellbeing as Crucial Components of Workforce Performance and Resilience

Why? Globally, 44% of I&M employees say employers should support employee wellbeing, 18% of I&M employees report they are often or always stressed at work and 16% of employees are struggling or only coping from a wellbeing perspective (with only 18% reporting that they are thriving).10 By focusing on human capital performance, organizations can strengthen employee engagement and retention, increase productivity and stabilize benefit costs by driving healthier outcomes.

How?

  1. Provide targeted, flexible benefits that better suit employee needs.
  2. Take a holistic approach to employee financial wellbeing by aligning total rewards based on market conditions and evolving workforce expectations.
  3. Focus on early intervention to reduce absenteeism.
  4. Consider innovative health initiatives that bridge access gaps — for example, virtual medicine for shift workers.
  5. Aon’s Health Solutions help to deliver better benefits for employees while curbing the financial impacts on organizations.
Quote icon

We expect organizations to increasingly adopt direct primary care solutions — new on-site or near-site clinics, expanded occupational health centers or workers compensation facilities, and emerging models that incentivize the use of high-quality, low-cost providers — to enhance employee access to primary care and wellbeing.

Bob Gross
Senior Vice President, Health Solutions, North America
3. Integrate Data — Like Safety, Claims, Performance Management and Health Screenings — to Create a More Extensive, Analytical Perspective

Why? I&M organizations are sitting on a deep well of data. If effectively collected and utilized, greater insight will optimize internal risk management costs and enhance risk transfer strategies across the board.

How?

  1. Use data to enhance health and benefits analytics, crafting a more appealing employee value proposition for both current and future talent.
  2. Use artificial intelligence and digitalization to spot correlations and trends in operational and workforce data, shifting risk management from reactive reporting to predictive control.
  3. Modernize total rewards design by integrating and transparently communicating pay equity analytics.
  4. Make informed insurance decisions using the Risk Analyzers, which help organizations effectively utilize their data.

Foster a Culture of Togetherness for Tomorrow

At the heart of solving the talent challenge is a deep cultural shift — one that embraces openness, honesty and engagement in proactively supporting the safety and physical, mental and financial wellbeing of the workforce.

By inviting everyone to participate in understanding the impact of insightful risk management data and purposeful interventions, organizations can build a united culture, where each person is invested in doing the right thing and empowered to influence positive outcomes.

Quote icon

The best claim is the one that never happens.

David Carlson
Global Industrials and Manufacturing Leader, Enterprise Client Group

Next Steps

  • Get in touch with Aon experts to discuss how organizations can better quantify and manage workforce exposures — particularly those impacting health, safety and benefits.
  • Request a diagnostic or benchmarking session using Aon’s Human Capital Analytics tools to assess the total cost of risk and workforce resilience.
  • Schedule a strategic consultation to align workforce strategy with operational and financial goals — especially amid rising uninsurable risks and talent pressures.

Aon’s Thought Leaders
  • David Carlson
    Global Industrials and Manufacturing Leader, Enterprise Client Group
  • Kelly Black
    Commercial Risk Claims Service Team Leader, North America
  • Paul Capuzzo
    Risk Consulting Leader, North America
  • Bob Gross
    Senior Vice President, Health Solutions, North America

1 The Global Medical Trend Rates Report 2026, Aon
2 2025 Employee Sentiment Study, Aon
3 Estimated Costs of Occupational Injuries and Illnesses and Estimated Impact on a Company's Profitability Worksheet, OSHA
4 The Global Medical Trend Rates Report 2026, Aon
5 U.S. Employer Health Care Costs Expected to Rise 9.5 Percent in 2026, Aon
6 2025 Employee Sentiment Study, Aon
7 Aon Proprietary Data and Benchmarks
8 2025 Employee Sentiment Study, Aon
9 2025 Employee Sentiment Study — Industry Overviews, Aon
10 Ibid.

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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