Why Do Filipinos Resign So Fast? And How Companies Can Actually Keep Us

If you’re on LinkedIn, you’ve probably seen people quitting left and right—sometimes after just a few months. In the Philippines, this isn’t just a trend; it’s a reality. Employees are bouncing faster than ever, and companies are scrambling to figure out why. Spoiler alert: it’s not just about money.

Let’s break it down: why are Filipinos resigning so quickly, and how can companies stop the great resignation from becoming their daily headache?

The Resignation Reality in the Philippines

The numbers don’t lie:

• 15.9% turnover rate (and rising). That’s how many employees voluntarily leave their jobs in the Philippines (BusinessWorld).

• BPOs are the hardest hit, with attrition rates reaching 30% to 40% (Inquiro.ph).

• Top reasons employees leave:

  • 41.3% resign due to personal reasons (PSA)

  • 28.2% get poached by another company (PSA)

  • Lack of growth, burnout, and low pay are also major deal-breakers.

Recent data indicates that the Philippines experiences a voluntary turnover rate of 15.9%, a noticeable increase from 14.2% in the previous year.

This trend is particularly pronounced in sectors like Business Process Outsourcing (BPO), where attrition rates can soar between 30% to 40%.

Such statistics underscore the urgency for companies to delve deeper into the factors influencing employee departures.

Why Are Employees Leaving?

Several studies have shed light on the primary reasons behind employee resignations in the Philippines:

• Personal Issues: A significant 41.3% of resignations are attributed to personal reasons, highlighting the importance of work-life balance.

  psa.gov.ph

• Better Opportunities Elsewhere: Approximately 28.2% of employees leave because they've been hired by another company, often lured by better compensation or career advancement prospects.

  psa.gov.ph

• Lack of Career Growth: The absence of clear career progression paths can demotivate employees, prompting them to seek growth opportunities elsewhere.

• Inadequate Compensation and Benefits: Competitive pay and benefits are fundamental in retaining talent; without them, employees may feel undervalued.

• Poor Work-Life Balance: Long working hours and insufficient flexibility can lead to burnout, causing employees to prioritize their well-being over their current job.

Proven Strategies to Enhance Employee Retention

Addressing these challenges requires a multifaceted approach. Here are some evidence-based strategies:

1. Competitive Compensation and Benefits: Regularly benchmark salaries against industry standards to ensure offerings are competitive. Consider comprehensive benefits packages that address health, wellness, and financial security. A study focusing on convenience stores in Cavite found that effective employee retention is significantly influenced by factors such as employee compensation and support.

2. Clear Career Development Paths: Invest in training and development programs that enable employees to enhance their skills. Establish transparent promotion criteria and provide regular feedback. Research indicates that opportunities for growth and recognition are pivotal in retaining millennial employees.

3. Foster a Positive Work Environment: Cultivate a culture of respect, inclusivity, and collaboration. Recognize and celebrate achievements, both big and small. Engagement and a supportive environment have been linked to higher retention rates.

4. Promote Work-Life Balance: Offer flexible working arrangements, such as remote work options or adjustable schedules. Encourage employees to take regular breaks and vacations to recharge. Emphasizing work-life balance can reduce burnout and increase job satisfaction.

5. Implement Recognition Programs: Regularly acknowledge and reward employees' hard work and contributions. This can range from formal awards to simple gestures of appreciation. Recognition has been shown to boost morale and loyalty.

6. Provide Support During Personal Challenges: Recognize that personal issues can impact work performance. Offering support, such as counseling services or special leave (e.g., "heartbreak leave"), can demonstrate empathy and enhance loyalty. For instance, a hotel in Cebu introduced a policy granting employees five paid days of "heartbreak leave" to recover from relationship breakups, acknowledging the emotional toll such events can have on productivity.

Conclusion

Employee retention in the Philippines is a complex issue influenced by various personal and professional factors. By understanding the root causes of turnover and implementing targeted, evidence-based strategies, organizations can create an environment where employees feel valued, supported, and motivated to stay. Proactive measures not only reduce turnover costs but also foster a committed and high-performing workforce.