Corporate News

Why Filipino employees leave their companies

Posted on February 24, 2016

THE ATTRITION rate among organizations in the Philippines increased by three percentage points to 15% in 2015, according to the Willis Towers Watson 2015 Total Rewards Survey, with employees citing “better pay opportunity” as a top reason for leaving.

The survey, which was participated in by more than 300 companies, revealed that 70% of respondents consider better compensation as a major factor when determining whether to stay with their employer or leave for another company.

“Contrary to the perception that the business process outsourcing and information technology (IT) sectors dominate employee pay in the country, the survey results show that the banking and financial services industry pays the highest, followed by the consumer products/manufacturing sector,” Vangie Daquilanea, global data services practice head of Willis Towers Watson Philippines, was quoted in a statement as saying.

Engineering and IT roles command the highest entry-level pay compared to other functions such as accounting and finance, human resources, administrative services and supply chain or procurement, the survey said. New graduates of engineering and IT courses start on a monthly salary of about P22,000.

The Willis Towers Watson survey also showed on average, the merit increase given by companies last year was 6%. This year, companies are setting aside a 7% merit increase for their employees.

Other reasons cited by employees for leaving a company included relocation or family migration (32%), relationship with supervisor (29%), health-related reasons (15%) and flexible work arrangement or work life balance (14%).

Ms. Daquilanea noted organizations should recognize the importance of employee-manager relationships, and equip line supervisors and managers with stronger people management skills.

“Training programs should be reviewed and strengthened to ensure middle managers are capable of the line report management requirements. In most cases, communication skills are paramount to having a healthy employee-supervisor relationship,” she said.

Ms. Daquilanea also found it alarming that a top reason why employees leave is due to their health, noting this was the first time this reason came up in the top five.

The Willis Towers Watson study said companies should review whether their health benefit program coverage was effective and ensure that it also includes preventing illness aside from treatment or cure.

“Having a wellness-driven culture in the company may lead to greater workforce productivity with less absenteeism, as well as encourage employees to be accountable and responsible for their own total wellness,” Ms. Daquilanea said.

Employers, the survey said, are already addressing these attrition issues. A regular career-planning discussion with employees is among the retention programs that most companies are adhering to, it said. -- Victor V. Saulon