Why Do Employees Quit: A Study of Factors Affecting Employee Turnover in Business Process Outsourcing (BPO) Companies in The Philippines

Abstract

Employee turnover is a critical issue for many industries, including the Business Process Outsourcing (BPO) companies, which has been seriously impacting productivity, operational efficiency, and cost. This study aims to explore the factors affecting employee turnover in BPO companies in the Philippines. Using a quantitative research approach, the study examines the significant effect of compensation and benefits, work environment and company culture, superior-subordinate relationships, rewards and recognition, and career development on turnover intentions. Using a convenient sampling technique, data were gathered through a structured Google Forms questionnaire distributed to BPO employees, and the reliability of the variables was measured with Cronbach’s Alpha. The findings suggest that specific factors such as compensation and benefits (p = .000), superior-subordinate relationships (p = .000), rewards and recognition (p = .000), and career development (p = .014) significantly affects employee turnover in BPO companies in the Philippines. This means that employees are more likely to stay with their employers if these factors are managed effectively and aligned with their expectations. On the other hand, work environment and company culture (p = .330) were found to have no significant effect on employee turnover. These results provide guidelines to BPO companies to develop retention strategies to reduce turnover rates in the competitive BPO industry in the Philippines.