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 Business Process Outsourcing (BPO) companies, 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 relationship, 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, superior-subordinate relationship, rewards and recognition, and career development have significant effects on employee turnover in BPO companies in the Philippines. These results provide insights for BPO companies to develop targeted retention strategies, highlighting the importance in prioritizing key factors that influence employee engagement and satisfaction to reduce turnover rates in the competitive BPO industry in the Philippines.