Staff retention overtakes hiring as country’s top HR challenge

MANILA  -Employee retention has taken precedence over recruitment matters among human resources (HR) professionals in the Philippines, highlighting a shift in the priorities of companies in the country when it comes to handling workers.

This is according to the 2023 State of HR Report by human resources solutions firm Sprout released on Thursday, which drew data from an online survey of over 400 HR professionals and more than 2,200 employees in the Philippines.

In the report, employee retention garnered the highest score at 23 percent as the top area of focus, with employee management and recruitment taking the other top two spots at 16.9 percent and 13 percent.

The results of the 2023 report contrast that of last year’s, when recruitment was the top focus at 33 percent, with handling complaints and lawsuits, as well as compensation and benefits being the next two and scoring 32 percent and 20 percent, respectively.

Shifting priorities

“The shift emphasizes the significance of retaining talent and cultivating a dedicated workforce, as evidenced by the emphasis on recruitment in both years,” the report said.

“Employee satisfaction and retention have a profound impact on organizations. Employees serve as the lifeblood of every organization and are the key drivers of success,” the report also noted as a key takeaway.

Another important finding was that almost a third of HR professionals, at 32 percent, also noted that job roles in similar industries but have remote work opportunities as the top reason for attrition.

This phenomenon, the report says, highlights the importance of a competitive salary and benefits package for local companies to continue retaining desired employees.

Still, report also found that 33.4 percent of HR professionals felt uncertain about transitioning to an on-site work arrangement, a trend which suggests less resistance to working in-person in a physical office compared to the year before.

READ: Key to talent retention: Learning and development

READ: Flexible working may stem costly staff turnover