Voluntary turnover, attrition in Philippines reached 15.9% in 2023
The median salary increase budget in the Philippines is estimated to reach 5.7% in 2024 as talent challenges lay ahead for employers this year.
The projected hike is equal to the 5.7% actual salary increase recorded by WTW in its compensation survey, which also noted that the average salary hike has been rising "steadily" in the country over the last few years since the pandemic.
By industry, the Financial Services and Shared Services and Outsourcing have the highest projected salary increases with six per cent. Other industries reported:
The steady growth of average salary hike comes amid a shifting labour market in the Philippines, according to Patrick Marquina, Head of Work & Rewards, Philippines, WTW.
"Voluntary turnover and attrition continue to increase and reached 15.9% in 2023 compared to 14.2% in 2022," Marquina said in a statement. "The typical reasons cited for leaving were better pay and growth opportunity, relocation/family migration, and flexible work arrangement or work-life balance."
According to the official, this trend will likely remain this year and employers will continue to face "significant talent challenges" including the retention and attraction of key talent.
"Winning the talent race will require employers to stay focused on balancing the entire package of rewards they offer, both monetary and non-monetary, in order to remain competitive and align with employees' needs and wants," Marquina said.
The shifting labour market not only covers changing employee needs and wants, as WTW also found that the younger generation of workers are beginning to take over the workforce.
In 2023, WTW said millennials and Gen Z employees already make up 77% of the Philippine workforce and will likely hit nearly 80% in the future.
To address the major shift in the workforce, employers are preparing and expecting for:
Marquina said these changes can "give rise to a range of interrelated people, business, and operational risks."
"Organisations that have effectively managed the risk accompanying work transformation are more likely to report outperforming their peers than those that have not when it comes to financial performance, employee retention and productivity," he said.
