The Great Resignation, a trend that began in early 2021, saw a significant number of employees voluntarily leaving their jobs. While in some countries the impact of this trend has subsided, it continues to be a pressing issue in the Philippines.

Driven by a complex interplay of factors, the trend has left many employers grappling with high turnover rates and difficulties in attracting and retaining talent. The situation is further compounded by unique cultural and economic factors.

The 2025 Aon Employee Sentiment Study revealed that 64% of Filipino employees are either in the process of moving employers or might/will seek new employment in the next 12 months. The report said resignations are primarily driven by a variety of reasons, ranging from financial compensation to the fear of AI-driven job displacement.

“This affects not just Manila, where the right talent is more readily available, but also in cities like Cebu, Davao, and other islands within the archipelago,” said Josef Ayson, Aon’s growth lead for talent solutions.

Drivers of high attrition rates in the Philippines

One of the most prominent factors is compensation and benefits. At least 66% of Filipino employees indicated that better-than-average pay and meaningful benefits are the most influential factors when considering a potential employer. The numbers may be a sign for business leaders to look at their salary and benefits packages and align them to current market conditions to retain top talent.

However, financial considerations are not the only driving force. Career development opportunities also play a crucial role, with 83% of Filipino employees willing to forego existing benefits in exchange for a wider selection that includes programmes for career advancement. The report suggests a strong desire among Filipino workers for continuous learning and professional growth.

Adding to this complex scenario is the looming presence of technological disruption. At least 15% of Filipino employees expressed concerns about their job security and a lack of confidence in their employers’ investment in training that would prepare them for an AI-driven future. This underscores the need for organisations to proactively address these anxieties by providing clear pathways for skills development and career transition in the face of rapid technological advancements.

The desire for a better work-life balance and robust wellbeing support also remains a significant factor, with 70% of Filipino employees ranking employer-supported wellbeing initiatives, and work-life balance programmes high on their list of desired benefits.

Also Read: How to avoid sudden resignations in your team

The impact of generational differences at work

The Aon study also revealed generational nuances within the Filipino workforce, with each generation carrying its own set of priorities and expectations. Generation Z, the youngest cohort, places a high premium on work-life balance programmes, reflecting their desire for flexibility and a fulfilling life outside of work.

At the other end of the spectrum, Baby Boomers, nearing retirement, prioritise financial security and show a strong preference for retirement savings plans. Meanwhile, Millennials, caught in the middle, are driven by career ambitions and seek development opportunities to climb the corporate ladder.

These generational differences paint a vivid picture of the challenges and opportunities facing employers in the Philippines. A one-size-fits-all approach to employee engagement and retention is no longer sufficient in today’s diverse workplace. Organisations need to embrace a more nuanced and adaptable strategy, tailoring their benefits and programmes to cater to the unique needs of each generation.

This means creating a workplace that, for example, offers the flexibility and support that Gen Z craves, while also providing the stability and long-term financial security that Baby Boomers seek. For the ambitious Millennials, it means investing in robust career development programmes and creating clear pathways for advancement within the organisation.

Also Read: How to handle generational differences at work

Surviving the Philippines’ ‘Great Resignation’

To combat the ongoing wave of resignations, employers in the Philippines need to adopt a multi-pronged approach that addresses the diverse needs and expectations of their workforce. Here are some key strategies to thrive in the volatile talent market:

1) Innovate on compensation and benefits

Recognising the emphasis that Filipino employees place on competitive salaries and meaningful benefits, employers must proactively enhance their compensation and benefits packages. This involves staying informed about prevailing salary trends through regular benchmarking to ensure that compensation packages remain competitive within the industry. Employers should also offer a wide array of benefits, including health insurance, retirement plans, paid time off, and work-life balance programmes, catering to the diverse needs of their workforce.

2) Invest in skills development and career growth

To navigate the ongoing wave of resignations and build a resilient workforce, employers should prioritise upskilling and career development initiatives. This not only equips employees with the necessary skills to adapt to the changing demands of the workplace, but also demonstrates a commitment to their professional growth and advancement. By providing access to training programmes, mentorship opportunities, and clear career paths, employers can empower talent to remain competitive and engaged, reducing the likelihood of them seeking opportunities elsewhere.

3) Build work-life balance and wellbeing programmes

Recognising the growing importance of work-life balance and support, employers should prioritise initiatives that promote employee wellbeing and create a safe, supportive and healthy work environment. Offering flexible working arrangements, such as the ability to work from home or adopt flexible working hours, can empower employees to better manage their work and personal lives. Providing access to a range of wellbeing resources, including mental health programmes, stress management workshops, and fitness initiatives, can further support employee wellbeing.

4) Create a positive workplace culture

A positive and inclusive workplace culture can contribute to employee satisfaction and retention. Employers should prioritise open and honest communication between employees and management, creating a safe and transparent environment for feedback and suggestions. Recognising and rewarding employee contributions and achievements can foster a sense of value and appreciation, motivating employees to perform their best. Promoting diversity and inclusion – where every employee feels welcome, respected, and supported – is also crucial for creating a positive and thriving workplace culture.

Taking a good hard look at employee relations

The Great Resignation presents a unique opportunity for Filipino employers to re-evaluate and redefine their relationship with their employees. It is a chance to move beyond traditional models of work and embrace a more human-centric approach that prioritises employee wellbeing, career development, and a positive work environment.

While the challenges are real, the potential rewards are significant.

Businesses operating in the Philippines can stem the tide of resignations and build a more engaged, motivated, and productive workforce – but only if they are open to innovation. The result is a workplace where both employees and employers thrive.