Advisers

Riva R. Manalo, CHRA

Discipline

Business administration

Abstract

Employee retention presents a major challenge in the telecommunications industry, particularly in the Philippine context. Blue Age Trading, a postpaid field sales partner of Smart Communications Inc. and a home distributor for PLDT Inc. in Caloocan City, reports a turnover rate of 40% to 50%. This study aims to determine the key factors influencing employee retention in the company, utilizing Herzberg’s Two-Factor Theory. The focus includes intrinsic motivators such as achievement, recognition, the nature of work, responsibility, advancement, and personal growth. This study adopts a descriptive research design and involves 155 employees selected through simple random sampling to ensure fair representation. A researcher-made survey questionnaire, validated and tested for reliability, served as the primary instrument. Data were analyzed using frequency and percentage, weighted mean, Kruskal-Wallis H-test, and ranking procedures to interpret respondent perceptions on various retention factors. The majority of respondents were young (42.58%), single (61.94%), and had less than three years of tenure (62.58%). Respondents indicated high levels of agreement regarding achievement (M = 3.52), recognition (M = 3.48), the nature of work (M = 3.47), responsibility (M = 3.50), advancement (M = 3.47), and personal growth (M = 3.45). Despite these favorable perceptions, significant challenges in retention were noted, such as difficulty in meeting sales targets, technical problems, insufficient benefits, and limited career growth opportunities. A statistically significant difference was found in the perception of “the work itself” among different age groups (p = 0.0296). The findings underscore the importance of intrinsic motivators in retaining employees, particularly through fostering achievement, meaningful work, and recognition. To address the identified challenges, it is recommended that the company implement structured retention initiatives, including competitive benefits, leadership development, and skill-building programs. These strategies can promote higher engagement, job satisfaction, and long-term retention. The results provide insights for human resource managers and business leaders in designing targeted employee retention programs within the telecommunications sector.

Keywords

employee retention, intrinsic motivation, herzberg’s two-factor theory, employee turnover, telecommunications industry, workforce engagement