Abstract

The food service company in the Philippines continues to grow rapidly, thus creating a need for organizations to adopt efficient human resource management practices to retain skilled employees. Fringe benefits have become an important component of employee compensation packages and are associated with motivation, job satisfaction, and retention. Nevertheless, some food service organizations are still experiencing difficulties in integrating their benefits programs with the needs of employees, which could be associated with retention rates. This study was conducted to determine the relationship between fringe benefits and employee retention at Michelin Cuisine and Fine Foods, Inc. in Cubao, Quezon City. A descriptive-correlational quantitative research design was used. The study utilized a structured questionnaire to collect data from employees of the company. Frequency distribution, weighted mean, and Pearson correlation were used to analyze the data. Results revealed that employees positively assessed the company’s fringe benefits with a composite weighted mean of 3.26 (Strongly Agree). Meanwhile, employee retention obtained a composite weighted mean of 3.22 (Agree), indicating generally positive levels of motivation, commitment, and appreciation among employees. Furthermore, correlation analysis showed a significant moderate positive relationship between fringe benefits and employee retention (r = 0.56, p = 0.0001), suggesting that stronger fringe benefits are associated with a greater likelihood of employees remaining with the organization. In conclusion, well-managed and comprehensive fringe benefits are significantly associated with employee retention. Aligning benefit programs with employees’ needs may support motivation, loyalty, and organizational stability.