A LATEST job market study has shown that two out of five employees or 43 percent of workers in Cebu are planning to resign from their jobs in the next 90 days, citing that their being underpaid is a top factor why they want to leave their current workplaces.
This could usher another wave of Great Resignation in Cebu even after businesses have reopened, according to online job search site Mynimo. The Great Resignation refers to a term used to describe a trend that has emerged during the Covid-19 pandemic, where a large number of workers are voluntarily quitting their jobs.
According to Mynimo’s statement: “Cebu’s ‘Great Resignation’ shows no signs of slowing down unless companies make drastic changes to address their employees’ concerns. Otherwise, Cebu-based employers risk losing more of their top talent to competitors, ultimately hurting their competitiveness and profitability.”
“When employees feel their compensation doesn’t match their skills, effort and time, it can hurt their morale, motivation and productivity. Furthermore, the lack of a fair salary can lead to financial hardships, causing stress and anxiety among employees and encouraging them to seek better employment elsewhere,” it added.
Mynimo’s survey for its 2023 Cebu Salary Report was participated in by 4,500 Cebu-based respondents. In the 2022 survey, Mynimo reported that 42 percent of Cebu-based workers had wanted to leave their jobs.
The Bukluran ng Manggagawang Pilipino (BMP), a labor group in Cebu, issued a statement on Sunday, April 30, saying that the Mynimo report shows the “suffering” of workers in the current state of the economy, and it hopes that the report will become a wake-up call to the government and industry players that there is a necessity to provide economic relief to workers by increasing the minimum wage.
“Dili mohunong ang paghawa sa empleyado kon walay buhaton ang gobyerno ug dili pod motabang ang mga negosyante,” BMP chairman Teody Navea said.
Labor groups recently refiled their petition for a P100 wage hike before the Department of Labor and Employment (Dole) 7.
BPO sector
One of the 2023 survey’s most interesting findings is that “the call center/business process outsourcing (BPO) sector had the highest average salary rate yet with the highest resignation rate, with more than 40 percent planning to leave their jobs. This industry is one of the country’s most dynamic and lucrative sectors,” the report said.
“During the height of the pandemic, the BPO sector emerged as the only employment option for many workers. However, now that other industries have regained stability, many employees are looking into the option of returning to their previous professions, leaving potential vacancies in the BPO industry,” Mynimo chief executive officer Wesley Chiongbian said in a press statement.
Other reasons
According to the 2023 Cebu Salary Report, the second most common reason for resignation is the lack of company benefits.
Company benefits are seen to be positive indicators of how much a company values its employees’ well-being and without the benefits, it can lead employees to feel undervalued and unappreciated.
The report further stated that “feeling undervalued” is another issue that leads workers to resign from their jobs, which stems from various factors, such as lack of feedback, little to no recognition, or not being acknowledged. In some cases, employees may feel their work is being taken for granted.
Another major factor is “limited growth at the company,” as the lack of growth opportunities may make workers feel stagnant in their roles and unable to contribute to significant projects or directly impact the company’s growth.
The report shows that Cebu-based workers seek job opportunities that provide growth and development, not merely a source of income.
Also, the absence of a work-life balance continues to contribute to many workers’ resignations. Many employees complain about working long hours, leading to burnout, poor performance, and dissatisfaction.