Major study of 3,819 Filipino workers reveals workplace friendships beat AI features for retention
[Manila, June 2025] — While 62% of companies have adopted AI workplace tools, a groundbreaking new study shows employees are more likely to stay at their jobs because of friendships than fancy technology.
The finding comes from the 2025 State of HR Report by Sprout Solutions and BS Works—the Philippines’ largest workforce study involving 3,819 employees—presented at the State of HR Summit 2025.
The key discovery: Workers with three or more workplace friends are 40% more likely to stay beyond five years. Employees who say they’d be sad to leave colleagues outnumber those motivated by salary increases 3:1.
The Human Connection Formula
The research identifies three retention drivers that matter more than AI tools:
Connection: Each meaningful workplace relationship adds 8 months to average tenure.
Contribution: Employees who find clear purpose in their work stay 2.3 times longer than those focused mainly on career advancement.
Community: Companies with strong informal support networks retain staff even when offering below-market pay.
“Companies are optimizing for the wrong thing,” said Patrick Gentry, CEO of Sprout Solutions. “They’re investing in AI efficiency while ignoring human connection.”
The Generational Shift
The study reveals a striking divide: Baby Boomers prefer independent work environments, while Millennials and Gen Z want collaborative, relationship-rich workplaces—exactly what AI-augmented teams can enable.
“Gen Z doesn’t want AI to replace human interaction—they want it to create more time for meaningful collaboration,” explained Maria Lourdes Ann “L.A.” Cruz, VP of People at Lufthansa Technik Philippines.
The $720 Billion Problem
These findings could reshape how companies tackle what McKinsey estimates as a $720 billion annual cost from employee turnover globally. While most organizations focus on compensation and benefits, this research suggests a fundamentally different approach.
“If these patterns hold globally, we’re looking at a complete rethinking of retention strategy,” said Kislay Chandra, COO of Sprout Solutions. “The solution isn’t more AI tools—it’s better human connection.”
The HUMAN Protocol
Based on the research, Sprout developed a practical framework for leaders:
- Host regular cross-team social interactions
- Understand what motivates each person’s sense of purpose
- Measure workplace friendship networks
- Align AI tools with human connection goals
- Nurture interest-based communities
Early adopters report 25% better retention within six months.
About the Summit
The State of HR Summit 2025 brought together 500+ business leaders at Manila’s Crowne Plaza Galleria, featuring executives from Tala, Canva, and Lufthansa Technik Philippines. The event also unveiled Sidekick Central, Sprout’s new AI platform that helps teams achieve 40% productivity gains.
About the Research
The 2025 State of HR Report surveyed 3,819 employees across industries and age groups—the largest workplace study conducted in the Philippines.
About Sprout Solutions
Now celebrating 10 years, Sprout Solutions serves over 1,800 clients and 300,000 users across the Philippines and Thailand as the region’s largest homegrown HR Tech company.
Media Contact: Fredrick Bermudez | fbermudez@sprout.ph | +63 916 695 6911
Full Report: https://bit.ly/SOHRReportMedia
Event Photos: Press Release State of HR 2025
