Filipino Workers Stay for Friends, Not Features: The Real Story Behind AI in the Workplace

In a time when businesses are racing to adopt artificial intelligence and automation, a surprising insight has emerged from the Philippines: employees stay not because of technology, but because of each other.

Sprout Solutions, in partnership with BS Works, recently shared the results of the 2025 State of HR Report—the most in-depth workforce study in the country, based on responses from 3,819 employees. What they found challenges popular beliefs about what truly keeps people in their jobs. Despite 62% of Filipino workplaces now using AI, the biggest factor in retention isn’t tech—it’s friendship.

According to the study, people who have at least three close friendships at work are 40% more likely to stick around for five years or more. Even more telling: workers are three times more likely to stay because they don’t want to leave their coworkers than because they were offered a salary bump.

The True Retention Formula

Sprout’s data points to what they call the “3 C’s” of long-term employee loyalty:

• Connection – The more social groups an employee belongs to, the longer they tend to stay.
• Contribution – People who feel that their work has meaning and impact stick around far longer than those chasing promotions.
• Community – Even companies that don’t offer remote work benefits can retain talent if they encourage informal support networks.

While companies continue investing in AI to boost productivity, the research makes one thing clear: human connection still matters more.

What Younger Generations Want

The study also revealed how the younger workforce thinks differently. While Baby Boomers are often more independent at work, Millennials and Gen Z are drawn to collaboration and connection. For them, AI should support teamwork, not replace it.

Lufthansa Technik Philippines' VP of People, L.A. Cruz, emphasized this shift by saying Gen Z expects tech to give them more time to build real relationships, not isolate them.

The Real AI Gap

Even though AI tools are becoming more common, not every company is using them effectively. Those who are considered “AI-ready” see three times the adoption rate and better retention. But it turns out that readiness isn’t about having the latest software. It’s about leadership, communication, and culture.

This lines up with global findings from MIT, showing that a supportive workplace culture is more important than high-tech systems when it comes to successful AI adoption.

A Global Wake-Up Call

Globally, companies lose around $720 billion every year because of high employee turnover, according to McKinsey. While most firms focus on offering more money or perks, the Philippine experience suggests that simple human connection could be the real answer.

As Kislay Chandra, COO of Sprout Solutions, put it, “We don’t need smarter machines. We need smarter ways of connecting with each other.”

Tools and Solutions for Today’s Leaders

To help businesses apply these insights, Sprout and BS Works created the HUMAN Protocol—a practical framework that helps leaders nurture a people-first environment even in AI-powered workplaces. Some of the steps include organizing social meetups, supporting personal growth goals, and using AI in ways that promote—not replace—relationships.

Early users of the framework reported a 25% improvement in retention within just six months.

What Happened at the HR Summit

These ideas took center stage at the State of HR Summit 2025, hosted by Sprout and BS Works at Crowne Plaza Galleria. Over 500 HR and business leaders joined the event, which featured panels with top executives from Canva, Tala, and Lufthansa Technik Philippines.

Also introduced at the event was Sidekick Central, Sprout’s new AI platform designed to ease workloads for HR, payroll, and admin teams. It promises up to 40% gains in productivity while freeing up more time for teams to focus on meaningful work.

About Sprout Solutions

Celebrating 10 years in the industry, Sprout Solutions is one of Southeast Asia’s biggest HR tech companies, serving over 1,800 clients and 300,000 users. Their mission is to use AI not just for automation, but to create workplaces where people thrive—because of connection, not just convenience.