Talent Retention in Sri Lanka, Why Employees Leave Despite Opportunities?
Technological advancements have changed the entire landscape
of businesses at present resulting in a highly competitive and globalized economy
where talent retention is considered a strategic priority. In Sri lanka, this complexity
is intense, with an increasing number of skilled employees seeking opportunities
abroad or frequent job hopping despite the availability of local employment. These
aspects often lead organizations to wonder why talent retention has become an
extremely difficult facet to execute.
The framework of push pull theory of migration clearly
emphasizes that the movement of employees is significantly influenced by the Push
factors such as low remuneration, economic uncertainty, limited career growth
within the home country and pull factors which are based on overseas work include
aspects such as higher compensation, refined living standards and growing
career prospects (Mohamed and Abdul-Talib, 2020). Within Sri lanka, these dynamics
significantly impact the outflow of experienced and skilled employees, specifically
in the tourism, IT and healthcare sectors.
Adoring these aspects is the Herzberg’s Two Factor Theory which
consists of two different facets which include hygiene factors and motivators. While
hygiene factors such as salary, working conditions and policies prevent dissatisfaction
they do not guarantee long term commitment from employees. Employee retention can
be encouraged through motivating factors such as achievement, growth and recognition (Hasan
and Mishra, 2025).
Figure 1: Push Pull Factors Influencing Labor
Migration
Source: (Cartwright and Barrett, 2024)
While Figure 1 presents an holistic view of migration factors, in the Sri Lankan context, economic conditions, career opportunities, and higher wages are the important drivers of talent mobility. In the Sri Lankan context, the outflow of employees is on a constant increase due to the evolving digital transformations platforms and global pressure.
Vast research features the rising challenges in employee retention.
Over 312,000 Sri Lankans immigrated in 2024 to countries such as Kuwait, United
Arab Emirates and Qatar significantly impacting more than 1.3 million departures
between 2019 and 2024. The tourism sector which is a vital sector of the Sri
Lanka economy saw an outflow of more than 60% employees between 2020 and 2023 (Daily
FT, 2025). This data represents an enormous challenge organizations face to
retain employees, and this dilemma is influenced by broader economic and global
facets.
Figure 2: Herzberg’s Two-Factor Theory
Source: (Lumen Learning, n.d.)
Figure 2 illustrates that though hygiene factors such as salary, policies and conditions may lower dissatisfaction, motivators such as growth and recognition are fundamental for long term employee retention. Organizations that do not recognize these intrinsic considerations may risk employees leaving even if monetary rewards are provided (Shinde, 2025).
The focal point to be considered is that many firms still
consider retention as a response oriented narrative, mainly providing the
workforce with short term incentives and salary increments. However, these
procedures do not address the root cause of deeper issues in regard to leadership
and organizational culture. Firms should incorporate a strategic approach which
consists of constant learning measures, supportive leadership and career development
prospects in order to attain sustainable retention (Sharmina, 2025).
Conclusion
This concludes that talent retention within Sri Lanka is not
function of compensation but an intricate interaction between external
migration pressure and intrinsic organizational aspects. Firms should adapt from
negotiation based approaches to meaningful workforce experiences that encourage
empowerment, recognition and engagement. Leaders who find the perfect balance
between these external and internal dynamics will be able to address various complexities
related to retaining talent and achieving sustained organizational success.
Cartwright, J. and Barrett, B. (2024) Reasons for
Migration (Cambridge (CIE) IGCSE Geography): Revision Note. Save My Exams.
Updated on 21 November 2024. Available at:
https://www.savemyexams.com/igcse/geography/cie/20/revision-notes/1-population-and-settlement/1-2-migration/1-2-1-reasons-for-migration/
[Accessed 14 April 2026].
Daily FT (2025) ‘2024 sets record for Sri Lankans going
abroad for work’, Daily FT, 1 January. Available at:
https://www.ft.lk/front-page/2024-sets-record-for-Sri-Lankans-going-abroad-for-work/44-771235
[Accessed 14 April 2026].
Hasan, M.M. and Mishra, V. (2025) Impact of Herzberg’s
Two-Factor Theory and Its Influence on Employee Retention: A Sectoral
Comparative Study in Bangladesh. Kelaniya Journal of Human Resource
Management. Available at:
https://kjhrm.sljol.info/articles/152/files/6875e9c465a98.pdf [Accessed 14
April 2026].
Lumen Learning (n.d.) Herzberg’s Two-Factor Theory. Organizational
Behavior and Human Relations. Available at:
https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/herzbergs-two-factor-theory/
[Accessed 14 April 2026].
Mohamed, M.A. and Abdul-Talib, N. (2020) ‘Push–pull factors
influencing international return migration intentions: a systematic literature
review’, Journal of Enterprising Communities: People and Places in the
Global Economy, 14(2), pp. 231–246. doi: 10.1108/JEC-01-2020-000.
Sharmina, A. (2025) Leadership Strategies for Sustainable: Workplace Safety and Employee Retention. Published 19 March 2025. LinkedIn. Available at: https://www.linkedin.com/pulse/leadership-strategies-sustainable-workplace-safety-med-hrd-vocbc [Accessed 14 April 2026]
Shinde, S. (2025) ‘Motivation and Retention in the Modern
Workplace: Adapting Maslow, Herzberg, and Vroom for Retention Strategies in the
Digital Era’, Research Review International Journal of Multidisciplinary,
10(5), pp. 205–214. doi: 10.31305/rrijm.2025.v10.n5.020. Available at:
https://rrjournals.com/ [Accessed 14 April 2026].
Really interesting reaf. You’ve clearly shown that salary alone isn’t enough to retain people, especially with all the push and pull factors influencing employees today. It feels like many organizations still rely on short term fixes like pay increases, instead of focusing on growth, recognition, and overall work experience.
ReplyDeleteDo you think Sri Lankan companies are starting to shift towards this, or are they still mostly reacting when employees decide to leave?
Yes I agree, many Sri Lankan companies still tend to react only when employees decide to leave, often relying on quick fixes like salary adjustments. However, there are signs of change, especially in IT and service sectors, where firms are starting to invest more in career growth, recognition, and flexible work arrangements. The shift is gradual, but organizations that focus on building meaningful employee experiences rather than short term incentives will be better positioned to retain young talent in the long run.
DeleteThis is a strong and well-structured blog that effectively uses Push–Pull Theory of Migration and Herzberg's Two-Factor Theory to explain why employees leave despite local opportunities.
ReplyDeleteHowever, it raises an important question: if organizations already understand both external pressures (global opportunities) and internal factors (motivation and culture), why do many still rely mainly on short-term salary increases instead of building long-term career growth and leadership quality?
Additionally, in a globalized job market, can Sri Lankan firms realistically compete on pay alone, or should they focus more on creating meaningful employee experiences that reduce the desire to leave?
Many organizations already understand the external push factors and internal motivators, yet still fall back on short term salary increases. Competing on pay alone is difficult, especially in a globalized market where larger firms can always offer more. What truly makes a difference is building long term value through career development, leadership quality, and a positive work culture. As Herzberg’s Two Factor Theory reminds us, real motivation comes from growth, recognition, and meaningful work rather than just hygiene factors like pay. For Sri Lankan firms, focusing on authentic EVP outcomes and employee experiences will be far more sustainable than relying only on financial incentives.
DeleteYour article gives a very relevant and practical perspective on talent retention in the Sri Lankan context. I especially liked how you highlighted that retaining employees is not only about salary, but also about factors like career growth, recognition, and workplace environment. This is very important because studies also show that employee engagement, empowerment, and satisfaction play a major role in retaining talent in Sri Lankan organizations.
ReplyDeleteYou also did a great job explaining the current challenges such as employee turnover and the increasing tendency of younger employees to switch jobs frequently. This reflects the real situation in many industries today, where organizations must focus more on long-term employee experience rather than short-term incentives.
What specific strategies can Sri Lankan companies implement to retain young talent who are more likely to switch jobs frequently compared to previous generations?
Retention today goes beyond salary. To keep young talent engaged, Sri Lankan companies can focus on clear career pathways, continuous learning opportunities, and recognition programs that highlight achievements. Flexible work arrangements and supportive leadership also play a big role in meeting the expectations of younger generations. Most importantly, creating a positive workplace culture where employees feel valued and empowered helps reduce the tendency to switch jobs frequently. This way, organizations can build long term commitment by offering real growth and meaningful experiences rather than relying only on short term incentives.
DeleteYour content on talent retention in Sri Lanka is very good and easy to understand. I like how you explained why employees leave and why retention is important.
ReplyDeleteBut I want to ask something. Even if companies know the reasons, can they really solve these issues in practice, like salary and workload problems?
A very practical question indeed, knowing the reasons is one thing, but solving issues like salary and workload is harder in practice. Companies may not be able to fix everything immediately, yet they can take small steps such as balancing fair pay with recognition, improving work processes, and offering growth opportunities. Even partial improvements can make employees feel valued and reduce turnover.
DeleteThis blog gives a clear picture of the big challenges around keeping talent in Sri Lanka. I like how you pointed out that retention isn’t just about pay—it’s also about growth, good leadership, and the overall employee experience. It shows that companies need a more complete approach to keep people engaged. The real question is: how can organisations balance smart retention strategies with tight budgets, especially when competition is high and resources are limited?
ReplyDelete