According to several studies, Business Process Outsourcing (BPO), a well-known strategy by companies which operates the non-core functions of a company, is experiencing a downturn in the industry according to the huge turnout of employee attrition which impacts the company’s performance and competitiveness.  Thus, the study aims to identify factors affecting employee retention in the Philippine BPO industry by integrating Job Embeddedness Theory utilizing Minitab 19 Statistical software to perform Multiple Regression Analysis. A self-administered questionnaire was distributed through convenience sampling, gathering 710 respondents at least 18 years old and currently/previously employed in a Philippine BPO company. Results show that Rewards and Recognition, Employee Engagement, Fit, Job Satisfaction are significant variables affecting employee retention among employees in the Philippine BPO Industry. The researchers have provided a strong model and important findings to easily understand the significant factors which will enable BPO companies in the Philippines to strategically position themselves by improving company policies to avoid unnecessary costs about monetary and performance-related setbacks.