The Philippines has been increasingly attracting businesses from around the world due to its highly skilled and talented workforce, strong English proficiency, and lower labor costs.
The country has a young and highly educated population, with a literacy rate of over 98%, and over 600,000 students graduating from colleges and universities each year.
The sobriquet “BPO capital of the world” (BPO being “Business Process Outsourcing”) is appropriately given to the Philippines because most companies have outsourced their business operations and processes to the Philippines.
More than 1.43 million people in the Philippines work in the BPO industry, generating revenues of more than $29.1 billion.
With over 100 million people living in the Phillippines, one can throw a stone and hit a suitable talent that will contribute immensely to the organization.
The country also has a high English proficiency rate, making it easier for foreign companies to communicate with their employees.
In addition, the Philippines has a business-friendly environment, with supportive government policies, tax incentives, and a growing economy.
The Philippine government has implemented various measures to promote foreign investment, such as the Foreign Investment Negative List, which allows foreign companies to own up to 100% of Philippine-based businesses in certain industries.
However, like any business venture, hiring employees in the Philippines also presents some challenges.
Cultural differences, communication barriers, and legal and administrative requirements can be significant obstacles to overcome.
For instance, managing a remote team with employees from different cultural backgrounds requires an understanding of cultural nuances and diversity.
Despite the challenges, hiring employees in the Philippines can be a highly rewarding endeavor for companies looking to grow their businesses.
With proper planning and management, businesses can build a successful and productive team that can help drive growth and profitability.
In the following sections, we will explore the benefits, and tips for hiring employees in the Philippines, to help businesses make informed decisions and build successful teams.
Before we venture further into this article, we like to share who we are and what we do.
About 9cv9
9cv9 is a business tech startup based in Singapore with a strong presence all over the world.
With over six years of startup and business experience, and being highly involved in connecting with thousands of companies and startups, the 9cv9 team has listed some important learning points in this overview of the benefits of hiring talents and employees in the Philippines.
If your company needs recruitment and headhunting services in the Philippines, you can use 9cv9 headhunting and recruitment services in the Philippines to hire top Filipino talents and candidates. Find out more here, or send over an email to hello@9cv9.com.
Benefits of Hiring Employees and Talents in the Philippines (Updated in 2023)
- Cost Savings
- Highly Skilled and Talented Workforce
- Business-Friendly Environment
- Cultural Compatibility
- Time Zone Advantage
- Access to Top Talent
- Strong Work Ethics
- Familiarity with Western Culture
Cost Savings
Compared to developed countries, labor costs in the Philippines are relatively low, making it an attractive option for businesses looking to reduce their expenses.
This is mainly due to the lower cost of living in the Philippines, which translates to lower salaries and benefits for employees.
The daily minimum wage amounts in 2021 were between US$ 6.57 to US$ 11.17 which can be seen in the table below.
According to Paylab, the range of salaries of the workforce in the Philippines is between 12,000 PHP (216 USD) to 43,047 PHP (775 USD).
Comparing to the United States, whereby the average monthly salary amount stood at 4,585 USD in Jan 2023, compared with the previous figure of 4,531 USD in Dec 2022.
That means by hiring in the Philippines, companies can save up to 95% of their salary expenses.
It was reported recently that Sky Television plans to lay off around 170 staff and looking to outsource the majority of its call center operations to the Philippines, saving it millions of dollars.
They have mentioned they will be hiring 200 call center staff in the Philippines.
Large companies have been capitalizing on the differences in wage levels between their countries and that of the Philippines and found it worthwhile to hire talent in the Philippines.
Moreover, software developers and tech talents in the Philippines are affordable with an entry-level (with less than 1 year of experience) web developer’s salary ranges from P 13,000 — P 31,000 per month which is equal to approximately 550 USD at the top limit.
If you are keen to kickstart hiring some top tech developers and software engineers at a fraction of your operating cost in the Philippines, we have written a complete guide to hiring tech talents in the Philippines here.
Highly Skilled and Talented Workforce
The Philippines has a highly skilled and talented workforce, which is another advantage for businesses.
Filipinos are known for their English proficiency, with the country ranking 18 in the world in terms of English proficiency, making communication with foreign companies much easier.
The literacy rate of people in The Philippines is 99.27%. This means almost all the workforce and employees in the Philippines have basic reading and writing skills and this makes it easier for companies to hire low-level admin and virtual assistant-type roles in the Philippines.
The relatively high amount of educated workforce in the Philippines ensures that businesses can hire employees who have the necessary skills and knowledge to perform their job duties effectively.
Business-Friendly Environment
The Philippines has a business-friendly environment, with supportive government policies, tax incentives, and a growing economy.
The Philippine government has implemented various measures to promote foreign investment, such as the 2022 Foreign Investment Negative List, which allows foreign companies to own up to 100% of Philippine-based businesses in certain industries.
Cultural Compatibility
Cultural compatibility is an important benefit of hiring employees in the Philippines.
Filipinos are known for their warm and hospitable nature, which makes them an excellent fit for customer service, virtual assistant roles, and other positions that require them to interact with clients and customers.
They are generally friendly, courteous, and respectful, which makes them an asset to any business.
Filipinos are also adaptable and flexible, which allows them to work well in different business cultures and settings.
They are open to learning new things and are quick to adapt to changes in their work environment.
This flexibility also makes them excellent team players, as they can work well with others from different cultural backgrounds.
Another aspect of cultural compatibility is language proficiency.
As mentioned earlier, Filipinos have a high level of English proficiency, which makes it easier for them to communicate with their foreign employers and clients.
They are able to understand and communicate in English with ease, which is a significant advantage for businesses that operate in English-speaking markets.
Cultural compatibility also extends to work ethics and values.
Filipinos have a strong work ethic and are often dedicated and loyal to their employers.
They take pride in their work and are willing to go the extra mile to get the job done.
Additionally, many Filipinos are family-oriented, and they often have a deep sense of respect for authority and a desire to please their superiors.
Overall, cultural compatibility is an important benefit of hiring employees in the Philippines.
It makes it easier for businesses to build productive and successful teams, as employees are able to work well with each other and with their foreign clients and employers.
This advantage is something that sets the Philippines apart from other outsourcing destinations and makes it an attractive choice for businesses looking to hire talented employees.
Time Zone Advantage
The Philippines is located in the GMT+8 time zone, which is just a few hours ahead of many other countries in the Western Hemisphere, such as the United States, Canada, and Australia.
This means that businesses in these countries can easily communicate with their employees in the Philippines in real-time, without having to work late nights or early mornings.
For example, if a business in the United States needs to have a conference call with its employees in the Philippines, it can schedule the call during regular business hours, without worrying about any significant time difference.
This allows for more efficient collaboration and teamwork, without any inconvenience to either party.
The time zone advantage also allows for better customer service.
If a business has clients in a different time zone, they can hire employees in the Philippines to provide customer support during their clients’ business hours.
This ensures that clients are always able to get the support they need, without having to wait for hours or days for a response.
Most employees in the Philippines are familiar with working across different time zone with the terms “night shift” or “day shift” being common jargon thrown around during the job interview process.
In addition, the time zone advantage also helps with project management.
With employees in the Philippines working during their daytime hours, businesses can ensure that project timelines are met and deadlines are not missed.
This is especially important for businesses that have strict deadlines or require real-time updates on their projects.
Overall, the time zone advantage is a significant benefit of hiring employees in the Philippines.
It allows businesses to communicate with their employees and clients in real time, which improves collaboration, customer service, and project management.
This advantage is something that can help businesses to be more efficient, productive, and successful.
Access to Top Talent
The Philippines has a large and highly-educated workforce, with many professionals specializing in fields such as engineering, IT, healthcare, finance, and more.
As a result, businesses that choose to hire employees in the Philippines have access to a vast pool of talented and skilled workers who can help them achieve their goals.
One of the reasons for the high level of education and expertise in the Philippines is the country’s emphasis on education.
Filipinos place a high value on education, and as a result, there are many excellent universities and colleges in the country that produce graduates with specialized skills and knowledge.
For businesses, this means that they can find employees who have the specific skills and expertise that they need to succeed. They can hire professionals who are experts in their field, and who have the experience and knowledge to help the business grow.
Another advantage of hiring top talent in the Philippines is that many Filipinos have a strong work ethic and a desire to succeed. They are often dedicated and committed to their work, and are willing to put in the time and effort needed to achieve their goals. This work ethic can be a significant asset to businesses, as it can help to drive productivity and ensure that projects are completed on time and to a high standard.
In addition, many Filipinos are fluent in English, which is an important advantage for businesses that operate in English-speaking markets. They are able to communicate clearly and effectively with their foreign clients and employers, which helps to improve collaboration and productivity.
Overall, having access to top talent in the Philippines is a significant advantage for businesses.
It allows them to hire skilled and knowledgeable professionals who can help them to achieve their goals and grow their businesses.
It also provides businesses with a competitive edge, as they can benefit from the expertise, work ethic, and language proficiency of Filipino workers.
Strong Work Ethics
Filipinos are known for having a strong work ethic and dedication to their jobs.
They take their work seriously and are committed to doing their best, which can be a significant advantage for businesses that choose to hire employees in the Philippines.
One of the reasons for the strong work ethic of Filipinos is their cultural values.
Filipinos value hard work, diligence, and a solid commitment to family and community.
They are also known for their respect for authority and their willingness to follow rules and guidelines.
This work ethic is reflected in the way that Filipino employees approach their jobs.
They are often dedicated to their work and are willing to put in the time and effort needed to achieve their goals. They are also often adaptable and can work well under pressure, which can be a significant asset to businesses that operate in fast-paced environments.
In addition, Filipino employees are often known for their loyalty and dedication to their employers.
They are committed to their jobs and are willing to go the extra mile to help their employers succeed.
This can help to foster a positive work environment and can lead to long-term employee retention, which can be a significant advantage for businesses.
Overall, the high work ethics of Filipino employees are a significant advantage for businesses that hire in the Philippines.
It provides businesses with dedicated and committed employees who are willing to work hard to help their employers achieve their goals.
This work ethic can help businesses to improve productivity, efficiency, and overall success.
If your company needs employees with strong work ethics in the Philippines, then look no further. You can use 9cv9 headhunting and recruitment services in the Philippines to hire top Filipino talents and candidates. Find out more here, or send over an email to hello@9cv9.com.
Familiarity with Western Culture
One of the key advantages of hiring employees in the Philippines is that many Filipinos have a strong familiarity with Western culture.
This is due in part to the country’s history of colonization by Western countries, as well as its close ties to the United States, which has had a significant cultural influence on the country.
This familiarity with Western culture can be a significant advantage for businesses that operate in Western markets or work with Western clients.
Filipino employees are often well-versed in the customs, traditions, and business practices of Western countries, which can help to improve communication and collaboration.
In addition, many Filipinos are fluent in English, which is an important language for businesses that operate in Western markets.
They are able to communicate effectively with their Western clients and colleagues, which can help to build strong relationships and improve business outcomes.
Moreover, Filipino employees are often adept at adapting to different cultures, which can be a significant asset for businesses that operate in international markets.
They are able to navigate cultural differences and work effectively with people from different backgrounds, which can help to improve business outcomes and build strong relationships.
Overall, familiarity with the Western culture of employees in the Philippines is a significant advantage for businesses that operate in Western markets or work with Western clients.
It provides businesses with employees who are well-versed in Western culture and customs, which can help to improve communication, collaboration, and overall success.
The best news is 9cv9 can help your company in hiring talent in the Philippines.
We have one free job posting on our highly acclaimed job portal for all employers and hiring managers. Start by posting the job free (no credit card needed) here.
Else, follow 3,000+ companies in using 9cv9 headhunting and recruitment services in the Philippines to hire top Filipino talents and candidates. Find out more here, or send over an email to hello@9cv9.com.
Conclusion
In conclusion, there are numerous compelling reasons why businesses should consider hiring employees in the Philippines.
From the country’s large pool of highly skilled workers to its favorable time zone, cultural compatibility, and familiarity with Western culture, there are many advantages to outsourcing or establishing operations in the Philippines.
Filipino employees are known for their strong work ethics, dedication to their jobs, and adaptability, making them valuable assets to businesses in various industries.
The country’s robust educational system and proficiency in English also ensure that businesses have access to a talented workforce capable of providing high-quality services.
Moreover, the cost savings associated with hiring employees in the Philippines make it a particularly attractive option for businesses looking to reduce their labor costs and improve their bottom line.
Overall, businesses that choose to hire employees in the Philippines can expect to benefit from a skilled and dedicated workforce, a favorable time zone, and a culturally compatible work environment, among other advantages.
With these benefits in mind, it’s clear why the Philippines has become a popular destination for businesses looking to expand their operations and tap into a talented and cost-effective workforce.
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