Deciding to open a new location in the Philippines requires plenty of prior planning, time, and money. One of the most important tasks of any expansion is hiring the right employees to help your new location succeed — which can be challenging if you don’t have an understanding of the country’s culture and business etiquette. While hiring employees in the Philippines may seem simple, you have to learn all of the country’s employment laws, set up a subsidiary, and add new employees to your payroll.
Instead, choose G-P. Our Service Provider Model enables you to obtain requisite services and complete projects in the Philippines with the support and assistance of designated Professionals without having to establish a legal presence in-country or be burdened with legal, HR, payroll, tax, and compliance matters in connection with hiring employees.
Recruiting in the Philippines
Learning about Filipino culture is essential when it comes to the interpersonal aspect of the recruitment process. However, it’s just as important to make sure you’re familiar with some of the more practical parts of staffing and recruiting. Be sure to put some thought into finding the best recruitment channels and making sure your company complies with the legal requirements for employers in the Philippines.
Social media is on the rise as a way for employers to connect with talented professionals in the Philippines. Facebook and LinkedIn are both popular. You might also want to look into industry-specific sites to find specialized talent. For example, GitHub is a great social platform for professionals in the IT field.
You should also make sure your company’s website is mobile-friendly, as most job seekers will use their mobile devices to explore job postings.
Laws Against Discrimination in the Philippines
As the employer, it’s your responsibility to make sure your company complies with local laws and regulations from the beginning of the recruitment process. In the Philippines, the law prohibits employers from discrimination against workers and potential hires based on:
- Religion or beliefs
- Sexual orientation
- Civil status
- Medical condition
To ensure compliance, you should avoid asking candidates direct questions related to any of these characteristics.
How to Hire Employees in the Philippines
Culture plays a huge role in how to hire employees in the Philippines. The country has strong community ties, where they consider employers to be patriarchal and responsible for taking care of employees. Filipino employees also don’t like saying “no” to superiors, friends, and colleagues, which can lead to miscommunications during contract negotiations.
Employees you choose to hire may try to negotiate a net salary instead of a gross salary. If you’re trying to hire Filipino employees under a gross salary, make sure you clarify that all the offers are the gross salary and not net.
Philippines Employment Laws
The typical workweek in the Philippines is 40 hours with a workday of eight hours, though some industries require 48-hour workweeks with overtime. Overtime is permitted and must be paid at a rate of at least 125% of the employee’s normal rate of pay.
Philippines employment compliance does include an optional six-month probationary period, but it can’t extend past six months aside from skilled apprenticeship programs.
While Filipino employees are allowed to unionize by law, collective bargaining is not common in the country. Only about 10% of the workforce is a part of a union or collective bargaining association.
Onboarding in the Philippines
The right work environment is also important to employees in the Philippines and makes a big difference for onboarding. Cutthroat office environments common in the U.S. are not successful in the Philippines, and it can deter employees from staying with your company. Instead, cultivate an environment of respect and admiration, where everyone appreciates each other’s work. Although salaries are typically low in the Philippines, offering a higher salary is a great way to keep your retention rate high.
Benefits of Hiring Outsourcing in the Philippines
Learning all of the Philippines’ employment compliance laws can take a significant amount of time and money, but being found non-compliant can hurt your company, even more, leading to fines or sanctions. G-P can help through our Service Provider Model.
Work With G-P To Expand Globally
If you’re ready to expand to the Philippines, work with a Service Provider you can trust — G-P. Contact us today to learn more about our services.