Navigating the Hiring Process in the Philippines: Key Considerations

Joel Lienard
September 25, 2023 

The Philippines has emerged as a global hub for outsourcing and offshoring, attracting businesses from around the world. With its skilled workforce, proficiency in English, and cost-effective labour, it's no surprise that many companies choose to establish their presence in this Southeast Asian nation. However, when it comes to hiring in the Philippines, there are several key considerations to keep in mind to ensure a successful recruitment process. Additionally, if you decide to partner with Archax; a qualified outsourcing company to assist with the hiring process, here's what you should expect from us:

1. Local Labor Laws and Regulations:

   Understanding the labour laws and regulations in the Philippines is paramount. As a qualified outsourcing company Archax is well-versed in these laws and ensure that the hiring process complies with local regulations. We shall guide you through the legal aspects of employment in the Philippines, including minimum wage requirements, overtime rules, and employee benefits such as mandatory health insurance and retirement contributions.  

2. Recruitment Channels:

   As proficient outsourcing company Archax has access to a wide range of recruitment channels in the Philippines. We can leverage our local networks and partnerships to source suitable candidates efficiently. Additionally, we have a digital presence on job portals and social media platforms, where many job seekers in the Philippines actively search for employment opportunities.

3. Cultural Sensitivity:

   As a qualified outsourcing partner we possess cultural sensitivity and can provide insights into the local culture. We can help bridge cultural gaps and ensure that your company's values align with the local workforce. For instance, the Philippines places a strong emphasis on family, so understanding this cultural value can help create a positive and supportive work environment for your employees.

4. Language Proficiency:

   Our HR Team assesses language proficiency accurately. They conduct language assessments or interviews to ensure that candidates possess the necessary language skills required for their roles. English proficiency is generally high in the Philippines, but evaluating candidates' communication skills and fluency is crucial for roles that require extensive verbal and written communication.

5. Education and Skills:

   A reputable outsourcing company should provide thorough evaluations of candidates' educational backgrounds and skills. Archax has a robust screening process, including interviews, skills assessments, and reference checks. This ensures that candidates not only have the required qualifications on paper but also possess the practical skills necessary for their job roles.

6. Compensation and Benefits:

   Offering competitive compensation packages is essential to attract and retain top talent in the Philippines. A qualified outsourcing company should guide you on setting competitive salary ranges that align with industry standards in the Philippines. Archax also provides recommendations on benefits such as health insurance, performance-based bonuses, and opportunities for career advancement, which are attractive incentives for candidates.

7. Remote vs. On-site Work:

   If remote work arrangements are a consideration, the outsourcing company should be flexible and capable of managing both on-site and remote teams. Archax has the infrastructure in place to facilitate remote work when necessary. Moreover, we assist in setting up remote work policies and tools for effective collaboration.

8. Employment Contracts:

   Archax assists in drafting clear and comprehensive employment contracts that comply with local labour laws. We ensure that all terms of employment are accurately documented, including job responsibilities, compensation details, benefits, and termination procedures. This legal clarity is essential to protect both your company and the employees.

9. Recruitment Timelines:

   We’ve been there ourselves, so as a qualified outsourcing company, we shall provide realistic timelines for the recruitment process. We can manage and/or assist the process efficiently, from candidate sourcing and initial interviews to final hiring decisions and onboarding. Effective time management is crucial to secure top talent before competitors do.

10. Employee Retention:

    Employee retention is as important as recruitment. We understand the importance of retaining your workforce. We can assist in creating a positive work environment that includes opportunities for career growth, regular feedback and performance evaluations, and recognition programs. Employee retention strategies should be an integral part of your hiring and your HR provider support services.

11. Work Permits and Visas:

    If hiring expatriates or foreign workers, we are knowledgeable about visa and work permit requirements. We can assist facilitate the visa application process when needed, ensuring that your foreign employees can legally work in the Philippines. This includes securing necessary visas, permits, and documentation.

12. Background Checks:

    Thorough background checks should be conducted by your outsourcing company to verify candidates' credentials, work history, and references. Archax can ensure that you hire individuals with the right qualifications and integrity. Background checks may include criminal record checks, credit checks (if relevant to the job), and reference interviews with previous employers.

13. Onboarding and Training:

    The outsourcing partner should assist in the development of a robust onboarding and training program to help new hires integrate smoothly into your organization. Effective onboarding should include orientation sessions, training modules, and access to necessary resources. It's essential to provide new employees with the tools they need to excel in their roles and align with your company's culture and values. Archax can also assist you building the right employee’s journey from onboarding, training to offboarding.

14. Local Employment Norms:

    A qualified outsourcing company should be well-acquainted with local employment norms and practices. Archax can help you navigate customs and etiquette, fostering a positive work environment. Understanding local employment norms, such as the practice of addressing colleagues with a warm "Good morning" or "Good afternoon" daily, can promote positive interactions in the workplace.

15. Expertise in Outsourcing Services:

    If you are considering outsourcing some or all of your HR functions, the outsourcing company should have expertise in providing outsourcing services. Archax can handle tasks such as payroll management, benefits administration, and employee records management efficiently and accurately. Outsourcing HR functions can streamline your operations and allow you to focus on core business activities.

In conclusion, hiring in the Philippines is a multifaceted process that requires a deep understanding of local dynamics and compliance with labour laws. Partnering with a qualified outsourcing company like Archax can simplify this process significantly. You should expect us to have expertise in local labour laws, access to effective recruitment channels, cultural sensitivity, language proficiency assessment, thorough verification of qualifications, guidance on compensation packages, flexibility for remote work, assistance with employment contracts, realistic recruitment timelines, employee retention strategies, knowledge of visa requirements, rigorous background checks, comprehensive onboarding, familiarity with local employment norms, and proficiency in providing outsourcing services. By choosing Archax as your outsourcing partner, you can streamline the hiring process, build a successful workforce in the Philippines, and ensure legal compliance while focusing on your core business objectives.

Please contact us for more information.