The global talent landscape is expanding every year. In 2023, 12.7% of full-time employees worldwide work entirely remotely (source). This figure is projected to reach 22% by 2025. The Philippines has emerged as a powerhouse in the remote work market. With over 1.5 million Filipinos engaged in online freelancing and remote work, the country ranks as the 6th largest market for remote talent globally (source).
For founders and business owners struggle with talent shortages and rising labor costs. This is an opportunity for countries like the Philippines.
Take the case of TechCrunch 50 finalist, Zendesk. In 2014, they set up a remote customer support team in the Philippines. It is now the backbone of their 24/7 global support operations, handling over 50,000 tickets daily.
But it's not just tech giants reaping the benefits. Small businesses like Minnesota-based ecommerce startup, Boutique Rugs, scaled their operations by hiring Filipino virtual assistants. This lead to increase in productivity and reduction in operational costs within a year.
The Philippines offers a unique blend of three things.
- High English proficiency (ranking 2nd in Asia according to the EF English Proficiency Index) (source).
- Cultural affinity with Western business practices.
- A tech-savvy workforce.
These factors make it an ideal destination for remote hiring.
But how do you tap into this goldmine of talent effectively?
This blog post discusses the practical strategies to hire and manage Filipino remote workers. We'll explore everything from the hiring process to building a thriving remote culture.
Why Choose Filipino Remote Workers?
Large Talent Pool
The Philippines has always been a preferred country for outsourcing work. More than 52% of Filipino workers worked remotely even before the pandemic (source). This offers businesses a large pool of talent to choose from.
High English Proficiency
The Philippines ranks 20th globally in English Proficiency and 2nd in Asia. This means smoother communication and fewer language barriers for your business.
Cultural Compatibility
Many Filipino universities use American-style curricula. This educational approach has several benefits:
- Graduates are familiar with Western business concepts.
- They understand common business methodologies used in the U.S. and other Western countries.
- This knowledge helps them adapt quickly to working with Western companies.
Cost-Effectiveness
Hiring Filipino employees often results in significant cost savings compared to local talent in developed countries.
Virtual Assistants (VAs)
- US: $15-$25 per hour
- Philippines: $3-$7 per hour
Customer Service Representatives
- US: $12-$20 per hour
- Philippines: $4-$8 per hour
Content Writers
- US: $20-$50 per hour
- Philippines: $5-$15 per hour
Graphic Designers
- US: $25-$75 per hour
- Philippines: $7-$20 per hour
Junior Software Developers
- US: $30-$60 per hour
- Philippines: $10-$20 per hour
Quality Assurance (QA) Testers
- US: $25-$50 per hour
- Philippines: $8-$15 per hour
Web Developers
- US: $30-$100 per hour
- Philippines: $10-$30 per hour
Digital Marketers
- US: $25-$75 per hour
- Philippines: $8-$15 per hour
Accountants and Bookkeepers
- US: $20-$50 per hour
- Philippines: $7-$15 per hour
However, it's crucial to remember that cost shouldn't be the only factor in your decision.
Strong Work Ethic
Filipino workers are known for their strong work ethic, but let's look at what this actually means:
- Lower turnover rates: The average job tenure in the Philippines is 6.8 years (source), which is higher than in many Western countries.
- Overtime willingness: Many Filipino workers are open to flexible hours and occasional overtime. This can be crucial for meeting deadlines or handling time-sensitive tasks.
Popular Remote Jobs for Filipino Workers
Whether you need technical expertise, creative input, or administrative support, there's likely a skilled Filipino professional ready to contribute to your team's success.
The Philippines offers a rich pool of skilled professionals for remote work, making it an attractive option for businesses worldwide. Filipino workers are known for their strong work ethic and adaptability across various fields. In customer service, they excel with their friendly demeanor and strong English skills. The tech sector is well-represented too, with capable software developers keeping pace with global standards. Virtual assistants from the Philippines are valued for their versatility and efficiency in handling a wide range of tasks.
Beyond these roles, you'll find skilled data entry specialists, creative content writers, and digital marketing experts who understand the nuances of online engagement. Filipino graphic designers bring both creativity and technical proficiency to visual projects. For businesses needing financial expertise, there are experienced accountants and bookkeepers ready to manage complex financial tasks.
This diversity of skills allows companies to find talented professionals for almost any role, making the Philippines a valuable resource for building or expanding remote teams.
The Hiring Process: A Step-by-Step Guide
A. Crafting an Effective Job Post
When creating your job post, be clear about your technical requirements. For instance, instead of simply stating "Python developer needed," specify "Must be proficient in Python 3.8+ and Django 3.0+." This level of detail attracts candidates with the exact skills you need.
Time zone compatibility is crucial for remote work success. Clearly state your expectations for overlap hours. For example, "We require at least 4 hours of overlap with EST (UTC-5)."
B. Where to Find Top Filipino Talent
OnlineJobs.ph is a platform specifically designed for hiring Filipino remote workers. It offers features tailored to this market, such as ID Proof, which verifies candidates' identities. At an average cost of $69/month for unlimited job posts, it's a cost-effective option for accessing a large pool of Filipino talent.
You can also use social media in your talent search. Leverage platforms like LinkedIn and Facebook to reach potential candidates. Facebook Groups like "Filipino Freelancers" can also be a good place to find candidates.
If you'd instead like support on hiring, Typescouts experienced recruiters can help take the heavy lifting of recruitment off your hands and provide you with premium, pre-vetted remote talent in the Philippines, specific to your role and needs.
C. Effective Screening Techniques
Have a two-step interview process to efficiently assess candidates. Start with a short video call focused on communication skills and cultural fit.
Then, have a longer interview with the shortlisted candidates. Discuss their experience in detail, their skills and future goals.
In the next round, conduct a short skill assessment.
D. Legal and Payment Matters
Most foreign companies hire Filipinos as contractors rather than employees. This arrangement offers simpler setup without the need to establish a local entity in the Philippines. However, it also means less control over working hours and methods. Weigh these pros and cons carefully based on your business needs and management style.
When it comes to payments, popular options include Wise (formerly TransferWise), PayPal, and Payoneer. Wise often offers the best exchange rates, potentially saving you money on international transfers. Regardless of the platform you choose, ensure it's easily accessible in the Philippines to avoid payment delays.
Contracts are crucial for setting clear expectations. Use e-signing platforms like DocuSign for easy, legally binding signatures. Key clauses to include are confidentiality agreements, ownership of work product, and termination conditions.
Managing Your Filipino Remote Team
Effective Onboarding
- 1. Create a Simple Welcome Package:
- Record a brief video introducing yourself and the company
- Provide a one-page document outlining your startup's mission and goals
- Share a list of essential tools and accounts they'll need
- 2. Personal Onboarding:
- Schedule daily 15-minute video calls for the first week
- Be available for questions and guidance
- 3. Clear Communication Guidelines:
- Establish preferred channels (e.g., Slack, email)
- Set expectations for response times
- Schedule regular check-ins
Performance Management
- 1. Frequent Check-ins:
- Have brief daily stand-ups to discuss tasks and blockers
- Schedule weekly one-on-one video calls for deeper discussions
- 2. Informal Reviews:
- Provide regular feedback on performance
- Discuss their goals and how they align with the startup's vision
Building a Strong Remote Work Relationship
- 1. Personal Connection:
- Take time to learn about their background and interests
- Share appropriate details about your own life and startup journey
- 2. Recognition and Appreciation:
- Regularly acknowledge good work and extra effort
- Consider small bonuses or perks for exceptional performance
- 3. Inclusive Practices:
- Involve them in brainstorming and decision-making when appropriate
- Share company updates and milestones to foster a sense of belonging
Compensation and Benefits
Salary Considerations
1. Setting Competitive Salaries:
Salary ranges based on recent data from Philippine job boards:
- Junior Virtual Assistants: Junior Virtual Assistants: $300 - $500 per month.
- Experienced Software Developers: $1,200 - $3,000 per month
- Digital Marketers: $600 - $1,600 per month.
2. Payment Methods:
- Pay in US Dollars (USD) to provide stability for employees.
- Use Wise for transfers - fees are typically 1% or less, much lower than bank transfers
3. Addressing Currency Fluctuations:
- Review salaries quarterly
- Consider a 'currency adjustment' bonus if local currency weakens significantly against USD
Additional Perks
To attract and retain top talent, consider offering:
- Health and Wellness:
- Offer HMO coverage: Costs about $25 - $30 monthly per employee
- Provide mental health support: Partner with services like MindNation (rates start at $6 per session)
- Skill Development:
- Allocate a yearly learning budget: $15 - $40 per employee
- Suggestion: Partner with Coursera for Business (about $400 per user annually) for unlimited course access
- Work-Life Balance Boosters:
- Implement "No Meeting Fridays" to allow focused work time
- Offer a home office setup allowance: One-time $200 - $400 per employee
- Provide high-speed internet allowance: $20 - $30 monthly
- Recognition Programs:
- Set up a peer-to-peer recognition system using tools like Bonusly
- Budget about $20 per employee per month for rewards
Overcoming Common Challenges
Bridging Time Zone Gaps
- Use Overlap Time Wisely:
- Schedule team meetings during the 3-4 hour overlap between Philippine and U.S. time zones.
- If you're in New York, aim for 8-10 PM EST meetings, which is 8-10 AM the next day in Manila.
- Alternatively, consider US Time Zone Workers:
- Many Filipino professionals are willing to work during US business hours.
- This flexibility can provide real-time collaboration and immediate communication.
- Ensure fair compensation for non-standard hours.
- Implement a "Follow the Sun" Model:
- Assign tasks that can be completed and handed off at the end of each team's workday.
- Use Trello or Asana to create clear task handoff processes.
- Set Clear Expectations:
- Define response times for different communication channels.
- Example: Emails within 24 hours, Slack messages within 2 hours during work hours.
Technology Issues
- Conduct a Tech Audit:
- Before hiring, ask candidates to run an internet speed test (e.g., Speedtest.net).
- Set minimum requirements: 10 Mbps download, 5 Mbps upload.
- Provide a Tech Stipend:
- Offer a monthly allowance (e.g., $50-$100) for internet and electricity backup.
- Require receipts to ensure the stipend is used for work-related tech needs.
- Establish Backup Protocols:
- Create a communication plan for power or internet outages.
- Example: Switch to mobile data and notify the team via WhatsApp.
Success Story: Tech Startup Scaling with Filipino Developers
TechInnovate, a US-based SaaS startup, successfully built a remote development team in the Philippines. Here's how they did it:
- Clear Job Descriptions: They created detailed job descriptions outlining required skills and experience.
- Thorough Vetting Process: Candidates went through coding tests, technical interviews, and culture fit assessments.
- Competitive Compensation: TechInnovate offered salaries above the local market rate, along with performance bonuses.
- Intentional Integration: They paired each Filipino developer with a US-based mentor and included them in all team meetings and decisions.
- Career Development: The company provided learning stipends and clear growth paths within the organization.
Results:
- Accelerated product development timeline
- Reduced development costs compared to US-based hiring
- Improved team diversity and 24/7 development capability
- 90% retention rate of Filipino developers after two years
Final thoughts
Hiring remote workers from the Philippines is a strategic move for your business. You get access to a skilled workforce at competitive rates. By following the guidelines in this guide, you can start the hiring process effectively and build a strong, productive remote team.
Success in managing Filipino remote workers comes from treating them as valued team members, respecting their culture, and providing opportunities for growth. With the right approach, your Filipino remote team can become a key driver of your business's growth and success.
Whether you're a startup, a small business, or a larger company, there's likely a Filipino employee who can help drive your business forward. Tell us your requirements, and we'll help you find the best fit for your business. Fill out a quick form, and we'll be in touch within 24 hours to start building your dream remote team.
