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Philippine Employment Conditions


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Ricky

I'm looking at the possibility of outsourcing some back office work to the Philippines, mainly because my wife speaks the language so it seems a logical choice.  It's all early days, we still have a number of legal issues to figure out including whether customer data can be handled overseas and whether our insurance can be expanded to cover employee fraud etc in the Philippines.

But I do know that there is a lot of experience on the group and thought i'd canvass some thoughts and identify any pitfalls before we even get going. 

We are trying to work out what sort of employment conditions we'd be looking at and have been been advised BPO/Call Centre starting salaries are circa 12,000 php a month on a 45 hour week, plus a 13 month bonus every year. 
 

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Soupeod
50 minutes ago, Ricky said:

I'm looking at the possibility of outsourcing some back office work to the Philippines, mainly because my wife speaks the language so it seems a logical choice.  It's all early days, we still have a number of legal issues to figure out including whether customer data can be handled overseas and whether our insurance can be expanded to cover employee fraud etc in the Philippines.

But I do know that there is a lot of experience on the group and thought i'd canvass some thoughts and identify any pitfalls before we even get going. 

We are trying to work out what sort of employment conditions we'd be looking at and have been been advised BPO/Call Centre starting salaries are circa 12,000 php a month on a 45 hour week, plus a 13 month bonus every year. 
 

I know a gents who owns a business in the US and here.

He had to start a new business here to support his US business at which he required a Filipino partner who own 60% and he owns 40%. 
The business is IAW Filipino law.

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Ricky
56 minutes ago, Soupeod said:

I know a gents who owns a business in the US and here.

He had to start a new business here to support his US business at which he required a Filipino partner who own 60% and he owns 40%. 
The business is IAW Filipino law.

Thanks for the response, that’s pretty much what I expected. Hopefully 60% wife, 40% myself would work. 

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MickyG
On 3/19/2021 at 12:28 AM, Ricky said:

I'm looking at the possibility of outsourcing some back office work to the Philippines, mainly because my wife speaks the language so it seems a logical choice.  It's all early days, we still have a number of legal issues to figure out including whether customer data can be handled overseas and whether our insurance can be expanded to cover employee fraud etc in the Philippines.

But I do know that there is a lot of experience on the group and thought i'd canvass some thoughts and identify any pitfalls before we even get going. 

We are trying to work out what sort of employment conditions we'd be looking at and have been been advised BPO/Call Centre starting salaries are circa 12,000 php a month on a 45 hour week, plus a 13 month bonus every year. 
 

Not sure where you 12,000 a month figure from,  it would be hard to have salaries as low as this for skill sets needed even in far flung provinces. Suggest you approach DOLE and ask for regional pay structures across the nation. add pagibig, sss, phil health in to the equation. Plus so many days here are ''special days'' it is almost adds another 13 month pay cost in.

Many set up through PEZA for additional tax benefits and not because you can cut staff costs

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to_dave007
On 3/19/2021 at 3:28 PM, Ricky said:

have been been advised BPO/Call Centre starting salaries are circa 12,000 php a month on a 45 hour week, plus a 13 month bonus every year. 

Wife tried out call center employment with a 3 month stint at Concentrix in IT Park, and many of her class mates have worked in call centers.

12,000 a month is on the low end in Cebu City.  Starting "salaries" can range up to 20,000.. and a lot depends on who the foreign end client is, and what level of skills and experience the client wants in their agents. Most good call centers have to work hard to recruit as many "good" agents as they need, and they frequently have to sweeten the pot with shift bonuses..  performance bonus.. and some allowances that I didn't understand..  Plus the good ones will pay SSS, PhilHealth and Pag-Ibig, and of course they deduct taxes to remit to the BIR.

I remember calling HSBC in Canada and I learned part way through the call that I was dealing with an agent in Makati..  This agent was VERY professional and was one of the very BEST English speakers I have encountered.  And there is NO WAY this agent was earning only 12,000 peso a month.  In other words you get what you pay for.

Lastly.. there is a LOT of turnover in the call center business.  Those that are SERIOUS to earn money as call center agents will hop to a better opportunity as soon as they see one.  And those that aren't, will leave for assorted other reasons including pregnancy, boyfriends and "my work mate was too boastful".  So the BPO companies are constantly recruiting and training new staff.

Oh.. one more thing.  13th month isn't an incentive.  It's the law.  

 

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Paddy

I used to work for a very large global organization that delivered both IT and BPO services from many countries around the world, including the Philippines, to “mostly” North American and European clients. Our lowest level recruits in the Philippines had to be degree holders with at least 2 years work experience. The general level of English was quite good for all and expected to be high for those who would interact with the  clients or the clients’ customers. 

If you are planning a fairly small family type operation with a captive client there are probably some short cuts available to you. If you will be competing for clients, with a larger organization, you’ll have to compete for the good workers too. 

As has been said, 12k is a bit on the low side for the good ones. Minimum wage in Cebu is around 400 per day. With a usual 6 day working week, you’re getting close to 10k for minimum wage equivalent. 

When you factor in standard benefits, PhilHealth, SSS, Pag-Ibig, Vacation, Sick Days, Shift Allowances, 13th Month (pay rather than bonus) and any performance incentives, you start to get up there. If you plan to be in business for any length of time (10 years or more), you also might need to factor in Retirement Pay - which is also legislated. A manager/supervisor earning 50k who works for you for 10-20 odd years and hits 60 years old could cost you a ball park 500k lump sum on retirement - unless you have some sort of retirement plan that pays better than the legislated minimum. 

We found that there was a degree of arbitrage on salary costs but precious little on infrastructure and IT costs. Our loaded costs were a few dollars per hour for the lower level workers but much the same as western rates for the senior manager types (~5000 work force here). 

Lastly (and apologies for the length of the post) your points about data privacy are good ones but generally not insurmountable. 

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