Reasons to Offshore in the Philippines
Talent Team’s headquarters are based in Cebu City, in the Philippines. While our headquarters are based in Cebu, we can employ remote workers from anywhere in the country. There are several reasons why we chose to setup our operations in the Philippines:
Cost savings
One of the primary reasons is cost savings. The cost of labour in the Philippines is significantly lower than in Australia, the UK or USA. This means that foreign companies can save a considerable amount of money on salaries and other operational costs by offshoring to the Philippines.
Skilled workforce
The Philippines has a large, skilled and educated workforce, particularly in the areas of IT, customer service, and back-office operations. Australian companies can tap into this talent pool to find the skilled workers they need at a lower cost than they would in Australia.
Cultural compatibility
The Philippines has a strong cultural affinity with Australia. The Philippines has a large English-speaking population, and many Filipinos are familiar with Australian culture and customs, making it easier for Australian companies to work with them.
Time zone compatibility
The Philippines is in a similar time zone to Australia, making it easier for Australian companies to communicate with their offshore teams in real-time and collaborate on projects. Perth operates in the same time zone, whereas the East Coast is two hours ahead of Philippine time.
Government support
The Philippine government actively promotes offshoring and offers a range of incentives to attract foreign companies to set up operations in the country.
Overall, offshoring to the Philippines provides Australian companies with a cost-effective way to access a skilled and culturally compatible workforce, while still being able to maintain control over their operations.
Benefits to Offshoring
Complimenting your Australian staff with offshore Filipino staff can bring a range of benefits to your business. Here are some potential benefits:
Cost savings
An obvious benefit known to many is the saving on labour costs by hiring staff from the Philippines. Typically, you will pay only 25% – 30% of the cost of a similar employee in Australia.
Increased productivity
With a larger team, you may be able to complete projects more quickly and efficiently, which can increase productivity overall.
Ease of Scaling
With a much lower investment per head, your business can hire more easily, with less risk and without having to grow your revenue at such a high rate to cover your employment costs.
Diversified skillset
Filipino staff may have a different skillset than your Australian staff, allowing you to broaden your team’s capabilities and expertise.
Round-the-clock coverage
By having staff located in different time zones, you can potentially provide 24/7 coverage to your customers, increasing your responsiveness and customer satisfaction.
Increased cultural awareness
Having staff from different cultures can increase your team’s cultural awareness and sensitivity, which can be a valuable asset in today’s global marketplace.
It is important to note that while there are many potential benefits to hiring offshore staff, there may also be challenges, such as communication barriers and the need to manage remote teams effectively. However, with the right strategies and tools in place, complementing your Australian staff with offshore Filipino staff can be a successful and beneficial approach for your business.
General Tips for Offshoring
Working with offshore Filipino staff can be an effective way to get quality work done at a lower cost. Here are some tips to help you work effectively with offshore Filipino staff:
Build a strong relationship
Take the time to build a good relationship with your offshore team members. This can be done by setting up regular video conference calls, asking about their family and interests, and showing genuine interest in their culture.
Provide clear instructions
To avoid confusion or misinterpretation, provide clear instructions on the tasks that need to be completed. This can be done through video tutorials, detailed written instructions, and by providing examples.
Communicate regularly
Communication is key when working with an offshore team. Establish regular communication channels and stick to them. Use instant messaging tools, email, video conferencing, or project management software to ensure everyone is on the same page.
Encourage feedback
Encourage your offshore team members to provide feedback on their work and the processes in place. This can help to identify areas of improvement and increase their sense of ownership and engagement.
Show appreciation
Showing appreciation for your offshore team members’ work can go a long way in building a positive relationship. Consider sending small tokens of appreciation or recognizing their efforts in team meetings or emails.
Be aware of cultural differences
Be aware of the cultural differences that may exist between you and your offshore team members. This can help to avoid misunderstandings and build a more collaborative working relationship.
By following these tips, you can build a strong and effective working relationship with your offshore Filipino staff.
Offshore Staff Retention
Retaining Filipino staff offshore requires a combination of strategies that focus on meeting their needs and expectations, as well as ensuring that they feel valued and appreciated. Here are some tips on how to best retain Filipino staff offshore:
Provide Competitive Compensation
One of the most critical factors in retaining Filipino staff offshore is providing them with competitive compensation packages. Ensure that their salaries are fair and commensurate with the market rates for their roles. Talent Team will assess this through the recruitment process and against market expectations.
Offer Career Development Opportunities
Providing opportunities for professional growth and development is essential to retaining Filipino staff. You can offer training, mentoring, and coaching programs to help them acquire new skills and advance in their careers.
Create a Positive Work Environment
A positive work environment is crucial to keeping Filipino staff happy and motivated. Talent Team provides a comfortable and safe workspace, in a modern and well equipped office space in Cebu’s Business Park, and for office-based staff we will organise team-building activities, and encourage open communication to foster a sense of community.
Recognize and Reward Good Work
Filipino staff appreciate recognition for their contributions, whether it be a simple thank-you or a more formal reward program. Recognizing their hard work and dedication helps build loyalty and inspires them to continue performing at a high level.
Be Culturally Sensitive
Filipinos have a distinct cultural background, and understanding and respecting their culture can go a long way in building strong relationships with them. Learn about their traditions, customs, and values, and incorporate these into your workplace policies and practices.