Hiring in the Philippines: A Smart Strategy for Scaling Your Team Efficiently
July 7, 2025
You're watching your company grow, but the costs are growing just as fast. Finding the right people is tough, and in your home country, it can feel like you're paying a fortune for top talent. This pressure to scale smartly is something every CEO feels, and it's a make or break challenge.
Many founders are discovering a powerful solution by looking across the globe. The strategy of hiring in the Philippines, in particular, has become a game changer for businesses that need to expand without breaking the bank. You might have heard whispers about it, but you're probably wondering what it really involves.
Is it complicated? Is the talent truly as good as people say? This isn't just about saving money; it's about building a sustainable, global team. You'll learn how to approach hiring in the Philippines the right way, from understanding the culture to handling the legal bits, giving you a serious advantage.
You're looking for more than just lower operational costs. You need skilled, dedicated people who can help you push your company forward. The Philippines offers a compelling mix of talent, work ethic, and financial sense that is hard to find anywhere else.
One of the biggest hurdles with global teams is communication. This is where Filipino professionals really shine. The Philippines consistently ranks high for English proficiency, often topping lists for business English.
English is an official language and is taught in schools from an early age, making communication with your team smooth and natural. This isn't just about casual conversation. You'll find professionals with excellent written and verbal skills, perfect for roles in a customer service centre, marketing communications, and sales.
Their strong command of English means less time is lost to misunderstandings and more time is spent getting work done. This high level of proficiency extends to technical fields, from IT to financial services, making integration seamless.
There's a concept in Filipino culture called "malasakit," which doesn't have a direct English translation. It's a deep sense of care and ownership, as if the company's success were their own. When you find team members with this trait, they treat your business with a level of dedication that is truly remarkable.
This translates to incredible loyalty. Filipino employees are known for sticking with companies that treat them well, leading to lower turnover rates. For a growing company, that stability is priceless because it means you spend less time on recruitment and more time building.
This loyalty is a two-way street; by providing a stable job and fair compensation, you foster a relationship that benefits both the employee and the business for years to come. Many will build a long-term career with a company that invests in them.
Let's talk about the numbers, because they matter. The cost of living in the Philippines is much lower than in the US, UK, or Australia. Because of this, you can offer very competitive local salaries that are still a fraction of what you would pay at home.
This doesn't mean you're hiring "cheap labor." You're hiring top tier professionals at a market rate that reflects their local economy. It's an arrangement that gives your business incredible financial leverage while giving someone a great, well paying job with a competitive salary type.
These savings can be directly reinvested into other growth areas of your business. This could mean expanding your marketing budget, developing new products, or even hiring more staff from the Philippines to accelerate your progress even faster. Imagine how much quicker you could scale with that advantage.
The difference is clear. These savings let you hire two or three people for the price of one person back home. Imagine how much faster you could grow your business with that kind of team expansion for roles across office support, general management, and even specialized fields.
For decades, Filipino culture has been influenced by Spain and the United States. This has created a workforce that is adaptable and familiar with Western business practices. Many professionals have experience working for American, European, or Australian companies, so they understand the expectations.
This cultural alignment makes integration into your existing team much easier. They get the importance of deadlines, proactive communication, and teamwork. This familiarity is a massive advantage, especially for businesses in consumer products or communication technology that require a nuanced understanding of Western markets.
You'll find the cultural gap is surprisingly small, allowing you to build a cohesive global team from day one. This ease of integration helps new hires become productive members of your company almost immediately.
Jumping into a new country's job market can feel intimidating, especially with unfamiliar laws. But getting the legal part right from the start is what separates a successful hire from a future headache. Luckily, the framework for hiring in the Philippines is straightforward once you know the key rules.
The foundation of Philippine employment is the Labor Code of the Philippines. One of the first things to know is the probationary period. You can hire an employee on a trial basis for up to six months.
During this time, you can assess their skills and fit. If they meet the standards you clearly set out at the beginning, they become a regular employee with more protections. This period gives you a safety net, but it's important to be fair and transparent about your expectations.
Other important rules govern minimum wage, which varies by region, and working hours. The standard work week is 40 hours over five days, with overtime pay mandated for any work beyond that. Understanding these basics is fundamental to compliance.
This is a government mandated benefit that surprises many foreign employers. All regular employees in the Philippines are entitled to "13th month pay." It's an extra payment equal to one month of their basic salary.
You must pay this on or before December 24th of each year. It's a standard part of the compensation package, so you should budget for it from the beginning. For employees who have worked for less than a year, the amount is pro-rated based on the months they have served.
For many Filipino families, this pay is crucial for holiday expenses and savings, and it's deeply ingrained in the work culture. Failing to pay it is a serious violation of labor law and can result in significant penalties.
If you hire someone as a direct employee, you're also responsible for making sure contributions are made to three government agencies. These are the equivalent of social security and health programs in Western countries. It shows you're invested in their long term wellbeing.
The main programs are:
Both the employer and employee contribute a portion of the salary to these funds. While it adds a bit of administrative work, it's a standard part of being a responsible employer in the country. This is also something a good partner can help you manage, simplifying the process for your company.
When you've decided to hire from the Philippines, you face a big choice. Should you hire them as an independent contractor or as a direct employee? The path you choose has big implications for your legal duties, your budget, and your relationship with your new team member.
For many small businesses, hiring contractors is the easiest entry point. The appeal is clear: you avoid a lot of the complex local labor laws. You aren't responsible for withholding taxes or paying for mandatory benefits like SSS, PhilHealth, or the 13th month pay.
But managing contractors on your own comes with risks — especially when it comes to compliance, contracts, and payments. That’s why smart companies often work with a Contractor of Record (COR) like Fronted. We take care of compliance, contracts, invoicing, and payouts — while you keep the flexibility of a contractor relationship.
COR gives you the ease of hiring a contractor, but with added structure, protection, and peace of mind. It's ideal for flexible roles where direct employment isn’t required.
Just be careful: if you manage your own contractors and don’t structure things properly, you could run into problems with misclassification. That’s another reason why a COR partner is a smart move — we help you stay compliant from day one.
Want to know more? Get started today.
Hiring someone as a full time employee is a bigger commitment, but it comes with big rewards. Your employee is fully dedicated to your company. This fosters greater loyalty and allows them to integrate more deeply into your company culture.
Full-time employment often leads to better results for roles that require deep company knowledge, like human resources or real estate management. You also have more control over the work arrangement and can expect them to adhere to company policies and schedules.
The downside is the complexity. To hire an employee directly, you would typically need to set up a legal business entity in the Philippines. This process is expensive, slow, and involves a ton of paperwork. It's often not a practical option for a small, fast growing company, which is why another solution has become so popular.
For this reason, many companies turn to an Employer of Record (EOR) like Fronted — which gives you the benefits of full employment without the hassle of setting up a local legal entity. Want to know more? Get started today.
What if you could get all the benefits of a full-time employee without the legal and administrative nightmare of setting up a foreign company? That’s exactly what an Employer of Record, or EOR, does. And if you're not ready to commit to full employment, Fronted can also act as your Contractor of Record (COR), offering a flexible alternative with less complexity.
An EOR is a third party company that legally employs your chosen candidate in the Philippines on your behalf. They handle all the tough stuff. This includes payroll, taxes, benefits administration, and making sure everything complies with Philippine labor laws.
You get to focus on managing your employee's day to day work and integrating them into your team. The EOR takes on the legal responsibilities of being the employer, removing a massive burden from your shoulders. This includes managing paid leave, contributions, and termination procedures according to local law.
Using an EOR is the perfect middle ground. It lets you hire Filipino talent as full time, committed team members. You get the security and compliance of direct employment with the ease of hiring a contractor. This is how smart companies are scaling their global teams quickly and safely.
You're convinced of the benefits and you know the legal routes. Now, where do you actually find these amazing people? Getting the recruitment process right is how you turn a good idea into a great hire.
The talent pool is huge, but you need to know where to look. Some platforms are better than others for finding high quality professionals. Your job search should start on platforms known for their extensive databases of Filipino talent.
A very popular job site is OnlineJobs.ph, which is dedicated specifically to connecting Filipino remote workers with foreign employers. Major platforms like JobStreet and Indeed Philippines are also excellent places to post job vacancies. These sites attract millions of users looking to advance their career.
Platforms like JobStreet have a broad reach across Southeast Asia and beyond, with a strong employer site presence in countries like New Zealand, the Philippines, Singapore, Thailand, Hong Kong, Indonesia, Malaysia, and even Australia. When you want to explore companies and talent, these broad networks are invaluable. For high level talent, LinkedIn is becoming increasingly effective as more Filipino professionals in cities like Metro Manila, Quezon City, and Davao City build their online presence there.
Your job description is your first impression, so make it count. Be incredibly clear about the role and responsibilities. Avoid vague language and spell out exactly what you expect them to do each day.
List the specific skills and software proficiency you need. Also, be upfront about the practical details like the work arrangement and whether a remote option is available. Mention the time zone they will need to work in, and be open about the salary type and range.
Top talent appreciates transparency and will be more likely to apply if you are direct and honest from the start. You should also include some information about your company culture and the opportunities for growth to attract ambitious candidates looking for more than just a job.
A structured interview process will help you filter candidates effectively. A good approach involves several stages. Start with a review of applications to weed out anyone who doesn't meet the basic criteria; you can often hide refinements on job boards to help with this.
Next, a short screening call can help you assess their communication skills and basic fit. For technical roles, a paid skills test or portfolio review is a must. This is particularly important for jobs in data management or technology.
The final stage should be a video interview focused on culture fit, problem solving skills, and their long term goals. Look for people who are not just skilled, but also proactive and eager to learn. This is your chance to find someone who embodies "malasakit."
Your job isn't done once they've accepted the offer. A strong onboarding process sets your new hire up for success and makes them feel like part of the team right away. This is where you can offer paid training to get them up to speed on your systems.
Prepare a welcome packet with information about your company's mission, values, and key team members. Make sure they have access to all the necessary tools and software before day one. For remote employees, this includes setting up communication channels like Slack and project management tools.
Schedule introductory meetings with the people they will be working with. Consistent communication is everything in the first few weeks. A well planned onboarding shows you're invested in their success and paves the way for a long and productive working relationship.
Hiring someone is just the beginning of the journey. To build a truly great, long lasting relationship, you need to understand their culture. A little cultural awareness can make a world of difference in managing your remote Filipino team members effectively.
Filipino professionals are generally polite and non confrontational. This can sometimes lead to indirect communication, especially when it comes to problems or negative feedback. It's tied to the cultural idea of "pakikisama" or getting along, and "hiya," which is a sense of shame or saving face.
Instead of being blunt, they might hint at a problem. As a manager, you need to learn to read between the lines and create a safe space where they feel comfortable being direct. Regular, friendly one-on-one meetings can help build this trust.
When giving feedback, frame it constructively and privately. Start with praise, then gently introduce the area for improvement. This approach respects their culture and will get you a much better result than direct criticism.
Family is the absolute center of life in the Philippines. You will find that your employees are incredibly dedicated to supporting their relatives. This means that family events, like a child's school ceremony or caring for a sick parent, are a top priority.
Showing flexibility and understanding will earn you immense loyalty. Also, be aware of the national holidays. The Philippines has many public holidays, especially around Easter (Holy Week) and Christmas, which are deeply significant.
Plan for these absences, because for them, this time with family is non negotiable and a cherished part of their lives. Acknowledging these cultural cornerstones shows respect and helps you manage workflow expectations realistically. You might also encounter community services events that are important locally.
Small gestures of appreciation can go a long way. Remember their birthdays, celebrate work anniversaries, and acknowledge their hard work publicly within the team. This kind of recognition builds morale and strengthens their connection to the company.
Take the time to build a personal rapport. Ask about their weekend, their family, or their hobbies. A friendly, caring attitude shows you see them as more than just a worker, especially in key business hubs like Mandaluyong City or Cebu City.
This personal connection is fundamental to fostering that sense of "malasakit" and building a team that is not just productive, but also happy and loyal. Offering small perks, like a meal allowance or contributing to their internet bill for a remote remote worker, can also make a huge impact.
Building a world class team is one of the biggest challenges for a growing company. The traditional ways of hiring can be slow and incredibly expensive. For this reason, more and more smart CEOs are looking at a global talent strategy for career advice and growth.
As you've learned, it offers a powerful path to scaling your business. You get access to a massive pool of loyal, English speaking talent at a cost that makes sense. It is simple to search job vacancies on an employer site and find qualified candidates for nearly any role imaginable.
The legal framework, while different, is clear when you know the basics of contractors, employees, and EORs. Making the choice for hiring in the Philippines isn't just a cost cutting measure; it's a strategic move that can give your company the fuel it needs to outpace the competition. It's about building a stronger, more diverse, and more resilient business for the future.
Thinking about hiring in the Philippines?
Fronted helps fast-growing companies build reliable, cost-effective teams in the Philippines and beyond.
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