Like many other industries reeling from the effects of COVID-19, foreign businesses that are outsourcing contractual work need to adjust and start leading their employees in the new normal amidst shifting labor force priorities. The key to keeping your workforce on board, even beyond a contract’s term, is to consider what new things they now consider important and integral. The shift of employee career priorities to job security is an opportunity for foreign companies to attract and retain top talents.
The Shifting Priorities of Employees Under the New Normal
JobStreet’s “Decoding Global Talent” highlights the importance of job security among surveyed Filipinos, as they had ranked it first among their work priorities. Unfortunately, foreign companies who outsource to the Philippines are not always in a position to offer this to their contractors and freelancers.
To secure the workforce’s needs of job security, foreign companies need to be registered as official Philippine businesses. The highly-skilled Filipino talents seek benefits such as healthcare and social security. The Philippine Social Security System under the Republic Act No. 8282 offers Filipinos the following insurance benefits from the listed organizations:
- Home Development Mutual Fund (HDMF) or the Pag-IBIG fund offers housing loans to both private and government employees.
- Social Security System (SSS) provides private employees and their dependents protection against sickness, disability, death, and old age.
- Philippine Health Insurance Corporation (PhilHealth) gives employees a means to pay for illness treatments and hospital stays.
In addition to insurance benefits, Filipino workers also get paid leaves, 13th-month pay, and separation pay according to government regulations. While foreign businesses hire Filipinos on a freelance basis, the provision of these benefits would affirm that they are part of the country’s business ecosystem. Filipinos feel more assured in their roles when they are treated as employees rather than contractors. This feeling of assurance is increased when they also receive the benefits mandated by the Philippine government.
Formalize Your Business with EnterPH
Business registration in the Philippines can be a tedious process. We at EnterPH can work with you to accelerate every step — from mapping out the set-up process, to officially registering your name. Once registered, you will be able to provide members of your workforce and potential employees with the job security they seek.
Schedule a consultation today with our team of experts.
Rocky Chan is a lawyer and business consultant who excels in corporate formation, immigration procedures, and client relations. In the last 7 years, he honed his craft in the field of foreign investment consultancy.
