Cost savings and ethics go hand in hand when outsourcing to the Philippines.
Outsourcing to the Philippines and complementing local teams with dedicated staff in the Philippines is mainstream for UK and Australian businesses. It just makes ‘good business sense’ since Philippines employment costs are radically lower than in the UK and Australia. And the Philippines has a deep pool of English speaking, highly qualified, IT and accounting talent.
For many UK and Australian businesses, choosing not to outsource increasingly equates to accepting being less competitive than rivals. So outsourcing is less a question of ‘yes’ or ‘no’ but ‘how’ and ‘make it fair for everyone.’
Responsible UK and Australian businesses want to ensure that their Philippines team members (and their communities) are treated ethically. They want to know that pay, conditions, benefits, and professional development opportunities are provided that are equivalent to their local hires.
Ethical outsourcing isn’t hard to achieve. The key? Selecting the right partner at the outset and ignoring ‘too good to be true’ pricing that, with just a bit of analysis, can’t possibly add up for remote workers.
Why outsourcing ethics should matter for your business.
Does reputation drive your new business?
- Over 80% of B2B sales are traced back to some form of recommendation or referral (Edelman Trust Barometer, Forbes).
- Buyers hate risky bets. Most seek recommendations…referrers won’t refer if they feel uncomfortable about an outsourcers’ ethics.
- Buyers don’t want to select a supplier that might look bad for them…and their employer.
While super-low-cost outsourcing deals may initially make CFOs smile, the same CFOs may be less happy if it transpires that a cheap deal leads to lower referral levels.
Does it matter to you that your local team is happy with company policies, including the decision to engage dedicated talent in the Philippines? We presume so.
Selecting a super-low-cost talent provider means low wages, benefits, and likely sub-optimal working conditions for overseas teams. Your local team may feel uncomfortable working alongside remote team members with poor office spaces, poor IT, low wages. We’ve heard stories of how this plays out for both sides. As one business told us ‘Despite paying premium service fees, the actual workers were receiving a fraction of that amount, with no benefits, no fair treatment, and certainly no ethical safeguards.’
‘I met with other outsourcers and was not comfortable with the way they treat their staff. Michelle knows everyone by name and her staff warmly greet her. Yempo treats people well so there is a ‘fit’ with our business.’ – David D, Yempo Solutions client.
Outsourcing ethical checklist.
How can you save money by outsourcing, gain the talent you need, AND ensure remote employees are treated ethically?
- Choose a country with strong labour protection legislation.
The Philippines has one of the strongest outsourcing sectors and employment codes. Saving money by engaging Philippines talent need not come at a cost to Filipinos (find out more by reading Michelle’s blog on Modern Slavery).
- Choose an outsourcing partner that’s registered as a ‘Local Employer of Record’ (or country equivalent).
- You want cost savings.
- You want quality talent.
- You want to protect your business from non-compliance with legislation.
By engaging offshore talent in the Philippines via a Local Employer of Record, business leaders know that their remote team members are protected by HR legislation. Their own business is also protected by unforeseen consequences such as adoption of local employment rights by remote workers. It happens.
- Review your company’s employment policies so you know what matters to your business.
Pay.
Benefits.
Healthcare.
Sick pay.
Holidays.
HR policies.
This captures a ‘shopping list’ for outsourcing partners to create an ‘equivalent’ package for your new remote team members. Differences in cost of living make it possible to provide matched packages and save up to 70% on overall employment costs.
- Complete due diligence.
Ask for and take references. Ask to meet and interview team members. Ask for proof that employees receive the pay, benefits, and conditions that you pay for.
- Look for evidence of community engagement.
If we work for a firm that pays us badly, offers poor benefits and no personal development then we’re highly unlikely to want to engage outside of working hours…or be provided with social enrichment opportunities.
If we work for a firm that pays fairly, provides decent benefits and personal development…we’re far more likely to engage outside of working hours…and the employer is far more likely to provide social opportunities.
Check out our employee site https://www.yempo.ph/
Get started with outsourcing to the Philippines
Book a quick chat with Michelle today, to know more about our best practices in providing offshore accounting and IT staff from the Philippines – or shoot us an email at [email protected]. We are happy to answer your questions!
Learn more:
Read more helpful information about outsourcing from Australia or the UK to the Philippines:
5 Huge Financial Advantages of Outsourcing Australian Accountancy Functions
5 Huge Financial Advantages of Outsourcing Australian IT Development Functions
Top 8 industry sectors that most frequently outsource to the Philippines
Outsourcing to the Philippines: Ensuring Fair Pay, Benefits, and Conditions
Fair Work and Offshore Hiring: Philippines Compliance