Companies across the globe have increasingly turned to the Philippines to expand their business for customer support. This article aims to shed light on the reasons behind this trend and explore how Employer of Record (EOR) services can pave the way for companies to penetrate the Philippine market.
1.The Philippines’ Thriving Outsourcing Industry
The Philippines has emerged as a global leader in the outsourcing industry, particularly for customer support services. The country boasts a highly skilled and English-proficient workforce, making it an attractive destination for companies seeking to outsource their customer support operations.
One of the primary reasons why companies choose the Philippines is the cost-effectiveness it offers. The labor costs in the country are significantly lower compared to other countries, allowing businesses to save on operational expenses without compromising quality. This cost advantage is particularly beneficial for companies with large customer support teams.
3. Cultural Alignment
Filipinos are known for their strong customer service orientation and cultural affinity to Western markets, particularly the United States. Filipino customer support representatives are quick to adapt to different customer needs, possess excellent communication skills, and have a customer-centric mindset. This cultural alignment helps companies provide seamless customer experiences and build strong relationships with their customers.
4. English Proficiency
English is one of the official languages in the Philippines, and it is widely spoken and understood by the majority of the population. This high level of English proficiency enables Filipino customer support agents to effectively communicate with customers from English-speaking countries, eliminating language barriers and ensuring smooth interactions.
6. Talent Pool Availability
The Philippines boasts a large pool of talented individuals, thanks to its strong education system and continuous emphasis on skills development. Many Filipinos pursue careers in customer support due to the abundance of job opportunities, resulting in a highly skilled workforce that can cater to diverse customer needs and deliver outstanding service quality.
The Role of Employer of Record (EOR) Services
Now, let’s delve into the role of Employer of Record (EOR) services in helping companies penetrate the Philippine market:
1. Compliance with Local Labor Laws
Expanding to a new market often involves navigating complex labor laws and regulations. EOR services can assist companies in fulfilling the legal requirements associated with hiring employees in the Philippines. They ensure compliance with employment laws, handle payroll management, and take care of tax obligations, allowing companies to focus on their core business operations.
2. Streamlined Recruitment and Onboarding
EOR services have extensive networks and expertise in the local job market. They can assist companies in recruiting and onboarding Filipino talent efficiently. EOR providers help source qualified candidates, conduct interviews, and handle the necessary paperwork, enabling companies to build high-performing customer support teams quickly.
3. HR and Administrative Support
Managing HR functions, such as employee benefits, performance evaluations, and disciplinary actions, can be challenging for companies expanding into a new market. EOR services offer comprehensive HR support, ensuring smooth employee management and compliance with local regulations.
4. Mitigating Employment Risks
Entering a new market involves certain risks and uncertainties, especially in the context of employment. EOR services act as a buffer, shouldering the risk associated with employee management, labor disputes, or unexpected terminations. Their expertise in local labor laws helps companies mitigate potential risks and navigate any legal challenges that may arise.
In conclusion, companies choose the Philippines as a destination for customer support expansion due to factors such as the thriving outsourcing industry, cost-effectiveness, cultural alignment, English proficiency, robust infrastructure, and the availability of a talented workforce. Leveraging Employer of Record (EOR) services further enables companies to penetrate the Philippine market by ensuring compliance with labor laws, streamlining recruitment and onboarding, providing HR and administrative support, and mitigating employment risks.
Olivia Yu has decades of experience in the Human Resources industry. She’s the Regional Director for Asia Pacific of a famous international HR company. Olivia’s international experience inspires her to write articles about human resources and global staffing.