Ensuring remote employees receive fair pay, benefits and conditions
A common concern among businesses considering outsourcing to the Philippines is that the practice might exploit the economic situation of Filipino workers. Business leaders worry that the significant cost savings gained by adding remote employees to their teams might result in accusations of modern slavery.
In this blog, we compare the cost of living in the Philippines versus Australia, the UK, the USA. Our aim is to demonstrate how it’s possible to provide comparable pay and working conditions for your local and remote teams in the Philippines.
A simple cost of living comparison does not in itself protect workers from abusive employment practices. Every country has good and bad employers. It’s important to dig a little deeper to ensure that your values match those of any outsourcer that you are considering asking to supply talent. Leaders of ethical businesses want to be sure that all people who work for their organisations are treated equitably.
“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, Managing Director, FiveP
Cost of living Comparison Statistics – UK versus Philippines.
Typically, Yempo’s clients save around 70% on their salary costs by outsourcing IT services or outsourcing accounting services with us vs. engaging local employees. Curiously, the cost-of-living differential between the UK and the Philippines is exactly this percentage. Cost savings that Yempo enables for clients aren’t generated at the expense of Philippines-based workers.
There are higher education and English-speaking differentials between the two nations, but these gaps are rapidly closing. Demand from Western companies for highly educated, English-speaking Filipino talent continues to fuel an education explosion.
“We carried out seven interviews and were able to hire five people. They are some of the most amazing staff we’ve got.” – Aran F, CTO, Prezzee
Cost of living comparison – Australia versus Philippines.
The gulf between living costs in Australia and the Philippines is wide and getting wider. Demand for local Australian IT and accounting talent continues to outstrip supply, driving salaries higher.
Australian business leaders need have no fear about engaging a values-based IT outsourcing company in the Philippines, like Yempo. It’s a well-proven way to successfully fill hard-to-recruit roles. The relative purchasing power of the dollar in the Philippines versus Australia means that Filipino team members can enjoy similar employment terms to Australia-based teams. The same goes for outsourcing accounting services to the Philippines.
‘’We value the connection with Michelle. It’s nice that she’s a Philippines- based Australian and willing to get involved. This is especially valuable to smaller, growing, clients, like We Are Lumen.’’ – Jacki McAvenna, Founder, We Are Lumen
Cost of living comparison – US versus Philippines.
The US has significant IT and accounting talent shortfalls. The Philippines has an abundance of professional talent with these skills.
The cost-of-living differential between the US and the Philippines is around 75%. If you’re a US business leader, then you can confidently outsource accounting knowing that your remote employees in the Philippines are fairly paid. Offshore IT teams can confidently, happily, tackle your IT tasks while saving your business money.
“If you want an offshore team then Yempo will help you to hire, find great candidates, run all HR, and provide easy systems – all in a friendly manner. With Yempo, everything is under control.” – Shareef H, Regional Engineering Manager, Aluma
Summary
Companies that hang on to old ideas that outsourcing to the Philippines is somehow akin to modern slavery have failed to understand how much lower the cost of living can be in the Philippines versus in their home countries. Business leaders that chose to add remote employees to their teams are providing valuable employement to highly qualified Filippino professionals.
Michelle, our Philippines-based Aussie CEO, will be very happy to share how we ensure that your remote IT and accounting teams benefit from fair pay, benefits, and working conditions.
Thank you for visiting our blog! We hope you found our content informative and engaging. Stay connected with us for more insightful blogs, updates, and tips on outsourcing IT & outsourcing finance in the Philippines, or shoot us an email at [email protected]. We are happy to answer your questions!
Learn more: Download our Step-by-step Finance Outsourcing Guide