Sourcing talent in a tight employment market

The Philippines recently overtook New Zealand as the largest source of employees for our Global Teams clients. Here we’ll take a look at the current trends in our clients’ remote hiring, why the Philippines has become the largest source of employees and why it is accelerating.?

When we first offered our Global Teams remote employment service back in 2020, there was a clear trend amongst our clients’ employee movements. New Zealand was the early standout, with two main drivers:

• Kiwi expatriates working in Australia were taking the opportunity to work remotely
• New Zealand offered great candidates in a tight labour market?

However, over the last two years, the growth of New Zealand candidates has slowed. This change is not surprising given the unemployment rate has fallen to a low level of just 3.4%. With Australia sitting at 3.5% and Singapore at 1.8%, more and more companies are seeking out new regions to fill roles they simply can’t find in their local markets.?

This has seen the Philippines overtake New Zealand as the largest source of remote employees through Global Teams. We’ve spent significant time working with clients who are building Philippines-based teams and seen first-hand the key benefits they’re experiencing.

High-quality work

Filipinos are highly educated and skilled, and our clients see high-quality work from their Filipino teams.

Time zone compatibility

The Philippines is in the same time zone as Perth, which is only 2 hours behind Australian Eastern Standard Time (AEST). As such, using communication tools such as video calls and messaging apps makes managing remote workers in the Philippines simple. In addition, we’ve heard that many Filipinos are happy to start and finish their day early, especially as they eliminate major commute times when working remotely.

Language proficiency

Filipinos are highly proficient in English, making it easier for them to adapt to your business and ways of working.

A diverse team brings increased productivity and innovation

Remote work has been shown to increase productivity through improved flexibility and more loyal employees. This allows you to invest in the development of your team with confidence and work towards your goals. Plus, diversifying your team brings diversity of ideas, which has been shown to improve innovation and make your business more adaptable and responsive.

Access to a large talent pool?

There are over 100 million people in the Philippines, which is 4x the population of Australia and 20x the population of New Zealand. Filling roles that are difficult to find in your local market from a large pool of highly skilled and talented workers in the Philippines, reduces the opportunity costs of vacancies and ensures you get the best person for the role. Employ on merit, not location.

In light of these experiences, it's not surprising that we’re seeing rapidly growing demand for employees from the Philippines amongst clients based in Australia, New Zealand and Singapore. And as long as those labour markets remain tight, we expect this demand to continue to grow.?

Building a remote team is about finding the best person for the job, and that goes both ways. Working for businesses located abroad is highly regarded by Filipino workers, which tends to lead to high retention rates and strong ambitions to grow within their roles. The resulting long-term partnerships are of great benefit to businesses. In return, we see our clients reward those employees with strong EVPs and remuneration packages, leading to even more tenacious teams.?

If you’ve been thinking about hiring remotely and would like more information or have any questions, our Global Teams experts are always here to help. Or you can also check out our country pages, including this one, packed with insights about hiring in the Philippines.?