Filipino Traits & Values (2023 Update)
Outsourcing to the Philippines has become a popular trend over the past few decades, particularly in the business process outsourcing (BPO) sector.
The country has emerged as the largest and leading contact center outsourcing destination in the world. According to the Phil Star, the BPO sector in the Philippines employed more than 1.3 million people in 2022.
One of the significant benefits of outsourcing to the Philippines is the substantial cost savings.
The cost of labor in the Philippines is lower compared to many other countries, and outsourcing can save companies 40-50% compared to premium onshore programs. By outsourcing to the Philippines, companies can afford to double their production and save on other resources, which also assures better quality of services as BPO and KPO firms in the country invest greatly in training their people.
The average hourly rate for outsourcing in the Philippines is $4-14 per hour, making it a low-cost outsourcing destination. The Philippines is quickly adapting to the changing business environment, as seen in its BPO sector, and is exploring the future of outsourcing in an age of automation and artificial intelligence.
The reasons to outsource a company’s processes to BPO companies in the Philippines are numerous, and these include the high linguistic and cultural compatibility between Filipinos and their clients.
This factor not only affects the quality of service provided by the workforce. It also plays an important role in how office dynamics work, all the more post pandemic as filipinos increasingly start to work from home.
To conduct a harmonious and effective working relationship, both parties should take the extra mile in familiarizing themselves with the culture and values of the people they are working with.
To understand the Filipino talent and the BPO industry in the Philippines, one has to take a look at the country’s history and understand Filipino culture and traditional values.
Defining the Filipino value system
The Filipino value system refers to the set of values that are important to the majority of Filipinos, including a unique combination of consistent ideologies, moral code, ethical principles, etiquette, cultural and personal values, and others. It is also a cultural definition that encompasses the values that Filipinos have historically held as important in their lives. The Filipino values are undergoing changes along with the digital revolution, for example, the concept of Hiya, which refers to modesty and avoidance of shame, is evolving to include a sense of propriety. The set of values promoted by Filipino society is based on pagkakabuklod-buklod, which refers to the unity of the values.
Top 5 Most Important Filipino Values
The Philippines is a country with rich cultural heritage and strong values that are deeply ingrained in its society. Based on web search results, the following are the top five most important Filipino values that have shaped the nation’s character and defined its people.
Family Orientation: Family is at the core of the Filipino values system, and caring for one’s family is a significant value. Filipinos are known for being very family oriented, and the importance of family ties and relationships is evident in all aspects of life. From extended families living together to supporting each other through thick and thin, family is a source of strength and comfort for Filipinos.
Hospitality: Hospitality is a hallmark of Filipino culture, and the country’s people are known for their generosity and warm welcome. Bayanihan, a concept of community spirit and cooperation, is often demonstrated through acts of hospitality, such as hosting guests and lending a helping hand to neighbors.
Hard Work and Industriousness: Hard work and determination are highly valued in the Philippines, and Filipinos are known for their industriousness and resilience. This value is instilled in Filipinos from a young age, and is seen as a path to success and prosperity.
Compassion for Others: Filipinos value compassion for others, and this value is expressed through the concept of Awa. This value encourages Filipinos to be caring and empathetic towards others, especially those in need. It is a reminder to always put others before oneself and to act selflessly.
Being Helpful to Others: This value is one of the main beliefs of Filipinos, and it is taught to children from a young age. Pagiging Matulungin sa Kapwa, or being helpful to others, is a fundamental aspect of Filipino culture and is demonstrated through acts of kindness and generosity. This value encourages Filipinos to help those in need and to always strive to make a positive impact in the lives of others.
In conclusion, these five values are a testament to the rich cultural heritage of the Philippines and the strong moral foundation of its people. They shape the nation’s character and define its people, and they continue to play a significant role in shaping the future of the country.
History of the Philippines
The Philippines is a Southeast Asian nation with a rich and complex history, dating back to the arrival of Ferdinand Magellan in 1521. Over the centuries, the Philippines has undergone a number of significant changes and developments, facing a range of challenges and triumphs along the way.
After Magellan’s arrival, the Philippines was colonized by the Spanish, who ruled the islands for over three centuries. During this time, the Spanish established a significant cultural and religious influence over the Philippines, which can still be seen in the country today. However, in 1898, following the Spanish-American War, the Philippines were ceded to the United States and became a U.S. territory.
In 1935, the Philippine Commonwealth was established as a 10-year interim step prior to full independence. This period of semi-autonomy was short-lived, as the Philippines were occupied by Japan during World War II in 1942. After the war, the U.S. military overpowered the Japanese, and the Treaty of Manila in 1946 established the independent Philippine Republic.
Despite its independence, the Philippines has continued to face challenges over the years. One of the most significant events in the country’s history was the Battle of Leyte Gulf in 1944, which was part of the invasion of the Philippines during World War II. This battle saw some of the largest naval engagements in history and marked a turning point in the war in the Pacific.
More recently, in 2023, the Philippines experienced a major disruption when its airspace was closed for nearly six hours due to a power outage in its air traffic management center. This outage affected its communication systems, disrupting over 280 commercial flights and leaving 56,000 passengers stranded. This event sparked widespread criticism of the government and raised questions about the country’s readiness to handle such crises.
Overall, the history of the Philippines is marked by significant events and challenges, from its discovery by Ferdinand Magellan in 1521 to its independence from the United States in 1946, and recent developments such as the 2023 airspace closure. Despite these challenges, the Philippines remains a vibrant and diverse nation, rich in culture and history.
Languages Spoken In The Philippines
In the Philippines, language is a rich and diverse part of the country’s heritage. According to recent research, there are 186 different languages listed for the Philippines, with 182 of them being living and 4 being extinct. Out of the living languages, 41 are considered institutional, 72 are developing, 46 are vigorous, 13 are in trouble, and 10 are dying.
Despite this linguistic diversity, the national language of the Philippines is Filipino, a standardized form of Tagalog. Along with English, it is an official language and widely used in formal education and government offices. Additionally, the country has its own official sign language, Filipino Sign Language.
However, not everyone agrees on the exact number of languages spoken in the Philippines. Estimates range from 120 to 187, depending on the method of classification. The majority of these languages are Malayo-Polynesian and native to the archipelago. There are also creole varieties influenced by Spanish, known as Chavacano, as well as local varieties of Chinese spoken in specific communities.
Filipino is widely spoken in commercialized cities, public and private schools, and government offices. This dominant language has been influenced by many different languages including Arabic, Spanish, Sanskrit, Japanese, Tamil, and Hokkien. These influences are evident in the presence of loan words.
Overall, language in the Philippines is a complex and constantly evolving aspect of the country’s history and culture. Despite its diversity, the widespread use of Filipino and English has ensured a level of unity in communication.
The Philippines has become a hub for outsourcing, with English playing a significant role in this growth. As English is one of the official languages of the country, along with Filipino, the majority of the population is fluent in the language. This makes it easier for them to communicate with clients from other countries, especially those from the United States and the United Kingdom, which are the largest markets for outsourcing.
The Philippines has a well-educated, English-speaking workforce that has been trained to meet the demands of the global market. They are able to provide a wide range of services, from customer support to software development, at a fraction of the cost of similar services in the developed world. This has made the Philippines an attractive destination for outsourcing companies looking to save money while still maintaining high standards of quality.
Religion in the Philippines
As at 2023, the Philippines is a country with a rich and diverse religious heritage but the tectonic plates of religiosity are shifting.
Catholicism is the dominant religion in the Philippines, with an estimated 79.53% of the population belonging to this faith, This makes the Philippines one of the largest Catholic communities in Asia, with Catholicism having a significant impact on the culture and society of the country.
However, the Philippines is also home to a diverse range of other religious communities, including Protestantism, Buddhism, and Islam. Despite the presence of these different religions, the country is known for its religious tolerance and peaceful coexistence of different communities. The Philippines has a long history of religious harmony, and this continues to be a hallmark of the country’s social and cultural fabric today.
In addition to Catholicism, Protestantism is also a significant religion in the Philippines, with an estimated 10.8% of the population identifying as Protestant.
Buddhism is also an important religion in the country, with an estimated 2.1% of the population following this faith. Islam is also present in the Philippines, with an estimated 5.5% of the population identifying as Muslim.
Other minor religions in the Philippines include Hinduism, Judaism, the Bahai Faith, Indigenous Beliefs, Other Christians, and Atheists, with indigenous traditions predating the colonial religions of Islam and Christianity in the Philippines.
The role of religion in the Philippines is a complex and nuanced one, with different religious communities coexisting and influencing each other in a variety of ways. From its predominantly Catholic heritage to its diverse range of other religious communities, religion continues to play an important role in shaping the social, cultural, and political landscape of the Philippines.
Work Ethic In The Philippines
The Philippines has been known for its thriving outsourcing industry and reputation as the call center capital of the world. With a low cost of labor and a workforce that is both highly educated and proficient in the English language, the Philippines has emerged as a popular destination for outsourcing. The country is home to numerous business process outsourcing organizations that are renowned for their high-quality work and impressive business outcomes.
Despite its numerous advantages, the Philippines faces stiff competition from other outsourcing destinations such as India. India has been around for about 30 years, just like the Philippines, and has an outsourcing industry that is about three times larger. However, the Philippines has some notable advantages over India, such as higher salaries for call center agents. The average annual salary for call center agents in the Philippines is around $3,360 to $4,320, while in India, the average is $3,091.
Additionally, the Philippine economy is expected to grow by 6% in 2022, providing further evidence of its potential as a top outsourcing destination. Despite the challenges it faces, the Philippines remains a country with immense potential for growth and development in the outsourcing industry.
Why The Philippines Is Arguably The World’s Top Outsourcing Destination in 2023
The Philippines is one of the leading outsourcing destinations in the world in 2023, and for good reason. Outsourcing to the Philippines provides businesses with various advantages, such as cost efficiency, strong work ethics, good infrastructure, and a business-friendly environment.
Cost Efficiency:
One of the primary advantages of outsourcing to the Philippines is the cost-effectiveness it offers. Call center agents in the Philippines earn an average annual salary of $3,360 to $4,320, while agents in India receive $3,091 annually. This lower cost of labor is one of the reasons why the Philippines is such a popular outsourcing destination.
Strong Work Ethics of Filipinos:
Filipinos are known for their strong work ethic, which is why many businesses outsource to the Philippines. Filipinos are dedicated and highly motivated, which leads to high-quality work and excellent business outcomes for outsourcing organizations.
Good Infrastructure and Business-Friendly Environment:
The Philippines has a good infrastructure and a business-friendly environment, which makes it easy for businesses to operate and achieve their goals. The Philippine economy is expected to have a GDP growth of 6% in 2022, making it a great place for businesses to invest.
Conclusion:
The combination of cost efficiency, strong work ethics, good infrastructure, and a business-friendly environment makes the Philippines the top outsourcing destination in the world. These factors, along with the country’s highly educated and English-proficient workforce, have all contributed to making the Philippines a top choice for businesses looking to outsource their operations.
Top Management Tips For An Outsourced Filipino Team
Here are the top tips for managing an outsourced Filipino team in 2023, according to the provided web search results:
Provide project briefs that give the team a clear scope of work, dates, and deadlines. [2]
Effective communication and cooperation are crucial for managing an outsourced team. [3]
Retain 100% control of day-to-day activities by outsourcing highly skilled independent professionals from the Philippines. [1]
The Philippines has a strong business process outsourcing industry, accounting for 9% of its GDP. [5]
A lack of leadership can be an issue in a traditional work setting. Having a manager on the floor can help keep the team motivated and maintain high quality standards. [2]
If You Hire A Filipino Outsourced Team, How Do You Pay Them?
If you hire a Filipino outsourced team, you can pay them through a digital payment platform such as Wise. According to [3], most freelancers and businesses use digital payment platforms for sending and receiving payments. You can enter a US dollar amount, and the Filipino contractor will receive the money in Filipino pesos.
The salary of a Filipino virtual assistant can vary between $4 to $14 per hour, depending on their experience and the amount you are willing to pay, as per [2].
In an outsourced capacity, there are a few different ways to pay your Filipino employees. The most common way is to use a payroll service, which will withhold the appropriate taxes and send the money directly to your employees.
Another option is to use a third-party provider, such as a Philippine-based company, to handle your payroll. This can be a good option if you have a large number of employees, as it can save you time and money.
Finally, you can also choose to pay your employees yourself. This option can be more complicated, as you will need to withhold the appropriate taxes and send the money directly to your employees. However, it can also be more rewarding, as you will have more control over how your employees are paid.
Controversy in the Payments Space
The Philippines also keeps up when it comes to technology in payment solutions. This proves how far the country has gone when it comes to financial inclusion.
In a 2019 report by the Bangko Sentral ng Pilipinas (BSP), account ownership went up to 28.6%, good progress from 22.6% in 2017. Some of the unbanked citizens, meanwhile, place their money on mobile payment platforms.
With the rise of mobile payment and B2B platforms, transactions like receiving remittances, transferring allowances, and opening a savings account can now be done with a single click.
With this, Filipinos can spend more time with their loved ones and bond together with their friends. Businesses with a Filipino workforce don’t even have to worry anymore about excessive transfer fees when sending to different currencies.
But the Philippines’ leading digital payment platforms are actually owned by foreign companies. In the process, the country is losing millions of dollars.
Digital payment companies have been growing in the country, but a large chunk of the money goes to their foreign parents.
According to BusinessWorld, the Philippines is losing as much as $2 billion to foreign digital payment companies. This is due to the high service fees that these companies charge for every transaction.
With this, the country’s central bank, the Bangko Sentral ng Pilipinas (BSP), is looking to regulate these foreign companies.
Some common payment methods include:
- Wise
- Airwallex
- PayPal
- Payoneer
- Dragonpay
- GCash
- Maya
- 7-Eleven (owned by the Philippine Seven Corp)
Local banks and financial institutions are also urging the government to regulate these foreign digital payment companies.
It is also important to note that the Philippines is not the only country that is looking to do this.
China, for example, has been regulating digital payment companies for a long time. This is why Chinese tech giants like Alibaba and Tencent are not allowed to conduct financial transactions. The same goes for other foreign payment platforms.
This also gives Chinese locals more access to digital transactions.
The BSP is actually looking to regulate foreign payment companies to promote financial inclusion.
It’s also worth noting that the Philippines is one of the largest remittance countries in the world.
In 2018, the country’s remittance rate reached $33.8 billion, which is a 5.4% increase from 2017’s $31.86 billion.
In the same year, the Philippines ranked fifth in the world when it comes to remittances.
What are the main holidays in the Philippines, and do foreign companies need to observe them?
The Philippines has a long list of national holidays, and some provinces and cities have their own local holidays. Some of the main national holidays include Eid-al-Adha [2], the Holy week, and Bonifacio Day [4]. It is not specified whether foreign companies are required to observe these holidays. However, it is noted that Filipinos love celebrations and festivities, and they value optimism, humor, and positivity [5].
The Philippines: A Cultural Melting Pot and a Top Outsourcing Destination
The Philippines is a country with a rich history and culture that celebrates a number of holidays throughout the year. While Christmas, New Year, and Easter are the most important holidays in the country, there are also other holidays celebrated by Christians, Muslims, and other minority groups. Some holidays have fixed dates, while others are declared by the President of the Philippines.
The Significance of Holidays in the Philippines
For Filipinos, holidays are an opportunity to celebrate their cultural, religious, and national heritage. Businesses close down for the day, and employees take the time off to spend with their families. Employees who work on regular holidays receive 200% of their daily rate plus their daily cost of living allowance. Those who work on a special holiday receive 130%. Freelancers or independent contractors are not required to receive these benefits, but may request them.
The Importance of Holidays from a Business Standpoint
Foreign companies doing business in the Philippines are not required to observe all of the country’s holidays, but it is generally considered good business practice to do so. This is because many of the country’s holidays are based on religious traditions and respecting these traditions can go a long way towards building goodwill with potential customers and business partners.
Main Holidays in the Philippines
Christmas is the most important holiday in the Philippines and is celebrated by Christians and non-Christians alike. It is typically observed with a large feast, and many businesses close down for the day. New Year’s Eve is also a major holiday in the Philippines, celebrated with parties and fireworks.
Easter is another important holiday in the Philippines, celebrated by most Catholics with a week of fasting and prayer leading up to the holiday. Good Friday is a particularly important day during this time, and many businesses close down for the day.
There are a number of other holidays celebrated in the Philippines, including the Chinese New Year, which is celebrated by the country’s large Chinese community. Muslims also celebrate holidays such as Eid al-Fitr and Eid al-Adha.
List of Official Philippine Holidays in 2023
| Holiday | Date |
|---|---|
| New Year’s Day | January 1 |
| Maundy Thursday | (first Thursday of April) |
| Good Friday | (first Friday of April) |
| Araw ng Kagitingan (Day of Valor) | April 9 |
| Labor Day | May 1 |
| Independence Day | June 12 |
| National Heroes’ Day | August 30 or last Monday of August |
| Bonifacio Day | November 30 |
| Christmas Day | December 25 |
| Rizal Day | December 30 |
Conclusion
The Philippines is a country rich in history and culture, and its numerous holidays provide an opportunity to celebrate this heritage. Foreign companies doing business in the Philippines are not required to observe all of the country’s holidays, but doing so can help to build goodwill with potential customers and business partners. The Philippines is also a top outsourcing destination due to its low cost of labor, strong work ethics of Filipinos, good infrastructure, and business-friendly environment.
What do Filipinos get paid on average? What are their salaries & will I save money hiring them?
The average salary of Filipinos in the Philippines ranges from 11,300 PHP per month to 199,000 PHP per month, with a median salary of 48,200 PHP per month [2]. The average monthly salary in the Philippines was approximately 45,000 PHP in 2020 [3]. According to World Bank Data, the average annual income in the Philippines is $3,470 or $289 per month in 2015 [5].
For Filipino workers in the United States, the annual salaries range from $19,500 to $63,500, with most salaries ranging from $29,500 (25th percentile) to $40,500 (75th percentile).
Whether you will save money by hiring Filipinos in 2023 and beyond depends on various factors such as the cost of living in the country you are located in, the type of work they are hired for, and the current exchange rate between the Philippine peso and the currency you are using.
Summary
The average salary of Filipinos in the Philippines ranges from 11,300 PHP to 199,000 PHP per month with a median of 48,200 PHP. The average monthly salary in 2020 was approximately 45,000 PHP. The average annual income in the Philippines is $3,470 or $289 per month. Filipino workers in the US have annual salaries ranging from $19,500 to $63,500, with most salaries around $29,500 to $40,500. The cost of hiring Filipinos in 2023 and beyond depends on various factors like the cost of living, type of work, and exchange rate.
Enter BruntWork, the Remote Only Outsourcing Firm
We’re experts at building cost-effective efficient and scalable operational teams for businesses wanting to grow fast and effectively. Since 2010 we’ve recruited and trained hundreds of staff to work in The Philippines on behalf of our clients.
The company makes it easier for companies to outsource jobs to a distributed workforce who can perform tasks virtually, in any language, anywhere in the world.
In 2022, the company announced a substantial leap in quarterly revenue, with an increase of 181% year on year [4].
The company’s revenue growth and active agent growth are underpinned by its remote-only outsourcing model, which is preferred by its clients.
Why The Philippines?
Outsourcing to the Philippines has become increasingly popular in recent years, as businesses seek to take advantage of the country’s strong economic growth and low labor costs. The Philippines is now the world’s top destination for business process outsourcing (BPO), accounting for nearly one–fifth of the global BPO market.
How Big Is Outsourcing In The Philippines?
As of 2023, the global business process outsourcing (BPO) market is valued at USD 261.9 billion and is projected to grow at a Compound Annual Growth Rate (CAGR) of 9.4% from 2023 to 2030 [4]. The Philippines is a key player in the BPO industry with the primary verticals including software development, call centers, BPO, animation, and hardware components [5].
According to a Statista report, the BPO industry in the Philippines is projected to reach US$0.33tn in 2022, with a compound annual growth rate (CAGR) of 6.69%, leading to a market volume of US$0.45tn by 2027. Over 700,000 Filipinos were employed in the BPO sector in 2013 and the industry’s revenue rose to $15.5 billion, with 900,000 Filipinos employed full-time [3].
Remote Work Is The Future
Remote work is widely seen as a trend that will continue beyond the COVID-19 pandemic. The shift to remote work has accelerated during the pandemic and many companies are adopting hybrid virtual models that combine remote work with time in the office. According to a McKinsey survey, 38 percent of respondents expect their remote employees to work two or more days a week away from the office post-pandemic, compared to 22 percent of respondents surveyed before the pandemic [1]. Remote work is also expected to have long-lasting effects on the built environment and require companies to invest in digital infrastructure and free office space [3].
While remote work has had positive impacts such as increased productivity, many employees have reported feelings of anxiety and burnout [5]. The future of remote work will require companies to balance the needs of employees and the company, but remote work is here to stay and will continue to shape the future of work [4].
What are the opportunity areas?
The World Bank said that the BPO sector in the Philippines could benefit from providing value-added services and implementing institutional policies. In a report, World Bank wrote that the industry could have stronger prospects for revenue growth and job generation if it strengthens its analytics and artificial intelligence verticals. Ndiame Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand, said that countries that have leveraged their strengths in specific tasks and roles in manufacturing, services, and export at scale create more jobs and reduce poverty faster.
How big can I scale in the Philippines?
While BruntWork might be the leading “remote only” outsourcing firm globally, Concentrix was recognized as the biggest IT-BPO employer in the Philippines, with over 90,000 full-time employees (FTEs). So there is really no cap on how large you can grow, with the Philippines population in excess of 110 million. In a top-five IT-BPO employers list created by Colliers, Concentrix reportedly expanded and grew amid the pandemic, generating $1.34 billion in its Philippine operations.
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