What Should You Know Before You Hire Filipino Employees for the First Time?

What Should You Know Before You Hire Filipino Employees for the First Time?

Back in early 2024, a post by entrepreneur Nick Huber on X (formerly Twitter) stirred things up. He put it pretty directly: “There are people in the Philippines and LatAm who can do your job better than you can for $5 an hour… and work 60 hours a week, no complaints.”

During his workday in Austin, Texas, his message wasn’t just about American work habits – it highlighted a significant shift happening in the global workforce.

The post got people talking again about outsourcing and virtual assistant hiring, particularly in strong regions like the Philippines. The Philippines has a well-established remote work environment and a booming BPO industry. With over 1.3 million professionals working in this sector, it’s become known as a top spot for companies looking to outsource.

So, for UK and US companies planning to hire Filipino employees for the first time, this guide offers some practical advice. While the cost savings are attractive, building a successful long-term relationship means understanding the local culture, knowing Philippine labor laws, and offering fair compensation. 

With the right approach – and the right support – it’s possible to build a highly effective offshore team that brings real value to the table.

The Value of Hiring Remote Filipino Employees

Professionals from the Philippines have built a worldwide reputation for being dependable, professional, and excellent communicators, particularly when working remotely.

A significant factor driving businesses to hire Filipino employees is their cultural alignment with teams in the West. Companies based in the UK or the US often find that Filipino remote workers readily adapt to Western work cultures, especially in team-based environments that emphasize structure, accountability, and clear communication.

However, achieving lasting success involves more than just hiring; it necessitates cultural sensitivity, adherence to legal requirements, and a dedication to providing fair and competitive pay. 

Cultural Awareness: Key Considerations

cultural awareness when you hire filipino employees

Building strong and respectful teams requires a solid grasp of Filipino workplace culture. While Filipino employees are generally known for their warmth, dedication, and enthusiasm, successful cross-cultural communication hinges on understanding specific nuances.

1. Indirect communication

Filipino professionals often navigate conversations with a preference for indirectness, deeply rooted in cultural values such as hiya (a sense of social propriety or shame) and pakikisama (maintaining smooth interpersonal relationships).

Saying a direct “no” or openly disagreeing can be uncommon, even when clarification is needed. To foster clear understanding:

  • Frame feedback in a constructive and positive manner.
  • Prompt deeper understanding by asking open-ended questions.
  • Solidify important instructions with written summaries.

2. Respect for hierarchy

It’s common to see a strong sense of respect for authority within Filipino workplaces. Team members who are newer or in more junior roles might think twice before questioning decisions made by those in leadership or offering critical feedback. 

For employers, keeping this in mind is key. Strategies that can help include:

  • Establishing clear and open lines of communication for everyone.
  • Making it explicitly known that feedback, from any level, is not only welcome but truly valued.
  • Actively working to build a sense of psychological safety during team meetings and when reviewing performance.

3. Importance of relationship-building

In the Philippines, trust is the foundation for good teamwork. Small, thoughtful actions can go a long way in building strong relationships.

Things like informal check-ins just to see how people are doing, celebrating when the team achieves something together, and recognizing the efforts of individuals can make a big difference in team morale and how loyal people feel to the team.

Recognizing the importance of cultural integration for international clients, All In Outsourcing offers onboarding support that includes practical guidance on understanding Filipino workplace culture. This proactive approach empowers clients to forge strong, collaborative relationships right from the start, thereby mitigating potential misunderstandings that could negatively impact productivity or team morale.

Legal Compliance: Philippine Labor Laws You Should Know

Navigating Philippine labor laws is a must for businesses looking to bring on Filipino talent, particularly when hiring directly instead of through a third party. Here’s a breakdown of some essential points to be aware of:

Employment structures

There are several ways to engage Filipino workers:

  • Freelancers (who have limited protection under Philippine law).
  • Direct hires (which necessitates registration with government bodies such as DOLE, BIR, and SSS).
  • Via outsourcing providers (who take on the responsibility of all compliance matters).

Benefits under Philippine law

For direct hires, employers are obligated to provide the following:

  • 13th month pay: Equivalent to one month’s salary, to be paid in December.
  • Service incentive leave: A minimum of 5 paid days off granted after 1 year of service.
  • Contributions to PhilHealth, SSS, and Pag-IBIG.
  • Night shift differential: An additional 10% premium for any work performed between 10 PM and 6 AM.

While these regulations are in place to protect employees, managing them internally can become intricate.

Offering Competitive Compensation & Benefits

Attracting and keeping top Filipino remote workers means thinking beyond just the bottom line. While it’s true that salary expectations in the Philippines differ from places like the UK or the US, offering fair and competitive compensation is paramount for building a strong and loyal team. Focusing solely on cost savings can backfire if it means undervaluing your employees.

Consider these example monthly salary ranges:

Offering competitive compensation & benefits when you hire Filipino employees

These figures represent a solid baseline for skilled professionals in the Philippines. Keep in mind that actual salaries can shift based on individual experience, the specific industry, and the scope of work. 

For most organizations tapping into this global talent pool, the sweet spot lies in finding a balance: achieving real cost savings while still offering compelling value to their remote team.

What makes a competitive package?

When planning to hire, Filipino employees’ salary expectations should be considered part of a well-rounded and competitive compensation package – but it involves more than just a base salary. Here are key elements that often make a real difference to employees:

  • Timely, accurate pay: Ensuring everyone is paid correctly and on schedule.
  • 13th-month pay or holiday bonuses: These additional payments can provide significant financial support.
  • Performance incentives or raises: Recognizing and rewarding strong performance through bonuses or salary increases.
  • Optional health benefits or wellness perks: Offering choices in healthcare or supporting well-being demonstrates care for employee health.
  • Training and development opportunities: Investing in employee growth through learning programs shows a commitment to their future.

Consider All In Outsourcing – this company prioritizes fair compensation by using local market data as a benchmark and guarantees on-time payments for all staff. 

Moreover, they empower clients to enhance their offshore teams’ packages by offering performance-based bonuses or opportunities for professional development, ultimately contributing to better employee retention and higher-quality work.

Outsourcing Filipino Employees in 2025

A viral X post in 2024 sparked a global debate with a simple question: Can talent sourced offshore truly outperform local hires? 

Huber’s observation highlighted the capabilities of professionals in nations such as the Philippines and Latin America, suggesting they often demonstrate greater consistency, offer significant cost advantages, and are increasingly adept with artificial intelligence.

While potentially contentious, this viewpoint resonated with numerous business owners, and available data lends credence to the idea of exploring international talent pools.

From Cost-Cutting to Strategic Growth

Outsourcing has shifted its image. It’s no longer just about cutting costs; in 2025, smart businesses, particularly smaller and newer ones in the UK and US, are using it as a real strategy for growth.  Bringing on remote team members from the Philippines, for example, allows these companies to:

  • Access to skilled talent: Tap into a pool of talented individuals without the usual expenses and complexities involved in building a local workforce.
  • Faster operations: Expand their operations more quickly by leveraging a workforce that’s already comfortable and proficient with remote work setups.
  • Avoid HR headaches: Sidestep many HR-related challenges, as outsourcing providers typically manage the legalities, payroll processes, and compliance issues.
  • Stay competitive: Maintain a competitive edge, particularly when local hiring budgets are stretched thin or constrained by the economic climate.

AI + Human Talent = Future-Ready Teams

The fusion of artificial intelligence with human capabilities is shaping the workforce of tomorrow, and Filipino professionals are at the forefront of this evolution. 

It’s common to see individuals here actively using tools like ChatGPT, Grammarly, Canva, Notion, and Zapier. These technologies empower them to automate routine tasks, elevate the quality of their work, and optimize their daily processes. 

The familiarity with cutting-edge tools makes Filipino talent particularly appealing to startups and small to medium-sized enterprises (SMEs) seeking remote team members who are not only tech-savvy but also capable of managing themselves effectively.

The way we work globally is changing, and talented Filipino professionals are leading the charge. Looking ahead to 2026 and beyond, thinking about outsourcing as just a way to cut costs misses the bigger picture. It’s more about strategically building adaptable, highly skilled teams that are ready for whatever the future holds.

In Closing

Bringing Filipino talent on board can boost a small or growing business. However, simply finding great people is only part of the equation. Achieving success means paying attention to important aspects like their communication styles, understanding Philippine labor regulations, and ensuring fair and competitive compensation.

Engaging an experienced outsourcing partner can take away much of the uncertainty and help establish a remote team that operates smoothly and effectively right from the start.

For businesses that plan to hire Filipino employees while wanting to avoid potential pitfalls and administrative burdens, working with us at All In Outsourcing can provide the necessary groundwork for confident growth. We can’t wait to talk with you, so contact us today!

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