Hybrid work arrangement, which is now the most preferred post pandemic work model in the IT-business process management (IT-BPM) industry, is needed to maintain the competitiveness of the Philippines, according to the IT-Business Process Association of the Philippines (IBPAP).

In a presentation during the virtual forum “Invest in Iloilo City: Shaping the Future of Work for Iloilo”, IBPAP President and Managing Director Jack Madrid cited the benefits to the country, industry, employees and employers of the hybrid work model based on data gathered by the association.

“Among these benefits are the need to maintain the competitiveness of the Philippines in terms of cost and operational flexibility,” he pointed out.

Madrid also cited the Philippines demographic advantage in terms of its young population compared to North America and Europe. “We need to seize that demographic advantage so that we can provide more jobs by upskilling and rescaling our talent so that more and more investors will choose the Philippines over our competing IT-BPM regions,” stressed Madrid.

Based on the IBPAP Industry Survey in Jan.-Feb. this year, 91 percent of Filipino employees prefer a hybrid work model rather than full-time office work. For IBPAP, 60 percent prefer hybrid, 30 percent full-time remote, and 10 percent on site for the next 6 to 12 months.

The preference for hybrid was further heightened in its latest survey in March where a higher 88 percent of IT-BPM workers prefer hybrid work model as against 60 percent in the Jan-Feb survey.

The March survey also showed that of IT-BPM employees said they are more efficient and productive under the hybrid work model.

Notably, the survey also highlighted that 62 percent said that the type of hybrid workplace model arrangement will affect their decision to stay in the IT-BPM industry while only 38 percent said the type of work model will not affect their decision to pursue a career in the industry or not.

Madrid further pointed out that even during the pandemic when most of their work were done in the safety of their workers’ homes, the local ITBPM was able to sustain and even improve the productivity of their workforce.

“We did not see any drop in productivity or customer satisfaction when we migrated over one million employees from on site to home,” he pointed out. In fact, he added, “This has put the Philippines again on the map because the world watched how fast we did that migration of personnel and equipment during the pandemic.”

The other advantage the survey revealed is the significant reduction of absenteeism in an industry that his battling with the issue of attrition. Madrid the issue of high attrition in the industry is being addressed by allowing flexibility as part of the future of work.

Madrid, however, said that the WFH and hybrid is still evolving depending on what model suits best with the company.

While majority now prefer WFH, Madrid said, “This is not a one size fits all situation,” rather the work model will depend on the industry or the client investor.

This means, there will be different degrees of expectation into what will be the precise hybrid model or the optimal balance. “This balance will have to evolve over time. We will be getting there but the message is very clear, over 90 percent of people expect and prefer to work in a hybrid environment and that is the message,” he emphasized.

At present, there has been an exchange of arguments between the Department of Finance (DOF) and the Philippine Economic Zone Authority (PEZA) on the implementation of WFH and hybrid work model.

The DOF stood pat on their decision that IT-BPMs and registered business enterprises with the investment promotion agencies of the government must return to their approved ecozone location after the 90 percent work-from-home (WFH) privilege extended to them during the pandemic already expired on March 30 this year. If they will not return to their ecozones, DOF said these firms will lose their tax incentives.

PEZA, however, also maintained that they had been allowing WFH arrangement even during the pandemic. They invoked their own policies to allow 30 percent WFH and 70 percent onsite, as well as the Telecommuting Act, which allows workers to perform their work remotely.

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