The Philippines may well emerge as the top market for the global workforce in 2023, as companies around the world embrace remote/hybrid setups with preference Filipino talent, even as salary rates are rising in cadence with soaring inflation, according to a survey.
The latest Robert Walters Global Salary Survey 2023, an authoritative analysis and benchmark on salary trends worldwide, including insights about recruitment, showed the Philippines is expected to be a resource hub not only for traditional Multi-National Companies but for start-ups as well.
The overall impact would be an elevated jump in employment opportunities in 2023, with employers forced to grant more competitive salaries to attract and retain talent, according to the survey.
Robert Walters, which is also a recruitment firm, also said that foreign organizations have further ramped up their shared services centers in the Philippines, with many looking to supplement their workforce with talent in the Philippines.
“Possessing an English-speaking population with a knack for customer service, the Philippines has become a hotspot for companies looking to hire, the survey added.
Employers are also keen on Filipino talent with an integrated mindset and skillsets, specifically those who are equipped with strong leadership, technical, and organizational skills.
“As more and more startups — especially those that specialize in technology, finance, and digital services — enter the market this year, we expect the Philippines to strengthen its position in the global workforce market by the end of 2023,” said Alejandro Perez-Higuero, Director of Robert Walters Philippines.
With more companies moving their operations into the country, Robert Walters believes the Philippines is likely to become a candidate-driven market this year. Its survey reflects that not only are 81 percent of Filipino talent optimistic about new job opportunities available in their sectors, but 56 percent of professionals are also looking to change jobs in 2023.
Meantime, the survey also noted that amid the increase in the cost of living and a possible recession in the near future, employees’ salaries are expected to climb by 4 percent in 2023.
Professionals in the Philippines could expect higher salary increases when moving between jobs, hitting a high of 50 percent pay rise for talent with niche skills.
Inflation plays a key role in employees’ considerations for salary increases this year. More than a third (35%) said they are likely to seek a new role if their employers fail to increase their salaries above inflation, while 22 percent said they are very likely to switch companies, and another 20 percent are already certain of leaving their employers.
With attractive salary packages, the survey noted that retention of employees is the biggest challenge in 2023.
Increased confidence and adaptability to the pandemic have resulted in employers struggling to retain their employees, as the latter find new ways to navigate the modern world.
While 2022 was a year of recruitment for many employers, 44 percent of surveyed companies are concerned about facing retention in 2023 as the salary expectations of professionals rise and shortage of top talent. The survey revealed that 78 percent of companies have pro-actively put in place retention measures. Most common-adopted measures include increased wellbeing initiatives (75%), hybrid work policies (71%) and improved employee benefits (64%).
On the flip side, employees signal that besides excellent compensations (74%), 47 percent of them value flexible work arrangements, followed by an inspiring work culture (42%).
With the 2023 market driven mostly by prospective employees, companies are encouraged to focus on employer branding as the most effective recruitment strategy.
“Nowadays, especially given that the workforce is slowly being populated by millennials and Gen Z, work-life balance is non-negotiable. There is a whole community out there where they can check a company’s background and culture before they decide to be recruited,” said Perez-Higuero.