More employers in the Philippines provide flexible working options for their workers, significantly higher than their peers in the region, according to a study.
Mercer’s Global Talent Trends (GTT) Study 2023, which includes a pulse survey conducted with close to 2,500 HR leaders globally, noted that nearly seven in 10 employees said last year that not being able to work remotely or hybrid permanently is a deal breaker when considering whether to join or stay with an organization. Mercer is the world’s leading professional services firm in the areas of risk, strategy and people.
In the Philippines, 74 percent of the companies surveyed
provide flexible working options for all their employees. This is significantly
higher than Asia (50%) and Global (56%) averages.
To combat the impact of inflation, 48 percent of companies
in the Philippines (versus Asia’s 26%) are using bonuses instead of base salary
to increase employee’s total compensation package, while 35 percent (versus
Asia’s 29%) are implementing adjustments across the entire workforce.
However, just 17 percent of employers in the Philippines
(versus Asia’s 22% and Global’s 29%) are providing a cost-of-living adjustment
or other wage increases for the most impacted markets, which may be a more
sustainable way of managing compensation for organizations in the longer term.
To attract and retain talent, the study said that organizations
need to differentiate themselves beyond having fair pay policies, and also
prioritize employee well-being, which encompasses physical, mental, social and
financial well-being. Almost all respondents (97%) are focusing on introducing
or improving benefits offerings that matter.
Compared with the Asia average, the study revealed that Philippines
generally fared better in supporting employees’ well-being.
For example, 65 percent of employers (versus Asia’s 40%)
have addressed the stigma of mental health through dedicated campaigns, and 53
percent of them (versus Asia’s 39%) have redesigned work with well-being in
mind such as having no-meeting days and balanced workloads. However, support
for special populations like gig or freelance workers trails Asia (37%), with
28% of employers providing adequate job security.
The study showed that the high attrition rate continues to
plague companies in the Philippines, and the significant supply and demand gap
in both supply and skills of workers has highlighted the critical role
organizations play in safeguarding the future employability of their workforce.
Again, the study revealed that employers in the Philippines
outperformed their Asian counterparts in learning and development programs as
they proactively nudge employees to undergo training (71% versus Asia average
of 60%) and have a clear understanding of overall talent development needs (63%
versus Asia average of 56%).
There is room for companies in the Philippines to further
review their talent mobility opportunities (27%) which are less common than the
Asia average (39%). Employers are also slower to adopt and leverage tools and
technology such as AI to understand skills needs (16%), with just 14 percent of
them having in place a robust assessment of technical skills.
Floriza Molon, Career Business Leader, Mercer Philippines,
said, “Our new shape of work, in the post-pandemic era, could bring about new
and unexpected challenges for many organizations in the Philippines.”
Molon noted that while many have pivoted successfully with
updated rewards and benefits offerings, employers need to remain agile and
flexible in order to adapt quickly to new conditions and fast-evolving employee
expectations.
“Leveraging and maximizing the multitude of tools and technology available for skills assessment, training and talent development will allow firms to refocus their efforts on improving the employee experience
by building an enabling company culture and designing effective total rewards
programs that are based on how their workforce can thrive,” she said.
Globally, nearly six in 10 executives globally expect their firms to post stable or
high growth. Yet, when planning for the year, the study showed that leaders in
Asia are most concerned about the increasing cost of capital and debt,
persistent inflation, a tight labor market, and fierce competition for talent.
Human resource (HR) leaders in the Philippines echoed similar sentiments.
To address these challenges, HR leaders responding to the
survey – representing 66 companies – said they are looking to improve the
employee experience for key talent (76%), improve their total rewards
strategies (68%), rethink compensation structures (65%), and deliver on total
well-being (65%) this year.
The GTT uncovers the ways organizations are redesigning work
and the workplace, especially in light of sociopolitical and economic changes, and
identifies talent-related trends to enable organizations to thrive in the
future of work. Key findings of this year’s survey include the need for
employers in the Philippines to enable and build skills-based organizations,
and enhance their company culture to remain successful.