In recent years, there has been a significant increase in the outsourcing of remote working positions by Western companies to emerging markets. In the US alone, an estimated 300,000 jobs are outsourced annually to other countries in an effort to reduce costs and take advantage of the growing supply of technologically proficient talent pools.
The Philippines is one of the most popular locations for outsourcing remote support jobs due to the wide availability of young English-speaking professionals. However, many US companies overlook the country for outsourcing because of the perceived obstacle of working from a different time zone.
What many companies need to realize is that the time zone difference can not only be managed effectively but can even be turned into a customer support advantage. This article will serve as a guide for US companies hiring in the Philippines for remote work across time zones.
Why is hiring in the Philippines beneficial for US companies?
Advantages of hiring in the Philippines for US operations
The Philippines boasts over 20 years of experience in the Business Process Outsourcing (BPO) industry, specifically in the fields of IT, E-commerce, and customer service. The country is also ranked 20th in the world for English proficiency of its population.
Due to the wider availability of English-speaking talent with the specific skills that are commonly sought after, The Philippines is seen as a better alternative to other emerging markets for many Western employers. It is also cost-effective, as the remuneration rates are lower than for hiring in similar roles in the US.
Another added benefit that is seeing a growing appeal for US companies is the fact that the Philippines is in a different time zone. This opens the door for US companies to offer around-the-clock customer support options for their clients by hiring Filipino employees who can adapt to various time schedules.
Most popular remote positions to outsource
The Philippines has a widely available and young workforce, with the average worker age being 23 years. US companies can therefore benefit from technically savvy professionals who are more likely to stay on board with a company for a longer period. The most common positions outsourced in the Philippines are:
- Customer service support
- Tech support
- Back office support
- Web and software development
- Sales support
- Virtual Assistant
- Billing and invoicing
- Health care support
As most of these roles require flexibility in terms of schedule, Filipino workers are typically more open to accommodating employers across time zones. Working night shifts, for example, is a commonly accepted option in the Philippines.
Key benefits for hiring in the Philippines
It is important to stay up to date with the most common benefits offered by employers in the Philippines to increase employee retention within your company. Including these benefits in your contracts can improve your chances of attracting and retaining talent compared to other companies hiring for similar positions:
| Mandatory benefits | Supplemental benefits |
| 13th-month pay | Performance bonuses and appraisals |
| Minimum 5 days of annual leave | Annual meetups and corporate outings |
| Social and medical insurance contributions | Private health insurance packages |
| Night shift and overtime differentials | Work-from-home stipends |
Depending on the type of position and schedule that US companies are hiring in the Philippines for, it can be advantageous to offer tailored benefit packages. For example, you could offer supplemental private health insurance for night shift workers, who are at higher risk of being sick. To learn more, read our guide to employee benefits in the Philippines.
Navigating remote work across timezones
Coordinating between timezones in the Philippines and the United States
If you have a US company and are considering hiring in the Philippines, then you must ensure that you consider the time zone differences with the location of your corporate office or customer base. The Philippines operates on a single timezone which uses a UTC+08:00 format and does not use daylight savings time. Below you will find the time difference for the main US hubs:
Understanding the night shift differential in the Philippines
For US companies hiring in the Philippines to perform remote work duties across time zones, it is important to ensure that any employees working night shift hours are paid with the night shift differential. This is a mandatory regulation in the Philippines to ensure that night shift workers are compensated for working outside of normal working hours.
According to the Labor Code of the Philippines, employees who work between 10:00 PM and 6:00 AM Philippine Standard Time (PST) are entitled to a 10% pay increase for night shift work. Even with the increase, hiring costs remain lower in the Philippines than in Western countries.
If you are outsourcing customer support and virtual assistant roles to the Philippines, hiring nigh shift employees can be an efficient way of ensuring 24-hour service options for customers, which is widely considered a competitive advantage.
Best practices for efficient performance management across timezones
For US companies hiring remote workers in the Philippines, you will inevitably have to put in place certain operational structures to properly manage the performance of your remote employees in the Philippines despite the time difference. Below are some of the leading best practices for remote team management:
- Install remote working and supervision software
- Use virtual communication tools
- Set up weekly or bi-weekly check-ins to monitor employee performance and wellbeing
- Set up Remote hubs for stronger employee supervision and performance
While the suggestions listed above primarily focus on managing your remote workers, most US companies employing remote workers across time zones will also want to put in place strong security measures to ensure that their data remains safe. Take a look at our employer’s guide to remote work data protection to discover some of the leading practices in data protection.
Outsource your remote positions more effectively via an Employer of Record
Hiring remote employees in the Philippines can be very beneficial for US companies seeking to reduce their overall labor costs and provide quality around-the-clock customer support services. By partnering the an Employer of Record (EOR) you can take advantage of a pre-established network of talent and a local HR team that is well-versed in labor regulations for the Philippines.
RecruitGo’s EOR will act as the legal employer of your remote workers in the Philippines and will ensure full compliance in terms of payroll, night shift differentials, and tax reporting. We can also help you set up remote hubs in the Philippines to ensure that your remote workers can work in an office setting of your design to foster strong performance and innovation.
If you have a US company and you are seeking to hire remote workers in the Philippines, contact RecruitGo via the form below. Our experts will advise you on the best way to set up your operations across time zones and help you with every step of the hiring process.
