The Philippines’ labour and hiring landscape was influenced by growing interest from global companies looking to establish their shared service centers in the country, reflecting the country’s skilled workforce and cost effectiveness. This trend, which saw Manila and Cebu emerging as the main hubs that companies chose to situate their centers, contributed to hiring demand in some sectors.

Nevertheless, the Philippine market faced a slate of challenging economic conditions. “Factors like inflation, geopolitical tensions and global crises, including wars and economic downturns, have cast dampened the confidence of both companies and candidates. These have influenced hiring strategies and candidate expectations, prompting a more cautious approach in decision-making,” recounts Alejandro Perez-Higuero, Director at Robert Walters Philippines.

In response to these conditions, there was a notable correction in investments and hiring practices among the most advanced functions, particularly the technology sector.

Read on to find out more about Alejandro’s expectations for the Philippine labour market in 2024.

More Balik Bayan candidates wanted for leadership roles

“We are already starting to see more leadership hires which a focused on environmental, social and governance (ESG),” points out Alejandro, who expects this trend to continue moving into 2024.

Consequently, as ESG and corporate social responsibility (CSR) takes up more mindshare in workplaces, companies will create more Human Resources (HR) positions tailored for recruiting and building a workforce with these values. There will thus be a greater need for more professionals who are well-versed in these areas, Alejandro anticipates.

As economic conditions remain uncertain, both company and candidate confidence are expected to remain subdued. Companies will hire with restraint and be more precise in the candidates they are looking for, while candidates will also have an eye on stability when considering job moves. However, global interest in the Philippines as a shared services center will continue to grow.

“Another growing trend we’ve seen is companies sourcing for talent to fill leadership roles through our Balik Bayan campaign, which connects companies with skilled Filipino professionals based abroad with valuable, overseas work experience,” discloses Alejandro.

Key hiring trends for 2024

With more shared services centers sprouting up in the country, Alejandro surmises that this will drive higher demand for business heads to lead the hub. The structure of such centers and the talent who lead them will be able to have a greater impact on business operations in the region.

In 2024, companies will also invest more in automation and digitalisation. They will look to develop and use technologies that can help them lower costs, and raise productivity and efficiency.

Lastly, Alejandro expects that there will be a rising demand for local commercial leadership positions as companies set out to create the best omnichannel consumer experience.

With all these factors at play, the most in-demand skillsets in the Philippine labour market in 2024 will be automation, digitalisation, tech and digital competencies, commercial leadership, and P&L management. Professionals with international exposure, both in terms of markets and stakeholders, will also be in strong standing.

Advice for talent attraction and retention

Candidates in the Philippines are motivated by a combination of salary increments and learning, development and growth prospects when considering new job opportunities. Flexibility is also an important benefit that Alejandro says the workforce is not keen to give up, especially as some companies are reviewing their options for moving their teams back into the office full-time.

Having a stellar candidate experience is now vital as the hiring market becomes more competitive, with more players vying over the best talent.

"Companies who can lay out a compelling story about the role they are hiring for and how it plays out in the company’s vision will have a better shot at winning the candidates they are after," Alejandro affirms. 

To attract top talent, Alejandro proposes that companies follow the 70/30 rule – hiring talent who can perform 70% of the job requirements while knowing that they will need to learn the remaining 30%. This engages high-demand candidates with the challenge of gaining exposure to new tasks and the prospect of developing new skills.

“Often, companies need candidates who are ‘plug and play’ because they do not have the time to train someone new and they need the new hire to jump in and help immediately. That is why it’s wise to invest in retention efforts at an early stage, as existing employees can be highly capable and tailor fit for the company’s purpose and vision,” explains Alejandro.

Companies looking to retain their top talent should make sure they are in a good position to continue learning. They should also have the space to think out of the box on how they can contribute to their organisations, and be well compensated according to market rates.

Salaries hold steady

In 2024, salaries are expected to remain stable, with inflation taken into account. Job movers with in-demand skillsets are likely to receive up to 25% pay increment.

Find out more

Request access to our 2024 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Philippines.