HRM Notes
HRM Notes
In an economically uncertain time, the instinct for many Upskilling and employee development opportunities
leaders is to reign in investments. Investments in DEI help everyone already on the payroll. For hiring
cannot be among them. Diversity efforts, policies aimed managers, they also serve as an enticing benefit for
potential candidates that don’t see the same LGBT+ community, but there are still heated debates
opportunities at their current employer. regarding same-sex marriage and with the SOGIE
Equality Bill. In your organization, it’s always a good
5. Collaboration among business and HR leaders move to avoid discrimination, eliminate biases, and
Companies that continue to make investments in challenge stereotypes, especially with your gender- and
culture and employee experience will have a SOGIE-diverse workforce.
competitive edge in retaining, recruiting, and hiring Age Diversity
employees looking for a new role. But that edge hinges
on the resolve of business and HR leaders to make them Having a multi-generational workforce can be a great
a business priority. strength for your company. After all, having people from
different age groups will give you access to the wisdom
To build that business case, leaders will, again, need to of multiple generations. If you want age diversity in your
turn to the data and people analytics that a recognition organization, remember that just like with gender and
system or periodic pulse surveys provide for their SOGIE diversity, you have to avoid discrimination,
workplace. They should also incorporate broader proof eliminate biases, and challenge stereotypes. After all,
that diverse companies see greater business outcomes, ageism is a very real problem in the workplace.
and turnover and low wellbeing carry hefty and
unexpected costs. Socioeconomic Diversity
The Different Types of Diversity in Philippine HR Socioeconomic diversity is based on a worker’s
education and financial status. While educational
It’s normal to have strong bonds between colleagues in attainment is usually a criterion when screening
the Filipino workplace culture. Still, you can’t dismiss candidates, a person’s amount of money should not be
the fact that despite getting along, these employees are a factor in the hiring process. Individuals from different
still unique from each other. Here are the different types walks of life contribute unique views and opinions to
of diversity you may encounter (and strive for) in your business.
Philippine HR.
Racial Diversity
Religious Diversity
Workforces in the Philippines are getting more
A lot of Filipinos have strong faith. Over 80% of the globalized. It’s not uncommon these days to see people
people are Catholic. Other than Catholics, there are from different races walking alongside Filipino
also Muslims, Christians, Evangelists, and more. When it employees to get to their respective offices. And with
comes to their values and sometimes even with how the talent shortage, this can be another market for you
they act, their religious beliefs can have an influence on to tap.
them. You also have to understand that due to their
respective religions, they will have some activities that Hiring for diversity is not just a fad. And the Philippines
they may prioritize or they can’t do. For example, is not short of diversity. You just have, always,
Muslims have their fasting during the month of remember that the best way to manage these people is
Ramadan and they can’t eat pork. Members of Iglesia ni to respect them, and they can be your business’
Cristo don’t celebrate Christmas, so they may not competitive advantage.
participate during your company’s Christmas parties. It’s
important that in your organization, you respect each of Gigs Fitting into Filipino Culture
your employees’ faith. One of the most significant benefits of the gig economy
Gender and SOGIE Diversity in the Philippines is the flexibility it offers workers. In a
country where unemployment is a persistent problem,
A study by Mckinsey Global Institute (MGI) actually the gig economy provides a new way for people to earn
found that in terms of gender equality in work, the a living and work on their terms. With the rise of
Philippines leads the Asia Pacific region. But, there’s still technology, it has become easier for people to find gig
room for improvement. Especially when you go beyond work, and the number of gig workers in the Philippines
the “male” and “female” category and explore the is expected to continue growing in the coming years.
treatment with persons of diverse SOGIE (Sexual More and more people are freelancing on websites like
Orientation and Gender Identity and Expression). UpWork, managing online stores in digital malls like
Regarding this issue, you could say that society is still Lazada and Shopee, and taking casual employment like
fairly conservative. They’re open with members of the
Grab or FoodPanda. Some Filipinos even do this job market as a viable and sustainable way to make a
simultaneously! living.
Because of this, many gig workers in the Philippines are
able to earn more than they would in a traditional job,
which can help them achieve a better standard of living.
This is especially true for those in highly skilled or
specialized fields, where demand is high and gig work
offers the opportunity to command premium rates. A What are the Pros and Cons of Being a Freelancer?
graphics artist who also sells stickers, and does custom Pros
decos can make more as a gig worker on top of or even
over being a regular employee. Low Cost of Living: One of the most significant
advantages of freelancing in the Philippines is the low
Is the Gig up for HR? cost of living. Accommodation, food, and transportation
The gig economy is also expected to have a significant have less impact on your budget, allowing you to spend
impact on the Philippines’ HR landscape. As more and less money and save more.
more companies adopt the gig model, they will need to Access to Skilled Talent: The Philippines has a talented
find new ways to attract and retain talent. This will workforce and an education system that focuses on
require a new approach to HR, one that is more flexible practical and vocational education. This means that
and responsive to the changing needs of the workforce. there is always a high availability of skilled talent, which
Companies will also need to develop new strategies for is particularly handy for freelancers who need to
training and development, as well as for compensating outsource projects or subcontract tasks.
gig workers fairly and equitably.
Flourishing Gig Economy: The Philippines' gig economy
One of the biggest challenges is the lack of job security is rapidly growing. Startup companies and small
that comes with gig work. With no guaranteed income, businesses that want to outsource non-core activities
gig workers must be able to find new work regularly to such as marketing, graphic design, and web
maintain their standard of living. This can be especially development will find it easy to hire talent, especially
difficult in a country where there is an all time high with the numerous platforms available such as Upwork,
inflation, and there are limited opportunities for work. Fiverr, and Freelancer.
For HR, this means that there might be a rise on
resumes that have short lived employment or missing Language Proficiency: A majority of Filipinos are fluent
work months or even years. in English, making communication between clients and
freelancers smooth and hassle-free.
Another challenge is the issue of benefits and
protections. Gig workers in the Philippines are not Cons
typically eligible for benefits such as health insurance or
Poor Infrastructure: Despite the high availability of
paid time off, which can make it difficult for them to
skilled talent, freelancing in the Philippines can be
take care of their health and well-being. While this is a
challenging due to poor infrastructure, such as slow and
common problem that HR will be addressing when it
unreliable internet connections.
comes to gig employees, this is something that is better
given solutions by the government and the private Payment Platforms: The country's financial landscape
sector. can be off-putting to freelancers who rely on payment
platforms. The commonly used platforms like Paypal,
The gig economy is poised to play a significant role in
Skrill, and Payoneer have limited functionality in the
the Philippines’ future, providing new opportunities for
Philippines, with the notoriously long wait times and
work and earning a living. While it presents many
high fees making it a significant challenge for freelancers
benefits, it also brings new challenges for HR, including
to access their funds.
job security, benefits, and protections.
Time Zone Disadvantage: The time difference can also
As the gig economy continues to grow, it is essential for
cause problems with clients in other countries. The
the Philippines to develop new approaches to HR that
Philippines’ time zone is GMT+8, which can be difficult
can help ensure that gig workers are treated fairly and
when working with clients in different countries with
equitably. With the right policies and support, the gig
different time zones.
economy has the potential to transform the Philippines’
Competition: The booming industry means you'll also economy workers in line with the company’s expected
face stiff competition as more professionals are joining standards without contracting them full-time.
the roster of freelancers every day.
Visibility
Lack of health coverage: Freelancers in the Philippines
often don't have access to affordable health insurance. Another challenge for HR teams in 2022 follows on
This can be a major drawback for those who depend on directly from that above – visibility. When a business
freelancing as their primary source of income and may relies on the pace and flexibility of the gig economy, the
lead to financial insecurity during times of medical temptation will be there to cut HR out of the loop
emergency or illness. A quick remedy to this would be altogether. Why bother holding interviews and chasing
to invest in private health insurance from a reputable references for a short-term hire when the digital
provider such as InLife. disruptors can provide you with one with a tap of a
screen?
Flexible workforces
The answer is above – let alone the dangers to security,
“For employees, gig working gives them flexibility and cost control and the fact they may be handling sensitive
the option to pick and choose the projects they work material or data.
on,” says Sally Hunter, managing director of EMEA and
global accounts at Cielo. The challenge for HR teams is to make those arguments
and ensure they are a part of the process in taking on
“The modern workforce wants to work wherever and gig workers in order to avoid what Dr Hardey warns
whenever they want, whilst maintaining high levels of could be “a complete minefield”.
development and fulfilment. The gig economy does just
this – giving people unlimited flexibility whilst also Labor laws
allowing them to plan their own development with each Globalization’s impact on HR management is directly
project, rather than following a conventional career related to a country’s labor laws. For example, the
path.” minimum wage in Canada will vary from that in the US.
Regulations In the same way, Australia and China’s rules on
employee benefits and compensation differ. The
Last year saw a slew of legal and policy-based action minimum working hours in Malaysia, India, Britain, and
from governments and businesses, designed to reflect Hong Kong will depend on the country-specific labor
the changing nature of work, balance the competing laws.
priorities of employees and employers, and clamp down
on unlawful employment practices, all of which So, global organizations must keep such factors in mind
ultimately have an impact on HR decision making. while drafting their HR strategies. Their HR management
must possess a thorough knowledge of the domestic
Management and international labor laws of the relevant countries.
Violation of labor laws can lead to severe legal issues.
Although, as alluded to earlier, whether gig workers are
employees has been tested by the courts, broadly: HR is Recruitment
not the gig workers’ full-time employer.
Employers recruiting foreign employees can vouch for
This, as Dr Hardey says, is a challenge when “one major the rapid change in the hiring dynamics. Different
factor in your roles and responsibilities working in HR is countries have varying names and follow unique
making sure there isn’t any kind of legal heavy-lifting or evaluating criteria for educational qualifications and
anything nasty that’s going to bite you on the bottom in certificates. For example, you want to hire a candidate
the future with regards to employee behavior”. for a position with a minimum educational requirement
of an MBA degree. The evaluation method for the MBA
She adds: “That’s a lot more difficult to control and degree will vary from country to country, ranging from
mitigate for if you have a workforce that hasn’t signed a the degree name to the grades or credits offered in the
contract, isn’t formally working for you and may get up course.
to no good.”
Thus, HR departments must be aware of the country’s
The challenge for HR, which has a duty to protect the evaluation criteria for educational qualifications from
welfare of its workforce, is how to bring the gig where they are hiring and judge candidates accordingly.
Training Organizations now hire employees from diverse cultural
and social backgrounds. Managing a diverse workforce
Companies usually offer extensive training to new can get challenging due to cultural sensitivity and may
recruits, detailing their job responsibilities and the sometimes lead to disputes in the workplace. As an
company policies. However, the impact of globalization impact of globalization on HR practices, HR executives
on HR practices demands distinct training modules for a must clearly define acceptable workplace behavior and
global workforce. For example, if an employer transfers encourage open communication channels to avoid
a local employee overseas, they must train them per conflicts during work.
offshore work expectations and culture.
Managing diverse workforce
The globalization of the workforce has created a mixture
Expatriation of remote and on/off-site teams across different
Thanks to globalization, companies must train their genders, cultures, locations, and ages. So, it becomes
employees to function in different countries with their crucial to cater to the needs of a diverse employee
regional offices. In fact, globalization in human resource group, which demands a global HR policy. HR practices
management demands HR departments to develop must percolate across different company parallels,
exclusive strategies for recruiting, training, retaining, teaching employees to respect their co-workers while
and motivating expats. maintaining workplace boundaries.
Communication procedures are a prime example of how Globalization in human resource management means
globalization is influencing human resource devising innovative evaluation measures to keep
management. The varying time zones pose a severe employees focused and motivated. HR teams can create
problem for multinational companies operating in a constructive feedback system for regular evaluations
different countries. For instance, while the regional instead of yearly assessments. The rise in the
head office in one country wraps up work, an office in enrollment for performance management certification is
another country might just start its workday. another example of how globalization is influencing
human resource management.
Attracting and retaining talent
Compensation package
With ample entrepreneurship opportunities and
employment prospects available today, employees It is a challenge for companies to devise balanced
choose organizations having an excellent work culture benefits and compensation packages for all employees
and pro-employee stance. Hence, the best way to across different countries. So, a company’s HR
attract talent in this era of globalization in human department must create a definite system by
resource management is to comprehend their considering the labor laws of the countries where it
workplace expectations during the interview. To retain operates to avoid penalties and legal complications.
employees, HR teams must create effective engagement
plans, provide them with ample scope for growth, and
help them strike a work-life balance.
Privacy and Security
A company’s employees and data are the responsibility
of the HR department. As countries function across
borders, the amount of data generated every day
increases exponentially. This compels HR teams to
monitor their human and intellectual resources strictly
and protect them from security breaches. They must
implement adequate security measures and draft well-
thought-out confidentiality agreements for vendors.
Conflict management