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State of HR in the Philippines: 7 Emerging Trends

 June 3, 2019
 John Marco Oscillada

Human resources is all about making sure that companies and employees have a harmonious working relationship. Thanks to technology, human resources teams have gone a long way in revolutionizing the way they work today. Technology has also helped HR teams create various initiatives that positively impact employee engagement, work satisfaction, and recruitment.

2018 gave an opportunity for human resources professionals to uncover the trends that define what work really is for employees. This year, human resources teams want to explore new territory in terms of technology-driven initiatives that prioritizes employees’ welfare.

But there are a lot of other factors that affect the direction of where human resources is heading. Sprout Solutions, a leading Philippine-based HR and payroll tech firm, made an inquiry on the state of human resources. It aims to know the current state of human resources in the Philippines and how it defines its own future.

This article explains the major challenges that hindered previous human resources pursuits. It also focuses on the trends that define how human resources in the Philippines is evolving in the coming years.

What’s the current state of human resources in the Philippines?

Relatively small funding hampers HR teams’ growth potential and expansion efforts

state of hr philippines 2019
Most HR teams in the Philippines typically have 1 to 5 members.

Most HR teams in the Philippines are very small, typically with less than five human resource specialists per company. This represents half of all respondents in the survey. Other companies, mostly major ones, have established teams composed of 6 to more than 20 employees. Generally, bigger companies with larger budgets have the opportunity to support HR team expansion and growth.

state of hr philippines 2019
Almost 6 out of 10 HR professionals claim that they don’t have enough funding to support human resources initiatives.

Incidentally, many HR professionals felt that they can’t support their own growth because of relatively small funding. This tells us that human resources teams’ growth are heavily dependent on financial support they get from their respective companies.

HR professionals complain about manual work, yet are still very happy at what they do

There’s a major pain point that human resources teams complain about the most: manual work.  It’s a fact that they still manually process internal labor concerns and recruiting potential hires.

Human resources professionals are genuinely concerned on how they handle cases of labor disputes. Resolving labor disputes usually take up lots of time. They complain that it needs more time from them, because they are required to be personally engaged with the employees concerned. HR professionals agree that this lost time should have been used for other efforts and projects.

state of hr philippines 2019
HR professionals admit that labor relations and recruitment processes take up most of their time.

Another challenge for most HR teams is the entire recruitment process. Lots of recruiters still manually find, filter, and pick the right candidate for any available role. But many human resources teams successfully used tech-based platforms such as online job boards and social media to find talent. However, the rest of the recruitment process still requires grunt work that eats up a lot of their productive time.

Despite these challenges, many human resources professionals are inspired by their passion for HR. This helps them accomplish any task – daunting or otherwise.

HR teams are already looking at software solutions to simplify HR and payroll processes

Majority of human resource professionals have already migrated towards the use of technology in HR and payroll processes.

Many software solutions, such as Sprout HR and Sprout Payroll, have transformed the way human resource and payroll professionals do their everyday tasks. HR and payroll processes have been streamlined to just a few clicks on a web-based dashboard, thanks to these software solutions. This user-friendly approach to HR and payroll processes give timely, precise, and efficient control and management of various HR and payroll processes across the board.

state of hr philippines 2019
9 out of 10 HR professionals prefer to use automated solutions for HR and payroll processes.

Companies have also invested in tech-enabled, enterprise-grade hardware solutions that aid in managing employees and to simplify internal processes. An overwhelming 80 percent of surveyed human resources professionals stated that their company uses biometrics to manage employee attendance records. 20 percent of respondents said that they still use time cards and log books to manage their employees’ attendance records.

HR teams found success in social media for recruitment

Social media has come a long way in connecting people and businesses. This time, it made its way into the world of human resources.

According to many human resource teams, social media has greatly helped them find talent. Forbes Magazine also published a report last year, saying social media bridges the gap between passive candidates and potential employers. This makes the initial headhunting process a breeze for both the employer and the employee.

HR teams were able to successfully use social media platforms in sourcing new talent.

Facebook and LinkedIn are two of the most popular social media platforms in the Philippines that human resources professionals consider to be the most efficient and cost-effective tools in recruiting new talent.

Many HR professionals take advantage of the powerful recruitment features available in social media platforms. In fact, 8 out of 10 professionals claim that social media has helped them in acquiring the right talent at the right time. Recruiters love the way social media channels handle their recruitment efforts by simplifying the process of sorting out multiple candidates across different job postings. As a result, many teams have invested their time and effort to create recruitment campaigns anchored on the power and reach of social media.

state of hr philippines 2019
The use of traditional recruitment platforms has greatly reduced, due to the widespread adoption of online platforms such as social media and online job boards.

In addition to the use of social media, HR professionals still rely on online job boards to source talent. Online job boards remain as one of the top platforms for job applicants to find openings. HR teams take advantage of this huge talent pool in various online job boards in an effort to streamline their recruitment processes.

Learning and development thrusts are effective in retaining employees and keeping them engaged

Oracle published a report about the global state of human resources in 2018. It was found out that employees who are more engaged with their work are the ones who are likely to say that they enjoy their work. As more of today’s employees are experiencing greater emotional stress compared to previous generations, it’s important for human resources teams to emphasize more on efforts that keep employees engaged.

state of hr philippines 2019
Learning and development programs have been observed to have a positive effect on employee retention.

HR professionals in the Philippines see the value in nurturing employees by investing in their professional growth and development. It’s evident in the amount of time and money they’ve poured into training and development programs for employees, particularly a significant number of ongoing training and certification opportunities.

A result of this collective effort in learning and development programs for employees is an increase in employee retention and engagement. Almost 9 out of 10 surveyed professionals have spoken about the positive effects of training and development programs for employees. They’ve observed that employees are noticeably more satisfied and engaged with their work ever since companies have started implementing learning and development efforts within their organization.

Employer branding is a relatively new facet of human resources

Many job applicants, especially fresh graduates, tend to look closer into the reputation and brand of the companies they’re applying to. However, looking from the perspective of the employer’s side, branding isn’t one of their top priorities.

60 percent of surveyed human resources professionals have never launched any form of employer branding campaigns. It’s because they believe that their company branding doesn’t affect the way they recruit new talent or become perceived by other people with its brand reputation.

state of hr philippines 2019
HR teams aren’t too keen on promoting employer branding.

An interesting observation, however, is that more than half of surveyed professionals are aware of or have used employer review sites such as Glassdoor and Payscale. These sites are the usual go-to resource for job applicants who are looking for a company that’s aligned with their values and culture. Although this is the case here, teams aren’t too keen on focusing on employer branding as it’s still a relatively new facet of human resources, especially here in the Philippines.

For companies that actively maintain and promote their branding as part of attracting new hires, HR teams typically work in close collaboration with the marketing team. This joint effort works for some organizations, while other companies usually delegate the task towards either the human resources or the marketing department.

Process automation is the future of HR

state of hr philippines 2019
Many human resources professionals believe that the future success of HR lies in innovation and technology.

HR professionals agree that innovation and technology is key to achieving success in the coming years. They agree that process automation enabled by HR and payroll software will sustain human resources growth for 2019 and beyond.

Most HR teams are in favor of using process automation across the board. Efficiency and productivity are key factors in achieving and maintaining success in the field of human resources.

What’s in store for HR next year?

Sprout Solutions’ comprehensive study uncovered lots of things about the current state of human resources in the Philippines. The study revealed how human resources professionals use different ways in solving real-world issues that affect the employee life cycle. Moving forward, human resources teams are optimistic that using tech-driven HR and payroll software will eliminate grunt work.

Be it major or incremental, human resources professionals in the Philippines are looking into all kinds of improvements in HR and payroll processes. Teams are starting to see the benefits of process automation as it makes its way into their existing workflows. More human resources teams are optimistic about greater technology adoption in HR and payroll processes in the coming years.

About Sprout Solutions

Sprout Solutions has always been at the bleeding edge of technology-driven HR and payroll solutions. Hundreds of Philippine-based companies now enjoy a streamlined HR and payroll processing experience–thanks to Sprout’s HR and Payroll software solutions.

Sprout Solutions is poised to radically improve businesses in the Philippines with its custom HR and payroll software. Sprout believes that manual work should be a thing of the past. Its comprehensive HR and Payroll software lets your team process things with a few clicks.

To view our comprehensive 65-page report on the state of human resources in the Philippines this 2019, click this link.

John Marco Oscillada

John Marco Oscillada

John Marco Oscillada is a Content Strategist at Sprout Solutions. He likes to be at the forefront of revolutionary technology that helps transform people and businesses together.

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