The Philippines' job market is shifting as the demand for skilled talent intensifies. Central to this transformation is the increasing value placed on Filipino professionals with overseas experience, a trend reshaping recruitment strategies and compensation practices nationwide.

The Robert Walters Global Salary Survey 2024 provides a comprehensive analysis of this phenomenon, highlighting a notable surge in demand for these professionals. This uptick is accompanied by generous salary increments and bonuses, especially prominent in the high-demand sectors of technology and finance, where the projection of salary increases can reach up to 30% for job movers.

This compensation strategy reflects a broader trend of valuing international experience and signals a shift toward a more globally competitive Philippine job market.

However, this optimistic outlook is tempered by a discernible gap between what employers offer and what employees expect, particularly concerning compensation, benefits, and work-life balance.

The survey reveals that employees are motivated by career advancement prospects, with two out of four indicating their intention to seek new roles within the year. Their decision-making is significantly influenced by benefits such as attractive bonus schemes, private healthcare, and flexible work arrangements. Moreover, over half of the workforce remains receptive to counter-offers, indicating a dynamic and competitive job market landscape.

Deciphering employee expectations

One of the critical challenges facing companies is aligning with employee expectations, especially regarding work-life balance and workplace flexibility. Employees' notable preference for a four-day workweek and well-being services suggests a shift away from traditional work paradigms. This shift highlights a mismatch between employee desires for reduced office time and employer expectations for a more conventional office presence.

Alejandro Perez-Higuero, Director of Robert Walters Philippines, noted the importance of candidate experience: "Having a stellar candidate experience is now vital as the hiring market becomes more competitive, with more players vying for 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."

Emerging trends: AI, sustainability and commercial leadership

Emerging trends and challenges are also addressed in the survey, particularly the increasing reliance on AI and technology, the push for sustainability, and the need for commercial leadership skills. Despite the potential of AI to enhance efficiency, the survey indicates that employers and employees face challenges in meeting high salary and benefits expectations coupled with a shortage of specialised candidates.

Companies adopt strategies like enhancing learning and development opportunities, implementing hybrid work policies, and increasing well-being initiatives. Skills in automation, digital competencies, commercial leadership, and profit & loss management are in high demand, particularly emphasising the value of international exposure.

The Philippine job market's evolution is closely tied to the growth of shared service centres and a pivot towards digitalisation and commercial excellence. Establishing shared service hubs by international organisations in cities like Manila and Cebu is reshaping the labour market, creating a demand for business heads and professionals with overseas experience.

This demand for internationally experienced professionals is reshaping the local job market and aligning with the nation's growth aspirations. Initiatives like the Balik Bayan Campaign, which connects companies with skilled Filipino professionals abroad, underscore the increasing recognition of the value of international experience.

Salaries are expected to remain stable

As the job market continues to evolve amidst economic fluctuations, the survey offers insights into a future where salaries are expected to remain stable, providing significant opportunities for job movers. This environment presents a golden opportunity for Filipino professionals with overseas experience to leverage their global insights for leadership roles, driving innovation and competitive advantage in an increasingly interconnected world.

Some insights for business and talent leaders include adapting to changing workforce expectations, investing in candidate experience, embracing digital transformation, prioritising well-being and development, and leveraging international experience. These strategies are essential for attracting and retaining top talent, navigating the competitive job market, and ensuring that businesses remain at the forefront of innovation and growth in the global economy.

Key takeaways for business and talent leaders

Adapt to evolving expectations: Businesses must align their compensation and benefits packages with the changing expectations of today’s workforce, particularly regarding work-life balance and flexibility, to attract and retain top talent.

Invest in candidate experience: Crafting a compelling narrative about the role and its importance within the company's vision is crucial for engaging and winning over prospective candidates in a competitive job market.

Embrace digital transformation: As demand grows for skills in AI, technology, and digitalisation, companies should focus on upskilling and reskilling employees to meet future challenges while leveraging international experience for innovation and leadership.

Prioritise well-being and development: Implementing strategies emphasising well-being, hybrid work policies, and learning opportunities can significantly impact employee retention and satisfaction, addressing the gap between employee expectations and current offerings.

Leverage international experience: Recognising and valuing the broad market understanding and diverse skill sets of professionals with overseas experience can give businesses a competitive edge in a globalised economy, driving the nation's growth aspirations forward.