1Salary Watch 2020:Philippines2 RGF Salary Watch: PhilippinesAbout this Report RGFs Salary Watch: Philippines report has been conducted with the aim of better understanding the salary trends and data across all industries and job levels in the Philippines.This report is based on an RGF-owned candidate pool covering more than 30,000 candidates (collected from February 2019 to February 2020) in our Philippines database. The definition of annual basic salary used throughout this report does not include allowance, stock, bonus or any other additional benefits, and the salary exchange rate used is USD1 = PHP52.Due to the real-time nature of some of this data, RGF encourages readers to use its insights at their discretion.3RGF Salary Watch: Philippines16Table of ContentsAbout the ReportTable of ContentsPhilippinesOverviewKey TrendsJob Market Trends Salary Data ReferencesAbout RGF 23 578 12 29304 RGF Salary Watch: PhilippinesOverview of the Philippines5RGF Salary Watch: PhilippinesNavigating Challenging CircumstancesLABOR MARKET SIZE44.7 MILLION1GDPUSD355.5 BILLION2PMI51.74FDIUSD1.15 BILLION3(2019 Key Index)The Philippines, one of the most vibrant economies in Southeast Asia, and known for its dynamic talent and labour market, was on track to display strong growth. However, the COVID-19 catastrophe had played a role in dampening the countrys potential to shine in 2020. The Philippines is known especially for its high performance in the service sectors, such as business process outsourcing (BPO), insurance, real estate, and finance. Prior to COVID-19, it had displayed an average annual growth of 6% in 20195, but due to the pandemic, the government said in May 2020 it expects the GDP forecast for 2020 willby 3.4%6. However, it expected to make a strong recovery in 20217. Boasting an employment rate of 94.7% in January 20208, the Philippines has seen a surge in the hiring of medical and healthcare experts, including nurses, physicians, administrative and medical attendants9in response to the global pandemic. With the government also making digitalization a priority, more companies are likely to hire tech talent in a bid to bolster their digital efforts. 6 RGF Salary Watch: PhilippinesThe Philippines economic growth will significantly decrease this year due to the COVID-19 pandemic. To control the spread of the virus, the government imposed community quarantine measures that have closed most private establishments in Metro Manila and the entire island of Luzon, which generates more than two-thirds of the countrys overall GDP. The global economic slowdown, coupled with sluggish domestic demand and a hiatus in major sectors such as tourism, trade, and manufacturing, hiring activities of local and multinational firms will not be as active when compared to the last two years. However, this pandemic will create job opportunities for some businesses. Companies that specialize in technology such as digital services and ecommerce platforms as well as healthcare and life science organizations in consumer healthcare, medtech innovation, and telecommunications will have immediate and lasting gains. As such, we expect to see these companies employing strong senior talent to direct their teams and business. Overall, salary increases would likely remain lethargic except for those industries set to gain in the midst of the ongoing global pandemic.Technology and Healthcare Sectors Remain Strong in The PhilippinesnullnullGeorge Alpert TarcaManaging Director,RGF Executive Search Philippines7RGF Salary Watch: PhilippinesData Takes CenterstageThe Philippines government has been leveraging digitalization to transform all segments of society in order to ensure greater public sector and government productivity, improve the consumer experience, and reform sectors and industries. Initiatives such as the E-Government Master Plan 2.0 (EGMP)13and the Philippine Digital Transformation Strategy 2022 lay out how information technology and digitization will galvanize the Filipino economy and move it towards an advanced, data-driven future14. Companies in certain sectors and industries have already embraced disruption brought by data and are reaping its benefits. For instance, transportation and financial services have turned to technology to foster transformation and drive new consumer behaviors. Consequently, emerging hiring patterns indicate that more employers are on the hunt for tech-savvy talent, especially senior and manager-level candidates familiar with the digital landscape15.Additional Benefits Employees Look forFilipino talent consider more than just salary, and look for companies that offer the following financial benefits12:PROFIT-SHARING SCHEME SUCH AS STAFF EQUITYPERFORMANCE-BASED BONUSESGUARANTEED REMUNERATION, SUCH AS A FIXED BONUS AND ALLOWANCEEmployees Salary Increment Expectationswhen they change employers11.43%76%51%73%Employers Annual Salary Increment Range16%10Key Trends(Data given was collected by RGF before February 2020)8 RGF Salary Watch: PhilippinesJob Market Trends9RGF Salary Watch: PhilippinesTalent TrendsWhile money is a motivator for Filipino talent, they are slightly more interested in receiving non-financial benefits, such as flexible working hours and the ability to work remotely. Beyond these benefits, candidates in the Philippines also look for companies that provide talent development opportunities and consider the leadership style of the management team16.Job Market TrendsPutting Public Health at the ForefrontThe 2020 budget saw the Department of Health in the Philippines receive a considerable increase in funds, with the aim of improving and expanding upon the countrys medical and healthcare services and facilities17. The injection has been timely, given the circumstances borne out of the COVID-19 pandemic. In addition to the government focus on growing the healthcare sector, the Department of Health released a new set of guidelines in early April on the emergency hiring of healthcare and medical talent such as nurses, physicians, medical equipment and technical operators, and administrative assistants at select hospitals and medical institutions. Though the guidelines include specific details such as salaries and allowances provided to these emergency contract workers18, with the governments long-term goal of improving the healthcare industry, medical talent in the Philippines will be in demand.60% 58% 53%SALARY INCREMENTOTHER BENEFITS BESIDES SALARY EXPAND KNOWLEDGE & SKILLSMedical Directors with 1015 years of experience earn up to USD73,000 annually at global companies in the PhilippinesHospital Management Directors with 1015 years of experience earn up to USD68,000 at global companies in the Philippines10 RGF Salary Watch: PhilippinesData Science Directors with 1520 years of experience earn up to USD163,000 annually at global companies in the PhilippinesBusiness Intelligence Managers with 810 years of experience earn up to USD130,000 annually at global companies in the PhilippinesCombatting the Talent CrunchThe Philippines has become increasingly invested in technology, and in empowering businesses across industries to embrace data and digitalization. As a result, there has been a push for candidates with expertise in areas such as artificial intelligence, analytics, cybersecurity and data. However, recruiters and employers continue to face challenges in hiring the right talent, either due to a mismatch between job requirements and skillsets, or due to outdated hiring strategies that are not compatible with the fast digital transformation the Philippines is currently experiencing. To develop a reservoir of dependable tech talent, companies and employers should first look inward and focus on developing the skills, competencies and knowledge of their workers to future-proof them against external circumstances, such as automation. Additionally, companies can also focus on attracting potential candidates with job benefits that suit their modern lifestyles, such as flexible working hours, retention bonuses, or additional annual leave if they achieve target goals.What employers are looking for in talent21:RELEVANT KNOWLEDGE AND EXPERIENCEOPEN TO SALARY AND BENEFIT NEGOTIATIONHeralding in “Hybrid Talent”The Philippines economy has been growing quickly, with the goal for businesses to be competitive with its Southeast Asian neighbors. To do this, organizations are focused on securing the tech-savvy talent that can sustain development as businesses grow. As 2020 began, the top jobs in the Philippines were all centered around tech roles especially data scientists, developers, and analysts. Though these hard skills are in high-demand, employers and recruiters in the Philippines also need candidates with soft skills relating to management, communication, and execution19. The desire for candidates with a mix of hard and soft skills often referred to as “hybrid skills” is a testament to how businesses are in the midst of transforming both processes and the workforces20. Start-ups across various sectors such as retail, agriculture and manufacturing have also displayed an increased need for tech talent to innovate and deliver new digital solutionsMITMENT