How To Hire Staff Overseas 3 Part Video Series and Guide

Video 1 - Why hire in the Philippines?

Have you ever looked at what your biggest cost is in running your company?

If you have, chances are likely that “People” is your biggest cost – and when I say “People”, I mean:

  • Salaries,
  • Superannuation,
  • Payroll tax,
  • Office supplies,
  • even Tea, Coffee and Biscuits.

It all adds up and usually accounts for up to 70-80% of a company’s fixed cost.

Well, guess what? Large companies such as big banks, insurance companies and major telecommunication companies worked this out a long time ago and they’re saving big bucks while out-competing small businesses.

Big companies have a huge advantage. They’ve got the resources to set up, hire, manage and troubleshoot problems. This is why hiring offshore has many advantages, particularly in our favourite destination, the Philippines.

Top 5 Reasons why you should consider hiring Offshore in the Philippines

Convenient Location

With just a short flight from Australia, you won’t even get jet lag, since the Philippines shares the same time zone as Perth! You’ll also attract more candidates because it means that they won’t have to work night-shift, unlike roles based in other countries like the US.

Save on Staffing Costs

A lower cost of living means it’s more cost effective to hire in the Philippines. This also means you save money on taxes, benefits, equipment, office supplies and bills.

 

Fluent English

The Philippines is the third largest English speaking country and has a 95.4% literacy rate, sharing close connections with Western Culture thanks to their history with the US.

 

High Education Standards

Staff that we recruit come from a pool of highly educated and skilled graduates with nearly 400,000 Filipinos graduating from college every year. Nearly half the graduates have technical experience holding Business Administration degrees, Marketing, Design and other specialised qualifications.

 

Global Experience

Offshoring is an industry that has existed in the Philippines for over 20 years and staff have worked with local and foreign companies of all industries and sizes.

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Video 2 - Challenges of Offshore Staffing

Now that you’ve heard all the benefits of Offshore Staffing, you might be wondering, “What’s stopping business owners from taking up Offshore Staff?”

Good question!

Great strategies were never without their hurdles. These challenges can stop smaller businesses from taking advantage of Offshore Staffing and using it to its full potential. Here are the most common challenges that can hold people back:

Uncertainty

Business owners often find the idea of using Offshore Staff difficult because:

      • They don’t have all the ideas to set it up properly,
      • They don’t have a clear understating of how to manage the offshore team in ways that would benefit their business or,
      • They’re afraid of wasting resources such as time and money if it doesn’t work out.

Without all the right information, it can be very confusing. “Where do I start?” “How do I find good skilled people?” “Is their quality of work good enough?”

Don’t worry, we’ll give you all the answers to these challenges at the end of the video.

Negativity

General misconceptions about Offshore Staffing can be enough to put business owners off of the idea. The most common misconception is the belief that sending jobs overseas is taking jobs away from locals, killing small businesses and affecting the local economy. Some businesses have tried Offshore Staffing but had a negative experience or have heard about other people having bad experiences, leaving them feeling that Offshore Staffing just doesn’t work.

Lack of Resources

Lack of Resources is also another obstacle that business owners face when considering Offshore Staffing. One thing we commonly hear from business owners is that they don’t have the time, money or knowledge to be able to hire Offshore Staff. Private business owners are already stretched thin without having to find the resources to dedicate to learning and preparing what is needed to set up and manage Offshore Staff.

You’ll find that most problems you experience with Offshore Staffing are the same as when you’re hiring local staff. If you’re going to set up your own offshore team, we found that you can easily overcome these challenges by doing your research and having a clear plan in place to help you hire and manage your team. You can even use apps or programs to help you track, manage and train your staff.

Offshore Staffing, when used for growth purposes is not just about cutting costs or fighting fires. When used correctly, it will actually help you create more jobs. You can use your Offshore Staff to give you and your team more time to focus on important aspects of your business. You’ll also be saving more money by delegating your offshore team to easier support tasks. This means you have more time to work on growing your business rather than working in your business.

Take, for example, Mel. Mel is a baker and runs her own boutique cake store. Everyone loves Mel’s cakes but she was struggling. She couldn’t juggle all the responsibilities of running a business. Mel was doing all the bookkeeping, administration, managing a small team and providing great customer service, all while baking cakes every day. Mel needed help and didn’t have the funds to hire more staff locally. Mel decided to hire an assistant offshore to help her manage her administration and customer service tasks. Basically, anything that can be done over the phone or the internet. This meant that the team could focus on completing more customer orders leading to the business making more money to hire local staff. This also gave Mel the time to focus on growing her business or spending less time at work and more time with her family and friends.

If you’re still unsure or don’t want to have a go at Offshore Staffing on your own, you can also get help from people like us.

Book your FREE 1-Hour Consultation Now!

Video 3 - Different Ways of Hiring Staff Offshore

If you were to hire a team offshore, there are three different categories that you might fit in to:

1. DIY Freelancing

2. The full-scale office set up or,

3. The middle ground option which is to get help!

In this video, we’ll run through the different options and you can get a feel for which one suits your needs.

Do-It-Yourself (DIY)

The DIY category involves bootstrapping it yourself. There’s literally millions of options online. While this is the cheapest, it does have some drawbacks. People using the DIY method have found that even though freelancers have been contracted to their business, it doesn’t guarantee that their projects will be at the top of priority list. The nature of freelancing means they are often juggling many projects at the same time or bidding on new projects which may affect their ability to deliver. Unfortunately, this can affect their working time and focus, which can cause major delays for other existing work leading to you needing to switch freelancers mid project. Juggling a heavy workload can also mean that your freelancer of choice may be completely unavailable to work with you when you need them.

Depending on where you are based, communication with your freelancer can also be tricky. Time zone differences can be a real headache to work around or schedule. If you’ve got a tight deadline or desperately need someone immediately, make sure you plan ahead. A solution can always be negotiated.

While it’s rare, some people have encountered issues with confidentiality and found it difficult to work with freelancers. There are questions about how to monitor their work and the biggest concern: “How secure is my IP?”

What you can do is ask that they sign a non-disclosure agreement but this is still a risk that you have to weigh up. Another thing to be aware of is that you will come across some freelancers with unethical practices. And look, it’s something that can happen with in-house employees too.

Full-scale Office Setup

Your second option, a full-scale office setup gives you far more control than working with freelancers and you can set low direct hourly rates. There are however, many factors in setting up an offshore office and the costs can add up.

Let’s use the Philippines as an example; a lot of red-tape is involved in setting up an office in the Philippines and it can take 3-6 months to complete. There are more than 20 permits and procedures you need to go through before opening up an office. Just registering your property takes 39 days to complete and involves 8 different procedures. There’s 47 different tax payment periods not to mention it takes months to get the electricity connected. It’s even hard to do something as simple as opening up a local bank account when you’re not a citizen. When added up, this is very costly in both time and money.

Your next step would be to hire your staff which is already a long and tedious process when recruiting locally, let alone overseas. Not only do you have to make sure that you drew up the right contracts, pick the right team and the right person to run your office and manage your team, you’ve also got to be aware of the local cultural practices as well as the business culture.

Once you find the right team, your next step would be fitting out your new office with supplies and the right equipment; more costs!

Get Help!

Your third option is to get in touch with people who have the experience, infrastructure, systems and processes to help you find the right offshore fit for your team. The “Get Help” option doesn’t just save you time and reduce your stress, working with people who specialize in Offshore Staffing saves you money from making fewer mistakes.

Specialists do this regularly and know the ins and outs of what is required, what issues can occur and how to fix them. You’ll end up with more resources and more time, with less headaches. If you were to approach a specialist company, it might cost a little more than if you’re working directly with a freelancer but you would gain access to a wealth of resources that can help you work out your hiring strategy and role specifications, handle the whole recruitment process and application screening so you can focus on running your business; saving you huge amount of time.

To meet some of our offshore staff, watch the next video or find out how we can help you out.

Book your FREE 1-Hour Consultation Now!

We hope you’ve enjoyed this mini video series and have learnt a bit about hiring staff from the Philippines.

In the downloadable guide below, you’ll find out what some of the most common roles are to hire offshore. See how you can help your business free up time while accessing resources to help grow your business.

 

Download The Offshore Staffing Checklist Guide
(Featuring the most common roles to hire for, in the Philippines)

 

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