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What Salary Raise To Give Your Philippines Team

April 16, 2024

what salary raise to give your philippines team

A salary raise can significantly enhance the motivation and loyalty of your Philippines team members. Providing salary raises to your team is a crucial aspect of maintaining a motivated, dedicated, and productive workforce.

As a business owner, you should regularly review and adjust compensation as it not only acknowledges the hard work and achievements of your employees but also reinforces their value within the organization.

This is no different for your Philippines team.

Pay raises act as a tangible expression of appreciation, which can lead to increased job satisfaction and loyalty. Moreover, competitive salaries help retain top talent, reducing turnover and the associated costs of recruiting and training new staff.

By investing in your employees through fair and timely raises, you create a positive work environment that fosters growth, innovation, and a shared commitment to the company’s success. Salary raises are not just a reward; they are an investment in the stability and future of the business.

Problems Deciding On Salary Raises

Your team members in the Philippines might exhibit a tendency to be shy or reluctant about initiating discussions regarding salary increases. Don’t be confused! This is a behaviour that could stem from cultural norms of humility and deference.

They would typically try to seek advice and validation from colleagues and peers to gauge the appropriateness and timing of such a request. They might look for benchmarks or precedents in similar roles, or even seek consensus from online forums and their personal or professional networks, all in an effort to avoid overstepping social and professional boundaries.

Understanding this context, you can adopt a proactive stance by regularly opening up the dialogue about compensation. This approach demonstrates that you not only recognise and are attentive to the standard market practices but also genuinely care about ensuring fair and competitive remuneration for your team.

By initiating these discussions yourself, you alleviate the pressure on your Filipino team members to broach the topic and underscore their worth to your organization.

When you engage in these conversations, it’s important to be transparent about the company’s financial health and the criteria used to determine raises. This can include factors such as individual performance, the team member’s role in the company, market rates, and the company’s pay structure.

By doing so, you create an environment where employees feel their contributions are seen and valued, and where they can have open discussions about their career growth and earning potential without fear or hesitation.

This proactive communication can lead to a more motivated workforce, higher employee retention rates, and a stronger, more trusting relationship between you and your team.

Negotiating a Salary Raise with Your Filipino Team Member

Don’t enter negotiations without preparation! Consider these points:

Affordability: Review your finances to determine if a raise is feasible and to what extent.

Expectations: Inquire about your team member’s expected raise. They typically have modest expectations, with many suggesting a $1-$2 per hour increase.

Performance: Evaluate their work quality. A raise is often anticipated after six months, especially if the starting wage was on the lower end.

Starting at a Higher Rate: If the initial rate was high, consider a structured approach, starting lower and increasing pay upon meeting performance benchmarks.

Alternatives to a Raise:
If a salary hike isn’t viable, consider alternatives:

  • Government Benefits Assistance: Aid with contributions to mandatory benefits can be highly valuable.
  • Insurance or HMO Contributions: Covering or subsidizing insurance or Health Management Organization (HMO) costs can be a generous alternative.
  • Paid Time Off: Offering paid leave during national holidays or Christmas can be a compelling offer.
  • Bonuses: A 13th-month bonus, customary in the Philippines, can be a significant incentive.

Always discuss with your Philippines team member to find mutually agreeable alternatives.

The Bottom Line
Focus less on how much to raise and more on what your team member deserves based on their contributions and performance.

Remember, investing in your current team member is often more cost-effective than the expense and time associated with training someone new. Their understanding of your business and potential insights can be invaluable.

Ready to find great Philippines team members? I use to grow my businesses, with roles such as customer service, technical support, programming, software development, web design, telemarketing, telesales, customer success, project management, graphics design, video editing, SEO, and many more.

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