Hosting one of the largest BPO sectors in the world, the Philippines has a dynamic labor market that is of importance globally. While companies in the Philippines have the advantage of immediate access to a robust workforce, they still need to navigate complex labour laws and keep up with workforce’s evolving expectations. That’s why awareness of market trends is important for businesses to form appropriate strategies that can facilitate business growth. In this blog, we will share some Kahanga-Hanga HR trends in the Philippines. Let’s take a look!
The Philippines’ Kahanga-Hanga HR Trends in 2025
Here are some of the most important HR trends influencing the labour market in the Philippines in 2025:
1. Wider Adoption of HR Technology and Digitization
The Philippines is pushing strong in its digitization policy, after the first digital transformation development policy loan was approved by the World Bank in September 2023. While the aim was to digitize the government sector, the private sector seems to have been catching up with the digitization initiatives.
Businesses across Philippines are adopting digital technologies to increase their efficiency while also lowering costs. HR processes, primarily employee data management, are being digitized for efficiency and sustainable recordkeeping.
Another cause for increasing adoption of HR tech is the rise of hybrid and remote work models. As more employees prefer hybrid and remote work, monitoring employee performance and ensuring employee engagement has risen to the top of the priority list.
Besides, some HRMS software also allow for automated payroll processing and compliance across geographical boundaries making managing remote and distributed workforces much easier. This lowers the cost of operations as well.
2. Need for Leadership Roles in Niche Areas
Companies are also prioritizing hiring skilled local talent for leadership roles. As the younger generation of workers are aware of the environmental and social impact of corporations, a company’s ESG (environmental, social and governance) and CSR (corporate social responsibility) policies also factor into employment decisions for candidates.
Hence companies are focused on finding leadership talent who believe in these values. Alejandro Perez-Higuero, Director of Robert Walters Philippines, also adds that consequently, companies are also creating HR positions and teams focused on these values so that eventually a workforce reflecting these values can be built.
3. Hub of SSCs for Global Enterprises
Owing to abundant local talent and cost effectivity, numerous global enterprises are looking to set up shared service centres (SSCs) in Philippines. Cities like Manila and Cebu have emerged as hot spots for these projects. This has resulted in rising hiring demands in sectors like IT, finance, HR, operations and data analytics. Consequently, job roles like data engineers, analysts and cloud engineers are also experiencing a high demand.
4. Growing Demand for Skilled Professionals
As more SSCs are set up, skilled professionals, especially in leadership positions, would be required for efficient operations. As a result, this will drive requirements for skilled professionals in senior positions. Positions focused on driving business growth like commercial leadership will also be in high demand as companies try to set up a presence in the economy. Professionals with international exposure would also have greater standing for these roles.
5. More Targeted Approach to Hiring
In recent times, with a turbulent market, companies have started to rethink the concept of an ideal candidate. Rather than focusing on skills, most recruiters opt for skill-based hiring decisions. Hence, recruitment processes have also changed with increasing digitisations. Skill-based evaluations and competency-based interviews have also become important tools for candidate assessment.
Recruiters are also leveraging non-traditional means like social media to source candidates. Candidates are expected to be proactive and adaptable, to keep up with the latest advancements. As a result of targeted hiring strategies, DEI efforts have also become a significant success. Companies have also been able to reduce cost-per-hire with targeted hiring strategies.
6. Retention through Talent Development Strategies
While competitive salary packages still hold significant appeal for employees, many have started factoring additional compensations like employee benefits and career development opportunities. Companies providing upskilling opportunities receive a greater precedence from candidates. That’s why working professionals, especially the younger generation are actively seeking roles that offer clear professional advancement and align with their long-term professional goals.
Besides, in addition to brand reputation, upskilling and professional development opportunities also ensure a motivated and adaptable workforce. Hence, businesses can stay ahead of their competitors with a skilled workforce that is committed towards business development.
7. Increased Focus on Hybrid Work Mode
With the rise of remote work, work-life balance expectations have become of increasing importance to Filipino workers. Post-pandemic trends and workflow digitization with collaborative online platforms have led Filipino workers to realize the perks of hybrid and remote work.
Along with greater work-life balance, it was also cost and time-effective as employees saved time and money on everyday commute. The flexible working hours and relaxed environment has also statistically been proven to hike up productivity levels among employees.
With the majority of the workforce in favour of hybrid and remote work models, the Filipino government has also taken measures to encourage companies to adopt these work models. By introducing the Telecommuting Act to safeguard the rights of remote workers and protecting them against workplace discrimination, the Filipino government has shown active efforts in ensuring the well-being of a significant portion of the workforce.
Summing Up
Owing to advances in HR tech and changing labour market expectations, talent management and development strategies are shaping most influential HR trends in the Philippines. Businesses are largely aiming to increase organizational effectivity by ensuring employee satisfaction. Implementing tech solutions is also playing a significant part in boosting operational efficiency.
By keeping up with these HR trends, businesses can ensure business growth while also keeping employee retention rates high. What other Kahanga-Hanga HR trends in the Philippines we should talk about? Let us know in the comment section!
