How HR is Evolving in the Philippines

 

I am still working on Chapter 1 of my book, and this article discusses HR Trends in the Philippines. As promised, I will share some excerpts, and I hope to hear your insights on this subject. Please feel free to send me your comments in the comment section.

The pandemic has undoubtedly reshaped the world of work, and HR in the Philippines and Southeast Asia is no exception. As organizations grapple with shifting employee expectations, technological advancements, and new workplace norms, HR's role has become more dynamic than ever.

In this blog, I’d like to share key insights drawn from recent reports and my own observations, highlighting some transformative trends shaping the HR landscape today:

Hybrid Work: The Future or a Passing Trend?

A recent HR Asia report reveals that 51% of companies in the Philippines have resumed on-site work, but 50.5% of HR professionals believe hybrid work is here to stay. It’s a clear sign that flexibility is no longer a perk—it’s becoming an expectation.

Personally, I’ve seen organizations thrive with hybrid setups, especially as employees prioritize work-life balance. But what about your company? Are you embracing flexibility, or do you think on-site work fosters better collaboration?

Talent Retention in the Gig Economy

Retention challenges are mounting as professionals explore freelance gigs and remote opportunities. The Darwinbox Blog highlights that growth opportunities and learning remain the top drivers for retention. I’ve observed this, too—upskilling is the new loyalty currency.

Is your organization investing enough in employee growth to retain talent, or are you seeing the gig economy disrupt your workforce?

Digital Transformation: A Game-Changer for HR

Automation is reshaping HR practices, from payroll to performance management. Tools like those highlighted in the Darwinbox Blog have made HR processes more efficient and freed up time for teams to focus on employee engagement.

I can attest to how these technologies simplify workflows. But I’d love to hear from you: has your organization embraced these tools, or are you still relying on manual processes?

Mental Health and Well-Being: No Longer Optional

As remote work blurs boundaries, burnout is on the rise. Companies are stepping up by introducing wellness programs and mental health leaves. But as the Darwinbox Blog notes, the challenge lies in ensuring these initiatives are accessible and practical.

How does your organization support employee well-being? Is it enough to address the growing demands of a fast-paced workplace?

Diversity, Equity, and Inclusion: Beyond the Buzzword

DEI initiatives are gaining momentum across Southeast Asia, with organizations recognizing their value in fostering innovation and building inclusive cultures. For many, DEI isn’t just a compliance measure—it’s a strategic priority.

How does your workplace promote diversity and inclusion? Do you see it driving meaningful change?

Your Turn to Weigh In!

The HR landscape is evolving rapidly, and these trends are just the tip of the iceberg. I’m curious—how is your organization adapting? Are these trends reshaping your HR strategies, or do other challenges take center stage?

Let’s start a conversation! Share your thoughts in the comments below.

Importance of Understanding the Unique Challenges and Requirements of HR in Social Enterprises

(Here's another excerpt from the book that I am working on.  If you enjoy this article, please share and comment.)

What makes HR in social enterprises uniquely challenging yet profoundly impactful? Unlike traditional corporate environments, social enterprises operate at the intersection of business and community service, requiring HR to balance employee management with a mission to create social impact.

In this excerpt, I explore the distinctive nature of HR in social enterprises, from supporting overlooked roles to fostering a culture of engagement and ownership. My journey from the IT sector to the cooperative movement has shaped my understanding of how HR can drive sustainability and transformation in these organizations.

The Overlooked Backbone: Backend Operations

In my early career, I worked for an IT company where Japanese expatriates highly valued the work of computer engineers. These engineers were often pampered and received all the support they needed to thrive. However, those of us in backend roles—handling operations and logistics—were rarely acknowledged for our contributions. This imbalance left us feeling undervalued despite our crucial role in enabling the engineers’ success.

This experience taught me an important lesson: backend operations are the silent engine that powers the organization. High turnover in these roles disrupts workflows and affects overall performance. When backend employees are supported and recognized, their work directly contributes to the organization’s ability to achieve its goals.

This lesson is even more critical in social enterprises. Recognizing backend staff as strategic partners rather than auxiliary support is key to sustainable growth. By implementing policies and processes that empower these roles, organizations can create a culture of collaboration where every employee feels valued.

Unique Decision-Making Structures in Social Enterprises

When I transitioned to working as an HR consultant for cooperatives, the contrast with corporate structures was stark. In cooperatives, decision-makers are often the members themselves—employees who also own the organization. This dynamic creates a unique HR challenge: balancing the immediate needs of the members with long-term strategic goals.

The frequent turnover of board members through elections adds another layer of complexity. 

HR must continuously educate new decision-makers while ensuring continuity in strategic plans. This requires a level of flexibility and adaptability that goes beyond traditional HR practices.

Moreover, cooperatives' participatory nature fosters a sense of ownership among employees. This involvement leads to higher commitment but also demands that HR design programs that align with members' evolving needs and expectations.

Investing in People: Training for Growth

One standout feature of HR in social enterprises is the emphasis on education and development. Unlike corporations, where training programs must demonstrate a clear return on investment, social enterprises prioritize learning as a pathway to empowerment.

For example, cooperatives often allocate budgets for employee training, focusing on personal growth and financial wellness. This commitment reflects the organization’s mission to uplift not only its employees but also the broader community it serves. In doing so, HR acts as a driver of social impact, equipping employees with the tools they need to thrive professionally and personally.

HR as a Catalyst for Social Impact

The role of HR in social enterprises extends far beyond administrative tasks. It is about fostering a supportive environment where employees feel valued and empowered to contribute to the organization’s mission.

While the general manager typically focuses on operations, HR plays a nurturing role, guiding the organization’s people strategy like a compass. From designing inclusive programs to addressing employee needs, HR ensures that the workforce remains engaged and aligned with the enterprise's social goals.

By integrating processes that promote collaboration, education, and ownership, HR in social enterprises becomes a transformative force—one that bridges the gap between business success and community development.

Conclusion: Transforming Challenges into Opportunities

HR in social enterprises operates in a unique space, balancing the demands of members and employees with the broader mission of social impact. By recognizing the value of overlooked roles, adapting to participatory governance structures, and prioritizing education, HR professionals can transform these challenges into opportunities for growth.

HR in social enterprises is a journey of collaboration and innovation. By fostering a culture that values every contribution, social enterprises can achieve organizational success and meaningful social change.

From Transactions to Transformation – My HR Journey and the Power of Values (an excerpt from Chapter 1)

 As I continue working on my book, I invite you, my readers, to join me on this exciting journey of discovery and transformation. Over the years, I’ve accumulated invaluable lessons from various roles across industries and institutions. These experiences have shaped my belief that human resource management (HR) is more than just a corporate function—it is a mission fueled by values that empower individuals and communities. Today, I’d like to share a glimpse of my journey and the lessons that have led me to this pivotal point, and I’d love to hear your insights and stories as well.

Finding My Path: Early Lessons in Career and Purpose

My professional journey started unexpectedly. I was hired as an executive assistant to a Chinese businessman in the trading industry. Though it was a brief six-month experience, it taught me a valuable lesson: I wasn't cut out for a role that simply involved organizing another person’s life. I craved more—a career where my work directly impacted people's growth and success. This desire led me to transition into HR, and I took my first steps as an assistant in a Japanese IT company.

These early years were eye-opening, filled with roles ranging from recruitment to compensation and benefits and even managing software engineers’ deployments to Japan. I learned the ropes of administrative HR, but my true passion was ignited when I began exploring areas like learning and development. I quickly realized that HR could be a powerful tool for fostering personal and professional growth—not just a transactional function.

Lessons on HR's True Potential

Looking back, I recognize that those formative years of HR were focused on processes and systems. While these are critical components, I began to realize that they often overlooked individuals' deeper, more meaningful needs. In those early stages, HR felt more transactional—a necessary function but one that didn’t always contribute to transformation. That’s when I started to question the very nature of HR and how it could be more aligned with human development.

The Shift to Values-Driven HR

As my career progressed, I became more involved with organizations that championed social development. I began to see HR not just as a function within an organization but as a force capable of driving social change. It was during this phase that I began to understand the true potential of HR—when it's guided by values like empathy, inclusivity, and community empowerment.

I began working with social enterprises, where HR was not only about hiring and firing—it was about nurturing talent, fostering a sense of belonging, and contributing to the greater good of society. This shift was not just a career transition but a personal transformation that made me view HR through a completely different lens.

Your Stories: The Power of Shared Experiences

Now, as I write my book, I want to hear from you. What have been the defining moments in your career that shaped your views on HR and its role in social development? Have you had any transformative experiences in HR that made you rethink its purpose? I invite you to share your stories in the comments below or reach out to me directly.

Join the Conversation

As we continue this journey together, I encourage you to think about how HR has impacted your life. What values do you think HR should embody to truly drive social development? How can HR help empower individuals and communities? Your insights are invaluable, and by sharing them, you’ll help shape the future of this book and inspire others who are navigating similar paths.

Together, let's explore how HR can be more than just a function—it can be a values-driven force that transforms lives and builds stronger, more resilient communities. Your voice is an essential part of this conversation, and I can’t wait to hear what you have to say!

Empowering HR in Social Enterprises: A Journey from Grassroots to Visionary Leadership

In February 2012, I worked as an HR advisor for financial cooperatives. I got deeply involved in the workings of over twenty cooperatives, mentoring their HR staff from the ground up. I noticed a significant difference in HR skills between the corporate world and the credit and savings cooperatives. Many small cooperatives, which had modest beginnings, started with minimal staff and were often made up of volunteers. As a result, the general manager usually ended up handling HR management responsibilities, which led to a misunderstanding of the role of human resources in organizational development.

As these cooperatives grew and sought to formalize HR functions, existing employees were often given HR responsibilities instead of hiring trained professionals. Cooperatives' distinctive culture and ethos posed a challenge for those taking on HR roles. The need for customized HR management practices that align with the cooperative's values became increasingly apparent.

During my master’s degree in Entrepreneurship, focusing on Social Enterprise Development at Ateneo Graduate School of Business, I gained a deeper understanding of cooperatives. Under the guidance of Professor Eduardo Morato, Jr., I learned about the cooperative sector as part of the broader landscape of Social Enterprises in the Philippines. I found that my classmates shared the same intentions and values, all driven by a mission to improve the lives of the communities where their social enterprises operate.

With this understanding, I am developing a book to empower HR practitioners in social enterprises. This book aims to bridge the gap between basic HR requirements and the complex task of shaping and nurturing the culture of a reputable social enterprise. It is a guide for those entering the realm of human capital management within these unique organizations.

To all my dear readers, this book will help you navigate the challenges of HR management in the social enterprise landscape and support your mission of uplifting the lives of your people through practical and values-driven leadership. Join me on this journey towards its development, and please share your thoughts and insights as I post some content on my blog.

When Does Employee Benefits Becomes a Motivator?

Many cooperatives have lower compensations and benefits packages compared to other financial institutions.  So employees seldom feel that they are receiving enough for the work they do.

But considering the work requirements and the culture of cooperatives, there are benefits that are not well communicated to them.  For example, the training and travel opportunities that they get for attending seminars given by federations are not much valued as a benefit.  Other employees in the corporations have to earn their training opportunity and some even have to spend out of their own pocket to be able to improve their competencies. But in the cooperative sector, training are abundant (except for some cases of front liner employees like cashiers, who finds it hard to leave their post).

HR of cooperatives should be able to communicate the monetary equivalent of all the benefits they give to employees, to help their employees realize the value of their work.  As I have read in an article of "employeebenefits.excellenceessentials.com" (written by Lynn Lievonenn),  "Communicating effectively and regularly about the benefits of benefits plans provides a better understanding and higher adoption rate by your employees. It helps build employee engagement and a more loyal workforce that takes less sick time."

By communicating the benefit plans to the employees, they will see that the organization is not neglecting their basic needs and the plan tells them how the organization understands their needs.  If there's no schedule of increases due to the organizational performance, at least the employees would also know that if they work together and try to achieve the targets, there's a big chance that they will reap the fruit of their labor in the future.  Employees need to understand that they are stewards and partners of the cooperative, and valuing their members and being able to serve the members well, will be rewarded too.

Some cooperatives even offer opportunities for the family members of the employees to find employment in the organization.  Some cooperatives allow relatives to work at the same organization, provided that the internal control is not sacrificed.  Some co-ops also provide scholarships for the employees' children, and some give scholarship for the employees as well. 

So my advice to HR of cooperatives is to review what compensation and benefits' packages that you have and try to monetize it.  This will give you an understanding of what you can offer for recruitment and what you can tell your employees should they decide to find greener pastures. 

HR Insights: Succession Planning: Key to Effective Leadership Transition for Cooperatives

In 2014, it was an honor and a privilege to be invited as the guest speaker for the 2nd General Assembly of Bulacan Cooperative Leaders. This event brought together 24 cooperatives across four districts and a Bulacan-based federation. It was fulfilling to share my knowledge and experience in human resource management with such a passionate audience.

The topic I presented this morning was "Succession Planning as Key to Effective Leadership Transition." This is a critical issue for cooperatives, as leadership continuity ensures stability and growth. I could feel the participants’ genuine concern and eagerness to learn as they diligently took notes throughout the session.

Key Questions from the Session

During the discussion, several thought-provoking questions were raised. Here are some of the most notable ones, along with my answers:

1. As a small cooperative (20+ employees), is it okay to assign employees to different functions to test where they fit?

Answer: Absolutely, especially for smaller organizations. When your team is small, multitasking is often unavoidable. The fewer complexities in your processes and the manageable volume of transactions make it feasible to rotate employees through different roles. This approach allows staff to gain on-the-job training, better understand operations, and discover where they excel.

However, there are key considerations to ensure success:

• Document your processes. Create manuals and review policies regularly to maintain control and consistency.
• Monitor performance. Keep track of employees’ progress to ensure their skills align with the cooperative’s needs.
• Focus on long-term growth. These early experiences prepare employees for leadership roles as the cooperative expands.

2. How do we begin implementing succession planning in our cooperative?

Answer: Yes, you can start immediately, but it’s crucial to lay a strong foundation first. Here’s how:

• Update your organizational structure. Identify key positions and review the qualifications and job descriptions for these roles.
• Profile your employees. Understand their current competencies, career aspirations, and future plans.
• Close skill gaps. Create training plans to address gaps between current employee skills and the requirements for critical positions.
• Engage employees. Conduct career conversations to gauge their commitment and aspirations within the cooperative.

Succession planning is a collaborative effort involving the Board of Directors, the CEO/General Manager, and HR personnel. The board and management own the process, while HR handles the implementation.

Profiling Employees: Why It’s Essential

During the session, I noticed that some cooperatives do not yet profile their employees. This is a crucial first step in identifying potential leaders and mapping out development plans. Even without sophisticated software, you can start using Excel.

Here’s a simple list of data points to include in an employee profile sheet:

1. Name
2. Date Hired
3. Department
4. Entry Position
5. Current Position
6. Entry Salary
7. Current Salary
8. Age
9. Gender
10. Civil Status
11. Number of Children
12. SSS/TIN/PhilHealth Numbers
13. Contact Information
14. Address
15. Educational Background
16. Trainings Attended
17. Skills and Competencies
18. Desired Position
19. Certifications
20. Performance Appraisal Records

From this data, you can:

• Identify skill gaps between employees’ current roles and their desired positions.
• Design personalized training and development programs.
• Track progress over time to ensure alignment with the cooperative’s goals.

The Road Ahead

For cooperatives, succession planning isn’t just about preparing for leadership transitions—it’s about securing the future. By laying the groundwork now, you ensure that your organization will thrive for years to come. Start by establishing the basics, like a clear organizational structure, detailed job descriptions, and performance measures.

Remember, succession planning is a journey, not a one-time event. With a proactive approach, even small cooperatives can build a pipeline of future leaders ready to take on greater responsibilities.

Thank you to the Bulacan Cooperative leaders for an engaging and insightful discussion. I hope today’s session inspired you to take the first steps toward effective succession planning. Together, we can ensure the continued success of your cooperatives.

To God be the Glory!