Linx Team · 3/11/2026
The Philippines has the most versatile talent who are tailor-made for global business. English-speaking, skilled, cost-effective, and culturally aligned with global businesses. Opening an entity in the Philippines cannot happen quickly. It takes months, involves lawyers, paperwork, and local registrations. Like registering with the Securities and Exchange Commission (SEC), obtaining local tax identification numbers, setting up corporate bank accounts, and complying with local labour and tax laws.
The Philippines is facing a big skills gap. This means there are many young and educated people looking for jobs, but companies cannot find enough workers with the specific technical skills they need. About 68% of employers say this is a serious problem, and many workers need new training to keep up with changing job requirements. Because of this, companies take longer to hire, spend more money on recruitment, and often must train employees themselves. The main reasons for this gap are outdated school programs that focus more on theory than practical skills, fast changes in technology, skilled workers moving abroad for better jobs, and a lack of important soft skills like communication and problem-solving.
Most workers in the Philippines are thinking about changing jobs as they look for better pay and benefits. This is mainly because the cost of living is going up and many people are also concerned about their mental well-being. A recent study by Aon shows that 64% of employees are either already looking for a new job or may look for one within the next year. Competition for skilled workers is increasing not just in Manila, but also in cities like Cebu and Davao. Because of this, companies need to offer better salaries and benefits if they want to attract and keep good employees. Rising expenses have also made workers focus more on their financial future. About 65% of employees feel that employers should help them save for retirement or long-term needs, and 58% believe companies should provide financial education. This means businesses should look at the latest market data and understand what employees really need. By offering fair pay, strong benefits, and support for financial well-being, companies can keep their employees happy and reduce the chances of them leaving.
Attrition was expected to reach 20% in 2025, the highest in Southeast Asia. As underemployment drops, more Filipino workers are getting stable, full-time jobs. This enables employees with more power to choose roles they like adds pressure on companies to keep their staff.
Each step can turn your dream hire into a legal headache if not followed. Misclassified contractors, incomplete contracts, missed payroll obligations — all can lead to exorbitant fines, compliance audits, or worse. Organisations need to scale with a smaller team to follow the process or use other options like EOR, etc.