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Doing business in The Philippines

Customs for doing busineness in The Philippines

Doing business in the Philippines is the same as doing business in other countries. However, if you want to be an employer of choice and be able to reach your ROI, you must consider some of the cultures and traits Filipinos have.

One of the companies, which effectively decrease their attrition rate, is when they involved the family of their employees. This company installed employee benefits that affect employees’ family. Their number one best seller is the utility refund. One of the traits Filipinos have is the extended family system. This could mean that parents, grandparents, uncles, aunts and so on – are housed in a single residence. And with the size, utilities like water and electricity costs go with it.

Another company considered hiring the entire family – from parents to children to aunts and uncles. As a close family tie, they support each other especially in difficult situations and tasks. All of them will also be ashamed if one commits a mistake. Thinking of quitting is not an easy decision. As a sensitive employer, when things are not what it should be, approaching the father (head of the family) resolves the issue.

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Filipinos also has a lot of holidays due to religion, customs and traditions. Festivals or fiestas are done to honor a town’s or city’s patron saint. Fiestas are also held to commemorate the history or the hero of the place. Filipinos always prepare a budget to have a grandiose celebration as it is believed that the more you celebrate, the bountiful your year would become. Some companies allow their employees go on leave so that they will be with their families. Forced leaves are scheduled on fiesta days for those with earned leaves. Leave schedule should include the post fiesta day to give allowance on hang-overs and clean-up.

When showing some generosity, make sure that it is done to everyone. Filipinos are very sensitive and have the so called crab mentality. They can make co-workers feel not belong to the group, they find ways to humiliate people by talking behind their backs, and easily bullies one when committing a mistake. A very good way is to treat employees (dinner or lunch) outside by batch or by group, in order to make them all feel very important.

All in all, in order to effectively do business in the Philippines, Filipino culture must be closely given importance.

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Active traveller with a love for Asian food and Japanese anime.