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Generally Asked Questions
What is the difference between OFFSHORING and OUTSOURCING?
These terms are interchangeably used, especially in the BPO (Business Process Outsourcing) Industry.
“It is possible to outsource locally or offshore and possible to offshore without outsourcing.”
Outsourcing is where a third-party service provider is engaged by a business to provide a service and deliver an outcome under a pre-agreed service level agreement. Generally, costs are linked to a transaction or unit rate agreed upon by both parties. Clients aren’t typically involved in the process of delivering the service.
Offshoring, on the other hand, is where a company moves or relocates parts of its business operations offshore while maintaining direct management and control of its offshore operations. Companies operating offshore without legal business entity and permit can engage in third-party service providers based offshore. These companies can provide the offshore business with facilities, equipment, workforce, and permit to operate under them.
Offshoring services can range from Service Provider delivering 0% interest in the performance of the client’s operations (commonly called “seat lease”) to a 100% responsibility for the performance of the business’ operations (outsourcing). The best combination is a co-managed arrangement, responsibility for the performance of the client’s workforce and operations.
What is BPO?
BPO stands for Business Process Outsourcing. It’s a third-party service provider that offers outsourcing and offshoring arrangement to businesses looking to transfer, execute, or manage business processes and tasks outside their usual business operating locations.
What is KPO?
KPO stands for Knowledge Process Outsourcing. It’s used in offshoring applications and processes that require knowledge of specialist and experts in certain fields. Common industries operating KPO business that offer specialised offers are IT, engineering, medical, legal, and financial sectors.
Is Location Important?
Location is important if your plans to establish an offshore team becomes so successful that you might elect in the future to establish your own business in the Philippines. You need to ensure location is suitable to lift and shift your team and a location that you will benefit commercially from Philippine Government international investment incentives to incorporate. While Shore360 can offer offices in Metro Manila and the Clark Freeport Zone in Central Luzon, Clark offers many advantages not readily available in other regions. The region offers easy access via the Clark International Airport, no traffic congestion and is built to be typhoon proof with world class infrastructure and utility services. The Freeport Zone offers Government backed tax breaks, import and export trading incentives along with efficient access to Government. This along with the extensive labour pool available in the region has Clark growing quickly into a smart and sustainable Airport City and Asia’s next aerotropolis.
Why is it so important for my worker to be office based?
Establishing a team in a central office location offers many advantages from the integrity of commercial grade broadband connectivity to ease of cross training team members to building your culture, work ethic and values. Office based support services including time and attendance monitoring, staff amenities, teleconference and meeting rooms, system and data security can not be maintained on a remote worker basis. Remote workplace arrangements can be established particularly when it is difficult to engage that hard to find talent. Shore360 can assist to reduce the risk and burden of a remote worker arrangement with online payroll administration, provision of computer equipment, furniture and connectivity after conducting a site inspection to ensure the remote workplace is practical and secure.
Is your company equipment current and updated?
The standard computer hardware used by the company is less than 3 years old. It’s configured with INTEL core 3MB processor, 8GB memory, 20” dual screen monitors, webcam, noise-cancelling headset, Windows 10 operating system. Upgrade hardware options are available on specific client requirement for more technical functions and subject to a one off upgrade fee presented on a cost plus basis.
Is the workspace secure?
All Shore360 buildings are secured at entry by Security Guards 24/7 and Access Card Readers to all work areas. There are two types of working space within Shore360 Inc., — open workspace and dedicated rooms. The open space is built using the standard partitioned workstations designed for voice and non-voice service activities while dedicated rooms are designed as per clients’ discretion. All operating environments are considered quarantine areas and facilities like pantries, meeting rooms, and break out areas are provided to minimise distractions and disruptions within the area of productivity.
Are there risks of technical or infrastructure failures?
Our company maintains four 100 mbps-broadband connections with redundancy across multiple service providers. In addition to that, we are located at Philexcel Business Park wherein buildings are provided with back-up power supply via generators to support businesses during any interruption to power. Computers are also equipped with UPS units to further extend the power supply of the devices during power switchover. Note that Clark region operates in a separate power and broadband grid from Manila, and as such, it is less susceptible to outages caused by weather conditions and floods.
What is the recruitment process?
The recruitment process is quite simple and we help you on the entire journey to find and position the right candidate.
- You will be presented with candidates resume plus a pre-qualifying overview to include;
- Current salary, preferred salary and market rate as a base line for you to consider the value proposition
- Reason the candidate is looking for work, our highlight of strength and weakness
- English evaluation, written & spoken
- Attached portfolios, sample work test results if applicable
- Upon selecting finalists we coach you on positioning salary and conduct the negotiation on your behalf, setup start date, work schedule and conditions to take to the employment contract,
- Upon appointment we complete all the clearances including NBI Police check, Health check & Barangay work permits,
- Upon commencement we deliver induction training that includes working with Australian business, standard policies in System Security, Privacy & Confidentiality, behavioural and ethics, and
- Finally we work through your onboarding plans to guide you on strategy and support you with an assigned Client Coach, your go to person for all things Filipino including 180 degree feedback.
Our HR Department is your HR Department and as the legal employer we are disciplined in directing you to conduct performance evaluations, one on one feedback, supporting engagement and retention strategies and embracing your company culture.
What do I need to provide to get recruitment underway?
All you need to do is provide is;
- A recruitment brief with a basic job description and scope of required experience / qualification / personal characteristics,
- A general timeline you would like to work towards, and
- A brief summary of your overall plan.
- Offer feedback on your plan, highlight any challenges,
- Present costs based on your specific requirements, and
- Conduct talent search and put pre-qualified candidates in front of you for final selection.
Provide as much information as you can on your business, company profile and the career opportunities that might come with the job offer. This will help us to position the employment offer in the market place and to attract the best candidates.
It is important that you provide our talent recruitment team with a good briefing on the must have skills and experience along with other features you would like to see in a candidate but are not essential.
Testing and interview are key strategies in finding the right talent for your business and providing feedback to the recruiters will help us fine tune the talent search process.
How long will it take to find my perfect recruit?
Most roles can be filled within days subject to the skills your are looking for and your availability to test, interview and select. More comprehensive and specialist roles typically take longer to source and pre-qualification more time consuming. Once you have provided a requirements brief you will be receive advice on likely sourcing challenges, expected timeframes and interview schedules. It is important that you coordinate to be available to conduct interviews and with a possible start up timeframe in mind as good candidates actively job seeking do not stay on the labor market for long.
Can I test candidates?
Testing where it is practical to test is highly recommended as a means to establish capability and diversity in experience. Simple fact is that even the best candidate will have a skill gap somewhere, particularly when an application is subject to the local standards, regulations and specifications in your home country. Testing should be less about pass or fail and more about identifying skill gaps and how you will handle them onboarding your new worker, coaching, training and upskilling to make the worker fully productive.
How do I interview candidates?
Interviewing a candidate over a teleconference call in another country can be challenging particularly when dealing with cultural differences, the typical subservient nature of the Filipino and without the benefit of face to face contact.
There are a few tips to consider;
- Your recruiter should provide a briefing on the strengths and weakness considered during the pre-qualification process,
- Resume in the Philippines are typically quite basic, use them to appreciate experience and qualification but do not dismiss potential based on the resume alone – be prepared to interview,
- Be prepared to break down the “fear factor” of being interviewed by a foreigner with casual discussion about family, personal likes and hobbies, share your own personality and interests,
- Do not read gaps between jobs or several short jobs as a sign of stability or employability and there are many external circumstances in the Philippines that might influence such a work history,
- Look for character, confidence and personal qualities that will fit with your business.
Be ready to appoint as good candidates actively job seeking do not stay on the labor market for long.
How do I make a job offer when I find the right candidate?
Shore360 does not profit from staff salaries so we are able to act in YOUR interests finding good talent and without any conflict of interest. It is important that you do not present an offer during the interview process or accept an asking salary. Your recruiter will discuss and advise on a responsible and competitive employment offer with you based on a number of factors that you may not be fully aware of that might include;
- Market rate for the role you are considering,
- Entry level role that requires training verses strong experience that will require low supervision,
- Options of salary increase on Regularisation, HMO (private health insurance) tax benefits and other incentives that makes up a competitive salary offer,
- Qualification periods, training investments and subsequent guarantees of minimum employment conditions,
- Previous employment conditions and earning capacity,
- Candidate obligations to notice periods of up to 1 month with current employer,
- Risk of counter offers with current employer.
The final candidate selection and employment offer is at your discretion.
Do I have to pay if I don’t find the right talent?
Up to the point of instructing us to appoint your selected candidate there is no cost and no obligation to proceed, if we cannot deliver suitable candidates for your consideration or a commercial arrangement that offers significant savings against your home country alternative, we do not deserve your business.
On appointment there is a one off Set Up fee payable on commencement that covers the recruitment process and relates sourcing costs, system setup and connectivity, employment costs mandated under Philippine Labor Law requiring work permits, Fit for work Health Check, police clearance and registrations. All new appointments are backed by our 30 day replacement guarantee. This guarantees that if we don’t get it right, we will get it right, and not at your expense. Your success and your employee’s success leads to our success.
Do I have to commit to a minimum term contract?
Most BPO offer a 1 year to 5 year fixed term contract with exit penalties and early termination fees. It is important to check your service provider Service Agreement before committing to any engagement.
Shore360 offers a no fixed term Service Agreement that can be terminated without cause with just 60 days notice. This is a significant industry differentiator offered by Shore360 that places greater value in retaining business by exceeding customer expectation than locking clients into fixed term contracts.
What are the contractual payment terms?
Invoicing is presented to you monthly in advance and payable by the 15th of the service month. Payment terms are designed to ensure funds are available to meet the payroll cycle of your staff and Philippine Labor Code employment conditions.
Shore360 pass on to you the cost of employing your staff at the cost of employment so it is important for staff moral and engagement that payroll is funded on time every time. Failure to meet payment terms could result in suspension of your account until payment is received.
Can I take my staff with me if I terminate the contract?
Most BPO restrict you from taking your staff with you or employing them directly. It is important to check your service provider Service Agreement before committing to any engagement.
Shore360 offers to release staff to you should you elect to incorporate your own business or move to another Service Provider subject to Philippine Labor Code conditions of employment transfer and your staffs willingness to accept a new employment offer. This is a significant industry differentiator offered by Shore360 that places greater value in retaining business by exceeding customer expectation and reach offshoring potential.
If I upgrade hardware do I own it?
Staff Lease fees are inclusive of standard I3 dual screen Computer Hardware, webcam and headsets sufficient for your staff to perform their day to day duties. Some more technical roles require higher end computer hardware and equipment. Based on your specific technical requirement such hardware is made available to you on with a one off upgrade fee. Maintenance, system administration and servicing of the equipment remains the responsibility of your service provider and the hardware remains the property of the service provider.
Do I get the security deposit back?
A Security Deposit is held by the Service Provider to ensure your staff’s salary entitlements are met in the event you get behind on your payments and security for the working Service Agreement. At the end of a contract term or when you release a staff member the security deposit is returned within 30 days of the termination.
Can I get help training my staff?
Our company has the facilities and equipment to make training accessible and easier for both the staff and you, the client. We have teleconference and meeting rooms equipped with computers and devices to help you induct your staff to your business, online or onsite, smoothly. All these facilities are provided and accessible to observe performance, improve operation processes, and coach your staff as needed.
We will monitor your staff’s attendance, behaviour, and adherence to your work schedule and provide you with the corresponding report. Furthermore, we will work with you to conduct performance monitoring and map out working KPIs to establish and improve your staff’s productivity rate.
Do I have to be in the Philippines to train my staff?
Unless you are planning to onboard several staff at the same time and it is beneficial to be in the Philippines to deliver such training it is quite normal to onboard your new worker using teleconference facilities, conduct remote training with your local leadership team and department heads. Committing to the time and cost of face to face training is generally reserved for once you are confident the worker is a good long term proposition and can benefit from more advanced training requirements.
How do I get my company connected to the Philippines?
Your Service Provider will provide all the assistance to connect to your home networks and service applications. Shore360 provides IT System Administration staff to support your local operation 24 hrs per day seven days per week.
You can help your Service Provider ready operating equipment with planned requirements, software applications, email set up and logins / passwords that your staff may require. You will also be asked to provide security options to lock the computer down to your requirement.
Should I bring my staff to my home country for training?
Training and start up required good planning with an understanding of the operating procedures and work instructions your staff will required to get started. Techniques of coaching, buddy system and quality monitoring should be used to establish new start. Once you are confident that you have operations established and your choice in candidates is proving successful you might consider more advanced training face to face. Visiting your new worker in the Philippines or taking the worker back to your home operation for training is a common.
The Philippines Labor Code provides for a training guarantee to be established with the staff that can be levied to ensure your investment in training is secured by employment longevity. Your Service Provider can assist you to plan stat up, induction and training strategies that works for you, your business and the dynamics of your operation.
Are my staff available to me full time?
You are responsible for allocating your new staff with day to day duties, monitor their performance and productivity and provide production supervision. You Account Manager will assist you meeting with you and your team as regularly as you need to get 180 degree feedback and assist with any communication issues.
There are times when you need to release your staff from their duties to participate in Philippine Government mandated activities that include but not limited to:
Shore360 Induction – approx. 4 hours
Occupational Safety & Heath (OSH) training – approx. 4 hours
NBI Police clearance (if not secured prior to commencement)
Month 1, 3 & 5
Performance review and feedback
Refreshed Occupational Safety & Heath (OSH) training – approx. 4 hours
Annual Physical Exam – approx. 4 hours
Evacuation & Emergency procedures Drill – approx. 2 hours
Work Permit & Barangay application – half day
Your Account Manager will coordinate with you well in advance of these activities occurring and work around your production challenges wherever possible.
What are Shore360’s co management HR responsibilities?
Our management and leadership teams provide HR services including onboarding and induction of staff, payroll and administration, dispute resolution, progressive counselling, performance feedback and dismissal processes.
What are the conditions of employment for my leased staff?
Newly employed staff are required to meet a few mandatory requirements in compliance with the company’s policies and the labor and employment code of the Philippines. Here are as follows:
- Meet NBI Police Security Clearance
- Pass a Fit to Work medical examination
- Undergo Shore360 induction and familiarisation program
- Undergo Occupation Safety & Health (OSH) program required by the Department of Labor & Employment (DOLE)
- Sign Shore360 security and confidentiality agreements, Data Security and System Security Policies
Work to Rule as presented in the Shore360 Employee Handbook that covers policies and regulations relating to staff behaviour, code of conduct, security and confidentiality, and other company policies. It will be the basis for the day-to-day staff management of your employees
- Standard 40 hour work week with a mandatory 1 hour unpaid lunch break
Undergo mandatory 6-month probationary employment period after which time the worker must be regularised
Attendance and tardiness will be monitored via an online real time dashboard available to clients to action and hold employees responsible for their work and obligations.
Repetitive offences due to tardiness and other violations will result in dismissal (in consultation with the client).
How do I issue a formal disciplinary action or warning letter?
It is important that you use your Service Provider as the legal employer to issue and formalise any disciplinary action, performance review or warning. This is to ensure that legal requirement are in place should you choose to escalate any action. Shore360 will require you to coordinate a performance review at month 1, 3 and month 5 to formalise the Probationary Employment period.
In the event a disciplinary action is required it is normal practice to document the event, provide the staff with a reasonable time to prepare a right of reply and the outcomes determine how the event is handled. Your Service Provide should provide assistance and advice, HR support and all the guidance required to handle a disciplinary action.
How do I dismiss my worker?
In the event you find it necessary to release a worker your must consult with the Service Provider HR expert to ensure it is handled professionally and in accordance with the Philippine Labor Code. Different conditions and entitlements exist subject to the circumstances for the decision to release and the employment status of the worker. The rights and entitlements of the worker along with the security and confidentiality of your business operation need to be managed.
Your Service Provider will provide you with the guidance to formalise your decision to release a worker and as the legal employer carry out the release of employment to meet all legal and Labor code requirements.