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With BPO centers continuously being established nationwide, it’s apparent that the call center industry has survived the economic recession. Hailed as the sunshine industry of the Philippines, this sector garnered the attention of job-seekers with its glistening compensation offer. But as we speak, does the sun continue to shine on the BPO industry, or is it growing dim in its reputation as a sustainable solution to the country’s underemployment and economic problems?

The Philippines’ BPO industry’s target to generate $12 billion in annual revenue will be pushed to 2011 as a result of the global economic downturn. Not just in the Philippines, but in other places across the globe. Meanwhile, other sources claim that it will remain as strong as the previous year – but only as strong, and a significant increase is unlikely. Either way, the demand for new hires in this field remains quite strong as compared to other industries. A large portion of this is comprised of fresh graduates, undergraduates and employees who wish to shift to another industry. This is due to the minimal requirements such as entry-level English proficiency and no immediate industry specializations required, and the handsome salary range offered. Entry level offers start at P13,000-P16,000 for dayshifts, and a larger sum for those willing to work on the graveyard shift. Aside from the monetary compensation, other benefits are offered by most call centers such as superior health care, performance incentives, and various allowances such as rice stipend, clothing allowance and even gas allowance.

Those working in the industry could attest to these benefits, but also to the fact that there is an equally high level of stress involved especially for those who work the night shifts. But that doesn’t stop fresh graduates, who make up a large percentage of the applicants, from pursuing this job. According to Canadian based research and advisory firm, XMG, almost 55% among fresh graduates would reconsider working for the BPO industry once they have immersed themselves in the job market in order to mitigate financial constraints and be able to support their families. From the time they graduate in March until six months after their graduation, there is a significant increase (increasing to about 67%) in terms of the number of fresh graduate applicants.

But recent studies show that call center agents are now seeking more than monetary compensations such as better schedules that are more sensitive to their other needs such as more time with family and recreational activities outside work. Also, there is the issue about how this industry might be abusive to Filipinos and to the economy in the long run. On a global scale, the BPO industry ranks among the lowest labor costs. Mong Palatino, member of the Philippine Parliament representing the youth sector, says that aside from it being a form of labor exploitation, it is also an inappropriate indicator of the country’s improving performance in the global competitive index. On the other hand, you have Senator Mar Roxas campaigning for the retention of the current BPO salary rates to retain the country’s rates within market rates. The end result of this debate among speculators is yet to be seen. But from the looks of it, the sun still DOES continue to shine, at least for now. ~

References:

  • http://bpo.jobstreet.com.ph/bpo_ind/indnews8.htm
  • http://www.gmanews.tv/story/168363/bpo-workers-seek-better-schedules-not-higher-pay
  • http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200910200546DOWJONESDJONLINE000174_univ.xml

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Do you feel the need to grease the wheels of the current compensation and benefits plan in your business? Entrepreneurs Accounting Academy offers a Compensation & Benefits Seminar on the latest trends in compensation and benefit planning. In this seminar we look at how an organization develops a motivating and rewarding incentive plan. Is your compensation & benefits plan working towards benefiting your own business? Sign up for our seminar and find out.

[...] Is the country’s “Sunshine Industry” still shining? With BPO centers continuously being established nationwide, it’s apparent that the call center industry has survived the economic recession. Hailed as the sunshine industry of the Philippines, this sector garnered the attention of job-seekers with its glistening compensation offer. But as we speak, does the sun continue to shine on the BPO industry, or is it growing dim in its reputation as a sustainable solution to the country’s underemployment and economic problems…>>>READ More [...]

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