Why Consider Starting a Recruitment Agency in the Philippines?

Why Consider Starting a Recruitment Agency in the Philippines?

14 Min Read

Development skills have emerged as one of the most in-demand skills of 2023. Consequently, coders/ developers are the most sought-after resource across industries now. The only way to thrive in such a challenging scenario is by thinking outside the box. In this blog, we are going to take you outside your box of usual modes of business and take you to the Philippines. And in this new world, we will show you how you can outshine all your rivals in the recruitment industry. 

Why the Philippines? 

With ChatGPT and AI, in general, making news every day, it might be difficult to see the emerging talent shortage in the most conventional tech hubs. But all forecasts and research reports are ringing the clarion, warning of the scarce supply of kickass tech developers and coders. In recent years, the Philippines has established itself as a prominent name in the outsourcing industry globally, particularly in Information Technology (IT), Customer Service, and Business Process Outsourcing (BPO).

Here are some reasons why the Philippines is creating a stir in the recruitment industry and why you should seriously consider the Pearl of the Orient to be a viable option for a new home base: 

  • Large Work Troupe

The employment rate of the country as measured in March 2023 is 93.5 percent. The Philippines produces a substantial number of well-educated and skilled graduates every year who join the workforce in specialized industries of IT and CSM, the demand for which is only increasing over time.  This vast talent pool is a great opportunity for recruitment agencies to connect with top talent and link them to several industries globally. 

  • Filipinos Speak English

English is the lingua franca for the Filipinos, particularly the new generation. English is widely spoken in most service industries including technology, health, education, and hospitality making the language barrier a yesteryear problem in outsourcing to foreigners. As a recruitment agency, you can leverage this benefit easily by sourcing fluent-English speaking candidates who are also known for their congeniality from the Philippines. 

  • Lower Costs of Labor

The workforce in the Philippines costs relatively less than in several countries in the West. This is becoming one of the prime reasons why tech leaders are choosing to outsource operations to the Philippines and benefit from this cost difference. A recruitment agency, thus, in the Philippines is your chance at competitive advantage of price while startups that are aiming to lower their operational costs. 

  • Government Support

The government is also on your side if you decide to make the move to the Asian work favorite. The Philippine government has openly claimed support for foreign work opportunities by actively supporting the growth of the BPO industry, and IT industry among other service industries, implementing favorable policies, and providing incentives and investment in infrastructure development. 

  • The Filipino Culture

The culture of the people– strong work ethics, adaptability, and sincerity towards work– are crucial game changers when it comes to working with them. This strong culture of the country translates into work as reliable and efficient, with ease and effective communication making them easy to work with in several industries requiring interpersonal skills and expertise in the subject matter like tech.

  • Growing Trend of Overseas Employment

The prospect of employment abroad is becoming increasingly popular in the Philippines and this is where you come in as a recruitment agency. You are just bridging the gap between the skilled workforce and expansive organizations by bringing the two together. 

Now that we are in agreement about the high work feasibility in the Oriental Pearl, the Philippines, let’s go over some handy tips to make opening a recruitment agency here a smooth, if not the easiest, exercise for you. 

Tips to Make Opening a Recruitment Agency

  • Research and Plan, and Then Research Some More

What sets great leaders apart from regular leaders is their readiness to expend effort on activities that precede the actual business building. Planning and research go a long way when you are deciding to make a new move to a new country. You use this step to understand the compatibility of your business in a new market analyze your combined strengths and predict the opportunities that might come your way in the new market while you also prepare to face the challenges. This is also where you pick your niche, whether it’s software development, cyber security, or data science based on your research so far.  Once you make your pick, you are also able to understand how to meet the needs of your stakeholders. As Al Ries says in 22 immutable laws of branding,” Good things happen when you contract your brand rather than expand it.”, Try to be as specific as you can in the industry you pick. 

  • Know Your Competitors

Congratulations! Opening a recruitment agency in the Philippines is a great idea. And because this idea is so great, it’s highly likely that there are others who have thought of it. Now the good news is that they have already made the effort of doing it first and if you study these other recruitment agencies you can know what works and what, well, is a broken cog in the machinery of setting up a recruitment agency in the Philippines. Top Filipino recruitment agencies like Staffhouse, Manila Recruitment, and ManpowerGroup Philippines are some of the top recruitment agencies you can study to plan a more efficient arrival in the oriental world. 

  • Create Goals for Your Business

This is a paramount step because this is where you distill the learnings from the past two steps and convert them into a  quantifiable game plan for your business. This is where you decide the direction and goals for your recruitment agency and plan the steps and resources you will need to achieve them. 

  • Set Your Business in the Philippines Legally

One nifty tip when treading foreign waters is knowing the laws and regulations of the new land. Now even if the Filipinos are culturally compatible with you, you must never forget that they have different modes of operations and the best way to take advantage of these differences is by knowing them and identifying the regulatory landscape. This also shows respect for their culture when you have to convene with the authorities. Here are a few introductions to get you started. As an agency. You will have to register with the Department of Labor and Employment as a Private Employment Agency (PEA) or Private Recruitment and Placement Agency (PRPA) and foreign companies trying to recruit Filipinos for work overseas must obtain a license from the Philippine Overseas Employment Administration (POEA). The government has also recently passed laws concerning privacy and storage of information that you must be aware of when you are recording your employees’ information here. Moreover, you can avoid unnecessary fines and unpleasant experiences when you clearly see the lines you shouldn’t cross. 

  • Build a Strong Network

Now that you have moved here legally, it’s time to move socially here as well. Get in touch with tech professionals, industry associations, educational institutions, and other stakeholders in your industry. Attend events and hackathons, workshops, and conferences. It’s time to spread your wings and let the new world know that you have arrived. 

  • Collaborate

Collaboration is the new ‘it’ word within the most successful tech companies today. This is your time to explore how you can bring and get value in the industry landscape and start having these conversations with the relevant parties. Go the whole hog on your efforts to know the decision-makers in the industry and understand what they are looking for and then try to provide them with that. Know the gaps between your team and the desired team and organize the requisite training and development. 

  • Run the Extra Lap

It cannot be stressed how paramount the processes at your organization are in determining the success of your venture. Take the extra effort to develop solid screening and recruitment processes at your agency that guarantee efficiency. Put an effective evaluation process consisting of required technical and coding assessments in place. Don’t forget a thorough background check either. Here are a few tips that work for us at Workfall to establish a robust evaluation process. 

  • Become the Experts in Your Industry

A recruitment agency doesn’t have to work in only one tangent. You can choose the space that works for you, and brainstorm with your team on how you can test your wings in the new industry. Offer not just basic recruitment services but expand your services like talent consulting, skills assessment, and career coaching. Also, conduct workshops and panel discussions, host charities, give grants, and become a resounding name in the industry. Use your knowledge and new cultural experience to arrive at new approaches for your current industry and aim to become a knowledge source of the industry. When you can become an advisor in the industry, you can have access to trends and news and valuable resources and opportunities, thereby, ascertaining your success. 

  • Build Your Brand

Now that you have a firm process at your very core, it’s time to pull out all the stops to build a resonating brand in tech minds. Go online and offline with your marketing efforts. Consider the benefits of digital advertising, content marketing, and offline participation in fests, conferences, and seminars. It pays to experiment in marketing as a business organization in today’s business climate. At the same time follow some thumb rules: record and share testimonials, write case studies, and release the news of new partnerships and projects at the organization for perpetual engagement with the audience. 

  • Perform Long Term

The Philippines is now the new home for your recruitment agency and now you must ensure that you are thinking and acting long-term when you operate here. One of the cornerstones of this is delivering consistently. Be aware and adaptive to changing trends and continue to innovate. It always pays to maintain strong relationships with clients because, in time, they come to become your brand’s biggest ambassadors. Regular communication, feedback sessions, and post-placement support can help you identify mistakes (if any, however little) in time and incorporate the changes in your current processes making you a dynamic contender in the industry. 


When you are starting a recruitment agency in the Philippines, make the prudent choice of spending time researching and understanding the business landscape and using this information to choose your area of expertise, whether it is data security, software development, or data science. And then learn further about your competitors and the standard operating procedures. Learn the laws of the new land and ensure you abide by them to avoid unnecessary hassle in the present and the future. Now once you have laid the foundation, it’s time to form wide networks externally and resilient processes internally. The key now is to participate actively in events conferences and activities that enrich the community. All the while, also working towards building streamlined processes that are tested for efficiency. Run the extra lap if you have to to make your agency synonymous with efficiency and trust. And just keep up the practice. 

We hope you found the above blog useful in establishing your own, very new recruitment agency in the Philippines.

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