The State of HR

in the Philippines
2018
IN PA RTNERS HIP W ITH:
 PREFACE

This report was created by Sprout Solutions, in partnership with Kalibrr. We

interviewed and surveyed 200 HR professionals in the Philippines to find out
the state of HR in the country.

We covered all the questions that are most relevant to HR professionals so we

can collectively see where the industry is today, and where it is headed.

For feedback, questions, and to request your own physical copy of this report,
email us at info@sprout.ph
 Do you want to know the
biggest pain point of HR in 2018?

Read on and learn more about the major insights of the HR industry in this
‘State of HR 2018’ report by Sprout Solutions, in partnership with Kalibrr.

See where the industry is at today so you can make an even bigger impact for your
organization this year.

3
HR
Department
 How big is your HR Department?

16-20
employees
5.3%
11-15
employees
6%
58% 1-5
employees
21 or more
employees
14.7%

6-10
employees
16%

Most of HR Departments are composed of one to five employees (58%).

Meanwhile, it is notable that there are 14.7% that has 21 and more employees in their HR team.

5
What is the highest rank in your HR Department?

Vice President
10%

Supervisor
14% 48.7% Manager

Head of HR
27.3%

HR Manager is the highest rank in most HR Departments (48.7%).

And, only 10% of the respondents have Vice President in their HR Departments.

6
 Are you planning to grow your team?

No
10%

64.7% Yes

Maybe
25.3%

Most companies are planning to expand their HR Department (64.7%).

Only 10% have no plans of hiring more people for their team this year.

7
 Do you think your HR Department is
being given enough budget by the company?

No
36.7%

63.3% Yes

Most HR professionals feel they are given enough budget by upper management.

8
HR
Facets
 What facet of HR do you like the most?

54% COMPENSATION & BENEFITS

73.3% EMPLOYEE ENGAGEMENT

23.3% HANDLING COMPLAINTS/LAWSUITS/CONDUCT

67.3% LEARNING & DEVELOPMENT

16.7% PAYROLL

35.3% RECRUITMENT

6.7% TIMEKEEPING

Survey shows that Employee Engagement is most enjoyed by HR Professionals

(73.3%). This is closely followed by L&D and Compensation and Benefits.

10
 What HR task takes the most time
in your business operations?
31.3% COMPENSATION & BENEFITS

31.3% EMPLOYEE ENGAGEMENT

38.7% HANDLING COMPLAINTS/LAWSUITS/CONDUCT

16.7% LEARNING & DEVELOPMENT

40.7% PAYROLL

66.7% RECRUITMENT

32.7% TIMEKEEPING

Doing Recruitment consumes most time in HR (66.7%). Other than this, Payroll (40.7%)
and handling complaints and lawsuits (38.7%) are identified as those that take most
hours in HR.
11
 What is your biggest HR Pain Point?

21.3% COMPENSATION & BENEFITS

20.7% EMPLOYEE ENGAGEMENT

60.7% HANDLING COMPLAINTS/LAWSUITS/CONDUCT

14.7% LEARNING & DEVELOPMENT

26.7% PAYROLL

55.3% RECRUITMENT

31.3% TIMEKEEPING

The biggest HR pain point of 2018 is Handling Complaints / Lawsuits. It edged out
Recruitment by 5%, which was last year’s top pain point for HR.

12
 What is the BIGGEST HR problem you
encountered last year?

RECRUITMENT
Recruitment was voted as the #1 pain point for HR in 2017.

With companies looking to hire more and scale their business, recruitment in the
Philippines is a pain point that needs a disruptive solution.

13
 4 being the highest, how happy are you
with your existing HR job?

Survey shows that majority of the

respondents are happy with their current
jobs. Four being the happiest, 48.7%
answered three. And, 34% rated their
level of happiness with four.

1 2 3 4

14
Why are HR professionals satisfied with their
work?

PASSION GROWTH

ORGANIZATIONAL IMMEDIATE
STRUCTURE SUPERVISOR

15
 4 being the highest, how would you
rate your efficiency in performing your HR duties?

Most respondents see themselves

efficient in performing their HR duties.
Four being highest, 68% of the
respondents grade their work efficiency
three.

1 2 3 4

16
HR
Processes
 How do you manage your 201 files?

69.3%
29.3%
MANUALLY AUTOMATED

1.3%
OUTSOURCED

With the advancement of technology, it’s surprising that 69.3% of the respondents
are still managing their 201 files manually. Only 29.3% of companies are using HRIS
for 201 file management.

18
 How do you do your Leave Management?

48.7%
47.3%
MANUALLY AUTOMATED

4%
OUTSOURCED

Almost half of the respondents are still doing their Leave Management manually
(48.7%). On the other hand, 47.3% of them are using HRIS. While there are few who
outsource it (4%).

19
 How do you do your Timekeeping?

48%
45.3%
MANUALLY AUTOMATED

6.7%
OUTSOURCED

Almost half of the respondents are still doing their Leave Management manually
(48.7%). On the other hand, 47.3% of them are using HRIS. While there are few who
outsource it (4%).

20
 What do you use to log in/out?

88.7%
2.7%
BIOMETRIC DEVICE TIME CARD

4% 4.7%
LOG BOOK WEB BUNDY

Majority of the respondents are using biometric devices for clocking in and out of
work (88.7%).

21
 How do you process your payroll?

56.7%
29.3%
MANUALLY AUTOMATED

14%
OUTSOURCED

More than half of the respondents are using a payroll system (56.7%) to run payroll.
Only 29.3% of them are doing it manually. While the remaining 14% of them are
outsourcing their payroll.

22
 How do you track your applicants?

70.7%
26.6%
MANUALLY AUTOMATED

2.7%
OUTSOURCED

Automating applicant management through an Applicant Tracking System isn’t

being utilized by most companies yet. Majority of companies are still tracking their
applicants manually (70.7%).

23
How do you manage employee performance?

87.3%
MANUALLY

12.7%
AUTOMATED

Performance Management is done manually by almost all of the respondents

(87.3%). Only 12.7% of them has an HRIS for it.

24
 In general, how would you want
to do your HR processes?

85.3%
11.3%
MANUALLY AUTOMATED

3.3%
OUTSOURCED

When asked how they want to do their HR processes in general, 85.3% of the
respondents answered they want it to be automated. Only very few of them want it
manual (11.3%) and outsourced (3.3%).

25
Recruitment
What social media platforms do you use for Recruitment?

78% FACEBOOK

72% LINKEDIN

8% INSTAGRAM

8.7% TWITTER

10.7% I DON’T USE SOCIAL MEDIA

Of all social media platforms, Facebook is the most widely used for Recruitment (78%).
This is closely followed by LinkedIn (72%).

27
 What is the MOST EFFECTIVE
social media platform for Recruitment?

54% FACEBOOK

36.7% LINKEDIN

0% INSTAGRAM

0% TWITTER

9.3% I DON’T USE SOCIAL MEDIA

Facebook is not only the most widely used social media platform for Recruitment, it
is also identified to be the most effective (54%). While LinkedIn is at 36.7% ranking
second.

28
Are social media ads effective for Recruitment?

14.7%
85.3%
No

Yes

85.3% of the respondents believe that social media ads are helpful in Recruitment.

29
 What traditional platforms
do you use for Recruitment?

Newspaper Ads
13.3%

2%
56%
TV Ads

Radio Ads
4% TRADITIONAL
PLATFORMS WE DON’T USE
TRADITIONAL PLATFORMS
FOR RECRUITMENT

Flyers / Posters
24.7%

While majority of the respondents are not using traditional platforms for recruitment,
among those few who still use it stated that flyers and posters are what they
commonly use.

30
 Do you use job boards?

32.7%
67.3%
No

Yes

More than half of the HR professionals surveyed stated that they are using Job Boards
like Kalibrr and the like (67.3%).

31
 Do you acquire services from Head Hunter
or Talent Acquisition Agencies/Firms?

50%
No
50% Yes

The HR professionals who answered the survey are fairly divided when asked if they
acquire services from Headhunters or Talent Acquisition Agencies or Firms.

32
 Does your company do Internal Hiring?

No
7.3% 92.7% Yes

Majority of the companies of the respondents allow their employees to apply to

different positions within their company (92.7%).

33
Do you use a Referral Program for Recruitment?

No
22% 78% Yes

Most companies have Referral Programs (78%) to reward and encourage their
employees to refer applicants to their companies.

34
 What has been your most effective
source of candidates?
60% SOCIAL MEDIA PLATFORMS

12% TRADITIONAL PLATFORMS

46.7% JOB BOARDS

31.3% HEADHUNTERS

38% INTERNAL HIRING

60.7% REFERRAL PROGRAM

Social Media Platforms and Referral Programs are basically tied as the best source of
candidates for companies. With social media growing more and more each year, it will
be interesting to see how much more it can impact recruitment in the Philippines.

35
 How many requisitions did you have in 2017?

Most of the HR respondents received 50

and below requisitions last 2017.

The departments that were identified

that needed most hire last year were
Sales, Operations, IT and Accounting.

50 & 51-100 101-500 500 &

below above

36
Quick Stats: Here are the Hire Rates from 2017.

The Fastest Hire The Slowest Hire

44.7% 39.3%
1-7 DAYS 9 WEEKS & ABOVE
36.7% 27.4%
8-14 DAYS 5-8 WEEKS

10.6% 16.7%
15-21 DAYS 3-4 WEEKS

8% 44.7%
22-28 DAYS 1-2 WEEKS

37
 Do you use licensed assessment tools or
exams to screen your applicants?

62%
No
38% Yes

Getting a licensed assessment tool does not seem to be a priority for companies, with
only 38% of the respondents using it for screening their applicants.

38
Learning &
Development
 Does your HR department implement
regular training sessions for your employees?

No
38.7% 61.3% Yes

More than half of the companies of the respondents give importance to holding
regular training for their employees (61.3%).

40
 Do you have enough budget for your
Learning and Development plans and programs?

No
34.7% 65.3% Yes

Survey shows that 65.3% of the HR Professional believe that their companies are
allocating enough budget for their Learning and Development plans and programs.

41
 Do your Learning and Development Programs
help in employee retention?

Maybe
44.7%
48.7% Yes

No
6.7%

About half of the HR Professionals believe that their Learning and Development Pro-
grams contribute to the factors that make their employees stay in their companies
(48.7%). 44.7% answered “Maybe”, and only 6.7% disagreed.

42
Employer
Branding
 Have you executed any Employer Branding
campaigns in the past year?

58%
No
42% Yes

Only 42% of the respondents allotted time and resources for Employer Branding
campaigns last year.

44
 Which department oversees
employer branding initiatives?

16.7% HR

26% MARKETING

24% HR & MARKETING

26.7% WE DON’T DO EMPLOYER BRANDING

6.6% OTHERS

In most companies that did Employer Branding campaigns, their Marketing

Department was most responsible (26%). And in some companies, HR and Marketing
Departments collaborate for Employer Branding (24%).

45
 How much budget do you allot for
Employer Branding this year?

PHP 100,000 PHP 1,000,000

Minimum Budget Spend Maximum Budget Spend

46
 Are you familiar with websites like
GlassDoor and PayScale?

No
47.3% 52.7% Yes

Only about half of the respondents are knowledgeable about websites like GlassDoor
and PayScale where individuals usually leave reviews and evaluate employers /
companies.

47
HR
Growth
How many HR Events did you
attend in 2017?

On average, HR professionals attended

1-5
HR EVENTS

49
 Are you willing to spend on further
HR training and education?

No
2% 98% Yes

Almost all of the HR Professionals surveyed expressed their willingness to pay to

further enhance their HR knowledge and skills (98%).

50
Would you want to be part of an HR community?

No
3.3% 96.7% Yes

Survey shows that 96.7% of the respondents want to be part of a

community for HR Professionals.

51
 What do you think makes
HR a success this 2018?

01 03

Innovation & Engagement &

Technology Collaboration

02 04

Improvement of Empowerment through

Business / Organizational Training & Seminars
Processes

52
 The Evolution of the HR Industry
in the Philippines

The role of HR has grown through the years. More than doing the day-to-day grind of
recruiting, timekeeping and payroll – HR are expected to contribute to the greater good
of the company. Between employee engagement, analytics, and data-driven metrics, HR
professionals now have more to do and a lot more to offer to their companies.

Through technology and constant innovation, you can easily work towards becoming the best
HR you can. Visit www.sprout.ph/blog and https://www.kalibrr.com/blog/ to stay updated
with the latest trends in HR.

53
 KEY TAKEAWAYS

1. The biggest HR pain point in 2018 is handling complaints and

legal issues.
Last year, recruitment was the unanimous choice for the biggest pain point for HR. This 2018, handling complaints
and legal issues edged out recruitment by a few percentage points. Recruitment though is still up high in the biggest
problems that HR face today.

2. 56.7% of companies now use a payroll system for processing

their monthly payroll.
We’ve done a lot of research over the years and found that majority of companies in the Philippines are not using
a payroll system. But this year is the turning point where there are more companies who are using a payroll system
among the respondents.

3. Social Media is the new weapon of choice for Recruiters

HR professionals and recruiters have embraced Facebook (to a lesser extent, Instagram) as a strong source for
recruitment. According to our survey, It has become as effective as referrals when it comes to applicant sourcing.

54
About Kalibrr
Kalibrr is a technology company headquartered in Makati, Philippines. A graduate of Y Combinator (the
world’s most powerful startup incubator), they are the only job-matching company in Southeast Asia powered
by proprietary artificial intelligence—with offices in San Francisco, Metro Manila, and Jakarta.

A preferred partner of established companies, the company’s mission lies in changing the way people work:
by connecting jobseekers to the right career opportunities, and recruiters with the right talent, everyday.

With more than one million users, Kalibrr is well on its way to change more lives in the years to come—
whether it’s through their AI-powered job matching platform, or their newly launched talent curation service,
Kalibrr Pro.

To experience Kalibrr for yourself, visit us at https://www.kalibrr.com/signup to get started.

Our customers include:

About Sprout Solutions
Our HR and payroll platforms fully automate timekeeping and attendance from the finger scanner all the way
down to payout. Sprout is replacing spreadsheets and printed forms with biometrics, single-click processing
and prescriptive analytics in emerging markets. Companies using Sprout Payroll enjoy up to 90% reduction
in payroll processing time. Sprout HR is a powerful HRIS that automates the entire timekeeping process.
We have leave management, advanced HR analytics, digital 201 file management, investments module and
many more.

Want to see how Sprout Solutions can help your company? Book a free demo with us by
shooting an email to info@sprout.ph.

You can also visit our website: www.sprout.ph to learn more.

Our customers include: