How Much Should You Pay Your Filipino Remote Workers?
Apr 15, 2025
Hey there! Let’s dive into a pressing question that’s buzzing around business circles and remote working groups in the Philippines: How much should you be paying your Filipino remote workers? While I won’t provide exact figures for specific positions, I will share my philosophy on compensation and how I approach paying my remote team.
The Market-Driven Nature of Salaries
First things first, let’s establish that salaries are always market-driven. They follow the basic rules of economics, specifically supply and demand. If a certain skill or talent is in high supply, the prices typically go down because it’s readily available. Conversely, if the supply is low, prices go up due to scarcity. On the demand side, if demand increases while supply remains constant, that drives prices up.
However, if demand is lower than supply, it leads to an oversupply, which pushes prices down. It’s a classic example of how economics works in the job market.
Some markets are efficient, while others are not. In an efficient market, the price reflects real-time demand and supply. But in an inefficient market, like the job market, someone might be stuck in a role for years without testing their true value. For instance, if a Filipino remote worker has been earning $1,000 a month for three years without applying elsewhere, they may be undervalued without even knowing it.
Understanding Compensation for Filipino Remote Workers
So, how much should you pay your Filipino remote workers? I believe the answer lies in aiming for the equilibrium point on the supply and demand chart. You want to pay enough to attract good talent while ensuring you’re not overpaying. To put it simply, you should strive to pay as high as possible to attract the right level of talent, but also try to keep costs down. The only way to find this balance is through market testing.
Testing the Market
You can gather data on salary ranges for different roles and industries. For instance, during the pandemic, the demand for supply chain managers surged due to port issues, which drove up salaries temporarily. Now, those prices are stabilizing again. It’s essential to keep in mind that salary trends can fluctuate based on market conditions.
Example: Hiring an Executive Assistant
Let’s consider an example of hiring an executive assistant. If you’re recruiting in a specific location, like the Philippines, you’ll want to survey the average salary for a Filipino remote worker. For instance, you might find that the average pay for this role is around $1,200 a month. However, if you've interviewed enough candidates, you might discover that exceptional talent commands a higher salary, say $1,800 to $2,000 a month.
It’s crucial to validate these findings through interviews. The more candidates you assess, the clearer the picture becomes of what constitutes average and exceptional talent.
Sources of Candidates
When sourcing candidates, it’s beneficial to use various channels: job postings, LinkedIn, Facebook groups, and referral networks. Tapping into agencies can also expand your options, and you typically won’t incur a fee until you hire someone.
Real-World Scenarios
Let’s talk about some stories I’ve heard from business owners who claim to find exceptional talent for as low as $400 to $600 a month. Yes, it’s possible to find good candidates at those rates, especially with many career shifters entering the remote job market.
However, the real question is: how long can you keep them at those salaries? Generally, once they realize their worth, they’ll start looking for better offers. In the Philippines, a salary of $400 a month isn’t sustainable for a stable standard of living, and talented individuals will quickly seek higher pay or worse - they may opt to take other jobs on top of yours.
Finding the Equilibrium
To summarize, the equilibrium point for salaries in specialized mid-level to experienced roles typically ranges from $1,200 to $1,800 a month. That’s where Filipino remote workers feel satisfied with their earnings, and employers find value in the talent they’re hiring.
Employers might be willing to pay more if they can’t find the quality of talent they need at these rates. It’s all about the value per talent ratio and how much output you can get from a single hire.
My Approach to Compensation
In my own hiring practices, particularly when recruiting from the Philippines, I adhere to the salary ranges I mentioned earlier. My recruiters are among my highest-value roles, and I compensate them within that $1,200 to $1,800 range.
Ten years ago, the pay scale was different. Back then, my business was not as established, and I couldn’t afford to pay those rates. However, as my business grew, so did my ability to attract better talent by offering competitive salaries.
Final Thoughts
To wrap it up, determining how much to pay your Filipino remote workers is not straightforward. It’s essential to test the market and understand the nuances of supply and demand. Remember, great talent looks different to everyone, and the best way to gauge value is through interviews and data collection.
Ultimately, aim for that sweet spot where you’re paying enough to attract quality talent while ensuring you’re not overspending. The market will guide you, and with some diligence, you’ll find the right balance.
