1. Being intoxicated by how cheaply you can hire someone in the Philippines
Some SMEs arrive in the Philippines wide-eyed, convinced they’ve discovered a magical land where “Rockstar VAs” cost $4 an hour. They binge on clickbait, hire the cheapest person they can find, and then wonder why nothing works.
There will always be someone in a developing country willing to take a low-paid job out of necessity but their ability to perform at a high level will be limited to none.
The pattern is predictable: “I only spent $700 a month, so if it doesn’t work, I’ll just shut it down.” And then: “I spent more time teaching them the job than they spent doing the job.”
Pay peanuts, get monkeys.
And then they convince themselves “offshoring doesn’t work,” when the real issue is they were chasing cheap labour instead of accessing the highly skilled Filipino professionals they could never afford in Australia.
The companies that win treat offshore hiring as a way to access exceptional talent not bargain-bin labour.
2. Expecting highly skilled Filipino professionals to sit in traffic for 25 hours a week
Metro Manila traffic isn’t bad. It’s legendary.
Forcing someone to commute 3–5 hours a day is a guaranteed way to repel top talent. High performers simply don’t do it anymore. If you want the best, offer work-from-home. Full stop.
Yet some Australian executives still cling to the belief that “culture only happens in an office.” One attempt to drive two kilometers across Makati during peak hour, 60 minutes later, still stuck behind the same jeepney, and suddenly the penny drops.
3. Lack of executive sponsorship and handing the offshore initiative to middle management
Offshoring only succeeds when senior leadership is visibly behind it.
You’ll face tough questions. You’ll need proper change management. You’ll need to bring your team on the journey.
When CEOs or business owners hand the entire initiative to middle management, it usually dies before it starts. Why?
- CEOs understand the P&L and the value of accessing world-class Filipino talent.
- Middle managers often don’t run a P&L and feel safer hiring someone who sits next to them in Australia.
Expecting middle management to lead an offshore transformation is a step too far. Executive sponsorship isn’t optional, it’s the engine.
4. Thinking all offshore staffing providers are the same
The Philippines has everything from DIY marketplaces to boutique, high-service firms. Some specialise in call centres. Others specialise in technical roles. Some are built for teams of 1–10. Others for 100–300.
Choosing the wrong partner is like hiring a plumber to perform heart surgery. Right industry, wrong specialty.
5. Not investing time to learn Filipino culture
Filipino culture is warm, relationship-driven, respectful, and deeply team-oriented.
Understanding concepts like hiya (modesty), pakikisama (harmony), and indirect communication can transform your leadership.
Leaders who invest in cultural understanding take their team from good to great. Leaders who don’t often leave performance on the table.
6. Using Australian or New Zealand executive thinking to make decisions for your Filipino team
What works in Sydney, Melbourne, Brisbane, or Auckland doesn’t always translate to Manila.
Communication styles differ. Feedback norms differ. Motivations differ. Hierarchy matters.
Applying Western leadership assumptions without adaptation leads to frustration and underperformance. The best leaders manage across cultures with local nuance.
7. Not treating Filipino employees the same as Australian or New Zealand employees
Filipino professionals know instantly when they’re not treated like other team members.
Exclude them from meetings, withhold context, or limit opportunities, and trust evaporates.
Treat them as equal members of the team, with the same expectations, respect, and access, and they will outperform your expectations.
8. Thinking you can hire Filipino employees directly as contractors
Hiring Filipinos as “contractors” to avoid compliance is a legal and ethical minefield.
Some Australians online claim you don’t need to hire Filipinos full-time. This is the offshore equivalent of sham contracting.
What they don’t tell you:
- Under the Philippine Supreme Court’s control test, if you tell a contractor how to do the work, they are legally an employee.
- Employers must pay PhilHealth and other mandated contributions. For example, not paying PhilHealth carries criminal penalties.
- It’s the Philippine equivalent of not paying superannuation.
And recently, an Australian employer was taken to task by Fair Work for non-compliant hiring of Filipino workers.
This isn’t just an ethical issue, it’s now a legal one.
9. Poor remote communication
Remote teams thrive on clarity, rhythm, and structure.
Most offshore failures come from vague instructions, inconsistent feedback, or long stretches of silence.
Filipino professionals value clear expectations, regular check-ins, and psychologically safe communication. When communication is strong, performance soars. When it’s weak, everything falls apart.
10. Not visiting the Philippines and spending time on the ground
One trip to Manila changes everything.
You understand the culture. You understand the talent market. You understand your team’s lived experience. And you finally understand why travelling two kilometers can take two hours.
The truth is, it’s not hard to get this right.
- Pay people well.
- Respect and understand their culture.
- Let them work from home.
Do these three things consistently, and the best and brightest Filipino professionals will want to work for you and stay with you.
