In an appearance on One News this week, Mr. Laguesma said the P750 minimum wage hike proposal, which requires at least a P150 raise across all industries, will be difficult for some small businesses, noting that 96% of enterprises are micro and small firms.

“A careful balance is needed because the needs of workers alone are not the only consideration,” he said. “It might be challenging for business owners to comply even if they want to.”

The P150 wage increase proposal is pending in both the Senate and House of Representatives, with Senator Juan Miguel  F. Zubiri and Party-list Rep. Raymond Democrito C. Mendoza, and the Makabayan bloc pushing for national implementation through legislation, bypassing the current regional wage-board system.

Speaking to BusinessWorld, Nagkaisa Labor Coalition Chairman and Federation of Free Workers (FFW) President Jose G. Matula argued that industries can afford the suggested P150 across-the-board increase, which would represent a 24.6% raise from the current highest regional wage of P610 in Metro Manila.

He said higher pay hikes have been implemented via legislation before, citing 1989’s Republic Act No. 6727 or the Wage Rationalization Act, which ordered a P25 hike, equivalent to a 39.06% raise over the P64 national minimum wage. Mr. Matula said that wage hike did not cause companies to close.

Partido Manggagawa said the negative impact of the wage hike on certain businesses will be short term, with businesses expected to thrive in the long run if workers step up their consumption on the back of higher pay.

“In the short term their profit margins might be affected, but still, they can profit,” Partido Manggagawa Chairman Renato Magtubo said in a Viber message. “It’s not a good national policy for the country to maintain depressed wages so that employers continue to profit from workers’ labor.”

In a separate interview, FFW Vice-President Julius H. Cainglet said that the wage hike is a justified response to the government’s failure to control prices of goods and services.

“Workers have long been languishing on poverty wages. For decades since the enactment of the Wage Rationalization Act, the balance has always tilted in favor of employers. This is but one time in the last 35 years that the balance will tilt in favor of workers,” he said. — Jomel R. Paguian

The ongoing PhilCare study, which seeks to come up with a profile of Gen Z — the digital-native cohort born in the late 1990s and early 2000s — found that everyday expenses (44%) and homeownership prospects (39%) were their leading challenges.

The survey also found that Gen Z respondents believe they are adequately prepared for retirement (73%) and travel and leisure (65%).

PhilCare, in a separate Gen Z-focused study led by researcher Fernando dlC. Paragas, said 76% of respondents grapple with the responsibility of sharing their earnings with family.

“Companies looking to recruit and retain young talent need to be creative with their benefits to address this need,” Joseph Agustin L. Tanco, PhilCare president and chief executive officer, said in a statement on Thursday.

“Businesses should acknowledge Gen Z’s financial responsibilities toward their families,” he added. “Offering support beyond the standard paycheck could significantly impact their financial wellness.”

Monico V. Jacob, PhilCare chairman, noted that financial wellness programs could be among the employer offerings to aid in such challenges.

“They may also want to explore flexible work arrangements, including remote work options, to ease the financial burden of commuting and onsite work so employees can save money for more important things like housing,” he said. — Miguel Hanz L. Antivola

You can’t do manpower planning as a standalone program outside of HR planning and the organization’s annual strategic planning exercise, which is a must for every organization. However, it sounds to me that you are making do with what you have in terms of focus and time.

Manpower planning is a critical step in hiring new employees or transferring current ones to more suitable posts so the organization can maximize their contributions. This can’t be done without reference to recruitment, training, compensation, and career development needs.

Without manpower planning, HR may not be in a position to serve the needs of other departments. This means that HR must work closely with others to anticipate their future staffing needs, like nailing down the actual number of workers needed for a particular month of each year, if you want to be specific about it.

OVERSTAFFING, UNDERSTAFFING
No organization can afford to be overstaffed or understaffed. If an organization has more workers than needed, productivity falls — a problem difficult to detect unless management is actively looking.

The same thing can also happen with understaffing, which can cause service or product quality to deteriorate. Understaffing can also increase overtime costs and impose physical strain and stress on overworked employees.

To avoid this, manpower planning must be conducted objectively. HR must be at the forefront of defining worker competencies and the cost of training or other interventions to create the desired result.

For example, in January and February, what do we expect to happen? Off the top of my head — employees may elect to resign or management may initiate temporary rightsizing. Employees, after receiving their yearend bonuses and all their benefits (like exhausting accrued vacation leaves) are prone to moving to other employers.

On the other hand, temporary rightsizing happens when management decides to reduce staffing, including contractuals and agency workers during the first two or three months of the year, when demand for the company’s products or services is low.

Thus, it is a must to raise the following questions:

One, how many employees (both regular and contractual) are needed by the organization to meet its objectives every month, quarterly and on an annual basis?

Two, what jobs will these people need to fill? How many are in operations, sales and marketing, or other departments?

Three, what knowledge, attitudes, skills and habits will new hires and transferees be required to possess?

Four, can we promote people from within rather than hire outsiders? If that’s possible, how do you intend to make it happen?

Five, if you intend on sourcing from a manpower agency, what’s a reasonable ratio to maintain between contractual and regular employees, if only to avoid legal complications?

Six, if you intend to ask agency workers to become part of your regular workforce, how do you intend to assess them?

Seven, what kind of training would you need to offer to minimize the skills gap? If defined, who among your senior employees can train people?

These are some of the basic questions you must explore. The critical questions vary with organizations, depending on their culture, industry positioning, market power and other demands of a competitive environment.

FORECASTING
In conclusion, manpower planning boils down to forecasting, except that it’s not an exact science. Like weather forecasting, it is subject to many uncertainties and inaccuracies. That’s why an HR person needs judgment, supported by input from department managers who know the ins and outs of their staffing requirements.

However, an HR person should be cautious about relying too much on the ideas of these department managers, who could be engaging in empire building. They may hold the mistaken belief that having more employees ensure quality and productivity.

If you want to test this proposition, try computing that department’s turnover rate. You’ll soon discover the truth about every manager’s claims.

Bring Rey Elbo’s leadership program called Superior Subordinate Supervision to your team. For details or other workplace questions, chat with him on Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

DFA officials met their South Korean counterparts Wednesday to tackle overseas Filipino worker (OFW) policy, the DFA said in a statement.

Foreign Affairs Undersecretary Eduardo A. de Vega led a Philippine delegation to Seoul to meet with South Korean Foreign Minister Hong Seok-in.

“I commend the cooperation between the Republic of Korea government and the Philippine Embassy in strengthening relations, especially people-to-people relations,” Mr. de Vega said.

Mr. Hong said migrant workers mitigate the effects of South Korea’s low fertility rate. “It is indispensable and necessary to take care of foreign workers,” he said.

Earlier this month, the Philippine Senate ratified a 2019 social security treaty with South Korea, which allows OFWs in South Korea to refund their contributions to South Korea’s National Pension system after the end of their employment.

The deal also allows OFWs to continue receiving insurance coverage and other social protection benefit where they decide to reside.

More than 67,000 Filipinos in South Korea are expected to benefit from the pact.

Cash remittances from OFWs rose by 3% in October, as migrants sent home more money ahead of the holiday season.

The volume of money was the highest in 10 months or since the $3.16 billion in December 2022.

Envoys from both countries have said they are looking forward to the approval of a free trade agreement (FTA) between the Philippines and South Korea, which the Senate is expected to ratify when it resumes session in January.

Under the free trade deal, South Korea will remove tariffs on about 94.8% of Philippine products, while the Philippines will remove tariffs on 96.5% of South Korean goods.

The Philippines will also enjoy waived tariffs on 1,531 categories of agricultural goods, with 1,417 tariff lines removed upon effectivity of the FTA.

The Philippines is also seeking to export more bananas, processed pineapples, and other fruits to South Korea. — John Victor D. Ordoñez

The Department of Labor and Employment (DoLE) reported that 15 out of the 16 Regional Tripartite Wages and Productivity Boards (RTWPBs) issued new wage orders this year, ensuring salary hikes for minimum wage earners. For organized labor, however, these regional orders are insufficient.

In its year-end briefing this week, the Federation of Free Workers (FFW) called for a review of the regional wage board system of adjusting wages, proposing instead a national body.

“It is necessary to review the mechanism of RTWPBs. One of our proposals is to create a national tripartite wages and productivity board.” FFW President Jose G. Matula said.

“These wage increases… we consider to be a victory for the workers. And yet these wages are not enough to support a family,” he added.

In a separate statement this week, Partido Manggagawa (PM) said that the regional wage hikes are insufficient to offset inflation. “The difference between nominal and real wages is a result of inflation over the years: wage hikes have not kept up with the rise in prices and so workers’ purchasing power has been depleted.”

“The wage orders from the various regional wage boards have fallen short of the wage recovery demand,” PM added.

According to Mr. Matula, the regional wage boards failed to boost productivity and attract investment in the provinces with workers continuing to flock to Metro Manila for higher pay.

Apart from a national wage board, both labor groups are lobbying for a legislated P150 national wage increase for workers in all sectors, measures which are pending in Congress.

“We are still pursuing the P150 across-the-board nationwide wage hike proposal, now pending in both houses [of Congress]. We hope that by early next year, it will be passed into law,” Mr. Matula said.

He added that the P150 wage hike proposal is doable, citing the economy’s improving performance. He expressed doubts whether such an increase will result in the displacement of workers.

FFW said it welcomes DoLE’s decision to join the International Labor Organization’s Global Coalition for Social Justice, which it said commits the department to ensure fair compensation and labor protection.

In a statement, DoLE said: “With its participation, the Philippines will be joined by other governments, workers’ and employers’ organizations, international and regional organizations, non-governmental organizations, and the academe in pushing for better labor and employment conditions.” — Jomel R. Paguian

A wage committee, comprised of government, employers and employee representatives, had previously agreed to increase the daily minimum wage by 2.37%, effective in January, but Prime Minister Srettha Thavisin deemed the hike too low.

Mr. Srettha said the committee would meet in January to seek a further wage hike to be announced in March.

“There is no need to raise wages once a year,” he told reporters.

Mr. Srettha’s ruling Pheu Thai party campaigned on a populist platform with a key plank of raising the daily minimum wage to 400 baht, despite concerns over competitiveness.

“Another investigation covering local wage rates and professional groups will conclude in March…(to determine) areas and groups that can increase wages,” Labor Minister Phipat Ratchakitprakarn told reporters.

The current minimum wage is 328-354 baht ($9.49-$10.24) varying between different parts of the country with the committee agreeing to raise the pay threshold range to 330 baht to 370 baht.

Companies have warned that increasing wages at a time when borrowing costs were increasing and Southeast Asia’s second-largest economy was lagging behind its regional peers could make industries less competitive.

Separately, Thailand’s cabinet approved the central bank’s headline inflation target range of 1% to 3% for 2024, unchanged from this year. The announcement came after Thailand’s headline inflation rate came in at -0.44% in November, the lowest in nearly three years.

Deflationary pressures come from government policies that reduced energy prices and falling meat prices.

The inflation target, which guides monetary policy, is reviewed each year and the range of 1% to 3% is supportive of economic growth, finance ministry spokesman Pornchai Theeravet, who also heads the fiscal policy office, said in a statement.

The cabinet also approved a 3.48-trillion baht draft budget bill for the 2024 fiscal year which will go to parliament next week.

The government approved reduced property fees for another year, with some transfer fees cut to 1% from 2% and some mortgage registration fees to 0.01% from 1%, Mr. Pornchai told reporters.

The reduction will cost the government five billion baht in lost revenue but will boost growth by a further 0.5 percentage point, he said. — Reuters

Like other European countries, Spain has grappled with a cost-of-living crisis in the aftermath of the COVID-19 pandemic, exacerbated by the impact of the war in Ukraine on energy prices.

“This new phase will serve to consolidate the progress achieved over the past five years,” Prime Minister Pedro Sanchez, who won another term as premier in November, told a news conference after the cabinet approved the new package.

Mr. Sanchez said gross domestic product was set to have grown by almost 2.5% this year. The government’s previous GDP growth forecast was for 2.4%.

Pensions will be raised by 3.8% in 2024 to match average inflation over the past year, Mr. Sanchez added.

According to a statement by the Social Security ministry, this increase will carry an estimated cost of 7.3 billion euros. Among the measures were a broadening of subsidies for minors and young people on public transport to all regular users and an extension of the reduction of value-added tax (VAT) for essential items such as fruit and vegetables, pasta, and cooking oils.

A controversial so-called windfall tax for energy companies, which brought in around three billion euros in 2023, has been tweaked to allow companies to partially offset the 1.2% levy if they invest in renewable energy projects.

A similar levy for banks will be unchanged for 2024 following an agreement between Sanchez´ Socialists and his junior coalition partners, the hard-left Sumar party.

Some measures will be phased out. A VAT reduction on energy bills, which reduced the rate to 5% during 2023, will slowly return to 21%, Sanchez said.

The 21% VAT on gas bills will be reinstated in April, according to a Budget Ministry source.

The tax rate on electricity will rise to 10% for 2024, the government said in a statement. — Reuters

Labor Secretary Bienvenido E. Laguesma told reporters that the disposition rate — the percentage of resolved cases — posted by the National Labor Relations Commission (NLRC) was about 90%.

Mr. Laguesma said that among the 207 labor disputes managed by the National Conciliation Mediation Board, only three deteriorated to strike action.

“Generally, we can say that we have industrial peace,” he said.

According to the NLRC accomplishment report as of October, which was released to media this week, the commission and its Regional Arbitration Branches (RABs) resolved 30,974 cases within the process cycle time of six to nine months. This translates to a 95% accomplishment rate, which exceeded the 82% overall target for the year.

Additionally, the report said Project SpeEd (Speedy and Efficient Delivery of Labor Justice), which seeks to efficiently resolve issues put forward by Philippine-based and migrant workers, RABs posted a 99% disposition rate in resolving 23,914 labor cases. The NLRC, on the other hand, reported a rate of 99.7% across 8,609 cases.

Regarding conciliation and mediation of labor disputes, the commission said in its report that it recorded 20,108 settlements as of October involving P2.69 billion, to the benefit of 26,420 workers.

The NLRC, an arm of the Labor department, is a quasi-judicial body tasked with resolving labor and management disputes, including those involving overseas workers.

Referring to the department’s 2023-2028 labor and employment plan, Mr. Laguesma said: “This plan is a tripartite document; it is not a government document alone,” citing DoLE’s intention to continue with the tripartite consultation approach.

He said DoLE received additional funding to implement programs focused on youth employment and additional assistance for vulnerable workers. — Jomel R. Paguian

In a report, the ILO estimates unemployment in 2023 at 6.3%, below last year’s 7.2% and a major rebound from the 10.6% unemployment rate in 2020, when COVID-19 lockdowns left millions without jobs.

Regional joblessness was the lowest since 2014, when unemployment was at 6.0%, according to past ILO reports.

The UN agency said the average unemployment rate in this year’s first three quarters was 6.5%.

“By including the seasonal effects of the regional labor market,” the unemployment rate through 2023 is estimated to be 6.3%, it said.

An economic slowdown in the coming year could spike unemployment, the ILO cautioned, citing forecasts from the International Monetary Fund and the UN’s Economic Commission for Latin America and the Caribbean (ECLAC), which both see growth waning.

ECLAC sees the region’s economies growing just 1.9% next year, below the 2.2% growth forecast for 2023.

“This would mark a second consecutive year of sluggish economic activity for Latin America and the Caribbean, which would resemble the situation that the region experienced in the years prior to the pandemic,” the ILO report said.

In this context, “it is likely” that the regional unemployment rate for 2024 will tick up to between 6.5% and 6.8%, the report said.

If such a slowdown is accompanied by lower inflation, job growth may still continue, the ILO said, a scenario that would favor creation of informal jobs lacking the benefits of formal employment. — Reuters

Management prerogative is not absolute. There are many legal exceptions that limit its use. Even if it’s your prerogative to manage a business, it doesn’t mean you can disregard employee complaints. The best way, therefore, is to find a middle ground. People management is not a zero-sum game where management must win over its employees or vice versa.

There are win-win solutions that can serve the best interests of the organization. So, let’s take a good look at your policy of excluding those with imperfect attendance records. Let me just say from the start that it is a petty issue.

The bottom line is how it would adversely affect an important company event like a Christmas party. It’s the time we celebrate all the good things that happened in our work life. It should not be treated as a platform for bickering, especially if the issue is so low-stakes.

It’s also unfair to those who have logged in one or two reasonable and approved absences due to emergencies, like illness, accidents, or a death in the family. Besides, the logic behind rewarding perfect attendance is flawed. Why recognize employees who are required to be punctual and physically present every single working day?

Thus, there is no need to agonize and waste time explaining a flawed policy to employees. Let me repeat myself: It’s a petty issue that should not consume the time of both labor and management. Imagine a situation where employee discontent destroys the party’s atmosphere, before, during and after the event.

OTHER ISSUES
Yearend parties must offer positive vibes among employees and its management. Extra care should be taken to eliminate or minimize all issues arising from incoherent and illogical policies. The intention is to improve camaraderie and prepare everyone for the New Year. This should be the main focus of management.

Now, to anticipate other issues, explore the following:

One, is the top raffle prize cash or non-cash? Cash prizes are taxable income, unless the company covers it. I prefer the non-cash approach that includes home appliances, electronic devices, grocery baskets, and the like. Television sets, mini-refrigerators or mobile devices represent more tangible memories of the good times for the winners than cash prizes.

To avoid the administrative burden of hauling around heavy and fragile appliances, you can use gift checks to give winners the flexibility in claiming their prizes from the stores. One caveat though. Whether it’s done via a gift certificate or actual appliances, watch out for employees selling their raffle prizes at a discount. They may be applying the proceeds to vices like drugs, drinking, gambling, and womanizing.

Two, would you prevent workers with performance issues from attending the party? No. It’s better to make the party inclusive, regardless of their work performance or status, which includes probationary, project-based and regular workers. What’s the point of discriminating, anyway? It’s the season to be happy, and a year-end gathering should not be cause for creating friction among your workers.

Even those who have been penalized with reprimands or suspensions for violating company policy must be included in the party as well.

Three, what’s your view on suppliers donating raffle prizes? This arrangement could raise integrity issues. Therefore, establish a policy that purchasing executives and their workers should donate their gifts to a prize pool to be raffled off during the party. Be sure to consider high-ranking officials as well.

Security guards must play an active role in enforcing this policy to keep recipients from struggling over accepting or rejecting gifts. Consider that suppliers can always deliver the goods to locations nominated by the intended recipient. Still, it’s better to have a policy than having no policy at all.

Four, how do you view companies soliciting prizes from suppliers? Don’t do it. It’s a pitiful sight for companies to act like beggars. Every organization must have a budget for year-end merry-making. Regardless of size, a company must ensure it prepares a little something for the workers, including the giving away of modest prizes not sourced from suppliers, unless the prizes are voluntarily given.

Five, how about companies soliciting contributions from workers? My answer to that is the same to my answer to number four above: Don’t.

In conclusion, you must realize that in planning a year-end party, consider all the possible irritants that could affect employee morale. If you’re unsure of what to do next year, conduct a simple, anonymous survey to determine the best approach to organizing the Christmas party. Do this five months before the scheduled party.

Bring Rey Elbo’s popular leadership program, “Superior Subordinate Supervision,” to your organization. And find out the best way to prevent recurring issues. Chat with him on Facebook, LinkedIn, or X (Twitter), e-mail elbonomics@gmail.com or via https://reyelbo.com

Speaking to reporters this week, Assistant Secretary Jerome A. Alcantara said the ratification of the ILO Convention 190 of 2019 requires parties to take concrete action against workplace harassment and violence, which covers those working overseas.

“It does not stop with just signing a treaty, and releasing press releases. What is crucial are the accompanying concrete action we need to take because of its ratification,” he said.

The Senate unanimously ratified the convention on Monday, making the Philippines the first Asian country to affirm the treaty.

Mr. Alcantara told BusinessWorld that bilateral agreements should be updated to bring them in compliance with the convention, starting with agreements due to expire next year.

“One of the main pillars of the mandate of DMW is to negotiate better conditions for our workers; and in those negotiations, we are bound by our international obligations,” he said.

Labor groups also expressed their support for the ratification, urging the government to align labor policy with ILO norms.

The Trade Union Congress of the Philippines President and Party-list Representative Raymond Democrito C. Mendoza, who filed a resolution calling for the ratification of the ILO convention, urged government, businesses, and civil society to do their part in ensuring its effective implementation. 

“This international agreement is a testament to the commitment of the global community to eradicate violence and harassment in all its forms, emphasizing the importance of fostering environments that prioritize the well-being and dignity of all workers,” he said in a statement.

“The ratification of C190 comes at a crucial time when our workers continue to be subjected to various forms of violence and harassment, including physical violence, psychological violence, sexual abuse and economic violence committed by various state and non-state offenders,” the Public Services Labor Independent Confederation said in a statement. — Jomel R. Paguian

“From Jan. 8^th, you should expect longer labor disputes,” GDL head Claus Weselsky was quoted as saying by Augsburger Allgemeine newspaper.

The union held a 24-hour strike last week, its last strike of the year, after negotiations with Deutsche Bahn broke off at the end of November.

The GDL is demanding a reduction in working hours from 38 to 35 hours per week for shift workers, as well as an increase of 555 euros per month and a one-off inflation compensation bonus of 3,000 euros.

Deutsche Bahn rejects the demanded reduction in working hours due to a labor shortage and has offered an 11% increase in wages and salaries for a collective agreement term of 32 months.

The GDL rejected the offer. Mr. Weselsky said the union would strike in moderation and was not planning an indefinite strike. “We don’t have to go on strike indefinitely to bring the rail system to a standstill,” he added. — Reuters

Sooner or later, you’ll be in legal trouble with labor authorities, who may receive complaints from “employees” working under your roof. This is possible when your management team ignores the so-called “four-fold test” of establishing the existence of an employer-employee relationship.

The four criteria of the test are as follows: One, selection and engagement of employees. Two, payment of their wages and benefits. Three, the power of dismissal. And four, the power to control the employee’s conduct.

Even if you have a decent number of regular workers but they’re outnumbered by atypical workers like those provided by manpower agencies and cooperatives, it could raise possible issues in the near future. That’s why you should exercise extreme caution in maintaining a workforce composed of non-regular employees.

If I were to have my way, I’d aim for a ratio of 80-20 (regular workforce vs. temps), which will likely be sufficient to persuade labor authorities, tripartite bodies or industry labor-management councils that you’re not abusing the temp system.

WASTAGE INDEX
Any organization fully relying on temps does not understand employee motivation. Who would want to continue working for a manpower agency or a cooperative for only the most basic wages and benefits and limited career opportunities?

You must consider the experience accumulated by temps that is wasted if and when they decide to move to some other employer who can give them much better compensation and career opportunities. This will be made clear when you compute the company’s wastage index, a measure of how well you maintain temps and other contractual workers.

Let’s say you have 500 temps at the start of the year. By Dec. 31, 60 temps have resigned voluntarily and have been honorably discharged, for various reasons. This translates to a 12% turnover rate, sometimes called the wastage index — representing the loss of experienced and talented people.

Why do we consider it wastage? Take the issue of training.  How can your work teams function effectively if the temps continually come and go? Imagine the hassle. This may not be a big issue in the case of simple manual operations in organizations like fast food restaurants and department stores.

But then, how about other businesses like high-technology manufacturing or service jobs requiring special skills for customer relations?

Imagine the investment in training that you had to make. This problem is magnified with the continued inflow of new temps requiring fresh training, even if you classify this as an employment cost and not an investment. Double check whether the cost does not in any way wipe out the advantages of hiring temps.

Another reason to be dubious about an all-temp company is that customer service is no simple task that can be left to workers whose continued presence is dependent on your contract with the service provider. Another issue is their motivation to perform their duties when their minds are focused on finding better employment.

Therefore, your best approach is to periodically assess your options when relying on temps.

LABOR SUPPLY
Unemployment in this country is high even in normal economic situations. That means an abundance of people looking for jobs. Many are eager to be employed full time but only a handful are chosen because the majority lack the skills required for the tasks at hand.

Looking for the best person for the job is a difficult challenge for many organizations. This can be easily demonstrated by thousands of job ads posted on social and print media every day.

Even if you’re focused on maintaining only temps for your organization, there will come a time that you’ll need the right number of people who would want to be hired directly  rather than by manpower agencies, cooperatives or other third-party service providers. If that happens, what would you do?

Bring Rey Elbo’s leadership program on “Superior Subordinate Supervision” to your management team. Or chat your workplace issues via Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

TAIPEI — Artificial intelligence (AI) could help hospitals manage the shortage of nurses in the Philippines, a hospital industry executive said.

“Temporarily, that may be one of the solutions for the lack of nurses. (If) you don’t have night staff to provide information, for instance, you can use AI,” Jose Rene D. de Grano, president of the Private Hospitals Association of the Philippines, Inc., told BusinessWorld on the sidelines of the Healthcare+ Expo in Taipei.

Mr. De Grano said he toured a hospital in Taiwan with one nurse attending to up to 20 patients, who usually require nurse staffing of three to five, with the help of AI.

Possible AI applications include answering inquiries and dispensing medication, he said. The real-time monitoring of multiple patients can also be performed with the aid of Radio Frequency Identification systems.

At the Expo, ASUSTek Computer, Inc. (ASUSTek) demonstrated its health tracker watch, known as VivoWatch, which it plans to distribute more extensively across global markets next year as a tool to help healthcare professionals track patient activity and make diagnoses, according to ASUSTek Associate Vice-President for Product Marketing Pei-Wen Hsu.

“Before, when you go to the doctors, doctors always ask you, oh, do you sleep well? Did you take medicine? But if you have this data that can connect through the cloud, the doctor can check the data and to compare it to the chart at the hospital,” Ms. Hsu told BusinessWorld, also on the sidelines of the expo.

The new VivoWatch integrates electrocardiogram (ECG) sensors to help diagnose certain heart conditions, as well as Photoplethysmography (PPG), which detects blood volume changes.

ASUSTek is also promoting its speech recognition transcription application, Agility, to help healthcare professionals record checkups with patients faster.

“For example, I’m the patient and the doctor has a question for me. The speech recognition function can record what I’m saying,” Ms. Hsu said.

Citing the Taiwan government’s New Southbound Policy, ASUSTek is considering future market expansion in the Philippines, according to Ms. Hsu.

NURSE MIGRATION
Philippine hospitals have now fully accepted the inevitability of nurse migration, Mr. De Grano said.

“That is the thinking of the new generation of nurses… they still want to go out,” he said in Filipino. “We’re not against that because it will improve our economy… and the quality of life of our nurses.”

Jose P. Santiago, Jr., incoming president of the Philippine Hospital Association, said nurses are also attracted to countries with strong education systems for the sake of their children.

“I have interviewed several nurses, mostly single mothers… they want to leave because they want to provide a better education to their kids. They also consider their families when they migrate,” he told BusinessWorld separately.

Mr. Santiago said that a healthy working environment, subsidized post-graduate schooling, competitive salary, incentives, and training could help nurses stay in the Philippines.

Mr. De Grano noted that Cambridge-based Occupational English Test is set to conduct free English proficiency training in hospitals and medical schools especially for nurses who want to work in the United Kingdom.

“We agreed… we’ll (pursue such arrangements) in order to persuade our nurses to stay a while before they leave the country,” he said.

The Commission on Higher Education last year lifted the moratorium on universities and colleges seeking to open new nursing programs.

“We’re now really looking forward for better supply of nurses,” Mr. Santiago said.

I have encountered two such problem employees in companies I worked for, except that they were motivated for the wrong reasons. I suspect they were also trying to test my patience. In Company A, we were in charge of publishing a two-page weekly newsletter which needed to come out early Monday. The mandate was clear.

The newsletter had to be put together no matter what, even to the extent of working weekends. No ifs, no buts. When I moved to Company B, I was assigned a much more difficult task — to publish a biweekly eight-page newsletter that must also come out Mondays.

This task came on top of everything else that was assigned to me. I handled labor relations, managed employee discipline, did public relations work, coordinated with the labor union, organized sports and socials, handled corporate social responsibility, managed employee benefits, and many others.

In publishing the newsletters, we did research, conducted interviews, took photographs, wrote and edited the content, laid out the articles, and coordinated with the printer. Unfortunately, the burden was not shared by my two publication assistants in companies A and B.

Or at least, that’s how I felt at the time. They resorted to emergency leaves and sick leaves for dubious reasons, most of the time without informing me directly and instead relaying the message through our department secretaries.

This was when mobile phones were not yet in wide use. When deadlines approached, my work schedule was thrown into disarray. I also had to work during weekends without extra pay because I was salaried.

FIVE OPTIONS
I communicated this problem to my bosses, whose advice was similar to the position taken by your HR manager: grin and bear it. Somehow, I managed the situation by spending long hours at work, in the process proving that I could do it without their assistance. I turned the tables by outsourcing the task to on-call writers, cartoonists and layout artists, even spending my own money to do so.

It was all worth it. My assistants started to feel insecure about their jobs.

I’m not sure if such a solution works for you. Our situations may vary and require different approaches. If that’s the case, let me share with you the following options:

One, establish a pattern of emergency leaves. “Emergency leaves” mean any absence from work without prior management approval. This includes any situation like a broken-down vehicle of an employee, fire in the neighborhood, assisting a family member who is hospitalized — in other words, events that are difficult to predict, including illnesses that require sick leave.

The challenge is to determine the reasonableness of these leaves in a given year.

Two, calculate the damage or losses. This includes the amount of overtime pay for other employees who are required to pitch in, professional fees of subcontractors and other related expenses, like the use of utilities (electricity, etc.) in the office. That’s not all. You may have to include other nonquantifiable expenses or any amount that you are forced to absorb.

Three, engage a physician to do house calls. The doctor may be assigned by a Health Maintenance Organization (HMO). This face-to-face visit could pose additional cost for the organization and can only be used sparingly depending on the situation or the employee’s notoriety. If medically feasible, “arrange” with the HMO to bring a sick worker to a hospital to deliver a message.

Four, connect habitual sick leaves with the medical exam. Include a provision in the HMO contract giving the latter the right to conduct physical check-ups on those accumulating excessive sick leaves. This may discourage people from calling in sick if they know that the HMO will conduct a mandatory check-up and withhold medical benefits to those who refuse.

Last, conduct regular engagement dialogues. Maintaining open communication is very important. However, you must come prepared with data on the frequency of the worker’s emergency leaves and how they are adversely affecting company operations. Explain the issue and secure a commitment from the concerned employee.

If the problem persists, disallow the “emergency” or “sick” leave as a last resort. If you’ve reached this stage, monitor the employee’s reaction and prepare for a more difficult situation. When you do this, be honest with yourself. Who knows? You might be part of the problem.

Bring Rey Elbo’s leadership program called Superior Subordinate Supervision to your management team. Chat with him on Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

The Violence Against Women and Children (VAWC) law, or Republic Act 9242, grants female employees 10 days’ leave after having experienced physical, sexual, psychological, or economic violence.

Bureau of Working Conditions Director Alvin B. Curada said in an online seminar on Wednesday that employers refusing to grant VAWC leave could potentially face criminal, administrative, and civil action.

Refusal to grant the 10-day leave to victims carries penalties under both the Labor Code and Civil Service Rules and Regulations in the case of public organizations, he said.

Mr. Curada said female employees may apply for multiple VAWC leaves in a year if they face continuous violence. He also emphasized that female employees, regardless of their length of service, are entitled to file for VAWC leave.

He clarified that VAWC leave is not convertible to cash if left unused.

Mr. Curada said VAWC victims must submit a barangay certification to accompany any leave applications. He said employers may not demand additional requirements not indicated in the law.

Victims may also apply for a barangay protection order which “will prohibit the offenders from committing the acts by preventing them from being around the women victims and their children.” He added that the victims may also seek the help of the courts in issuing temporary and permanent protection orders against offenders.

Mr. Curada said that aside from physical and sexual violence, the law also contemplates psychological forms of abuse — or acts that cause mental or emotional suffering, including public humiliation, repeated verbal abuse, and threat of physical harm. Economic violence, meanwhile, happens when “another person prevents a woman from working and exercising her profession, and unjustly controls her property and money.” — Jomel R. Paguian

Almost all religions preach compassion. But then, when confronted with an actual situation, most people would agonize about the right approach.

Psychologists have spent decades of research to understand the meaning of compassion and human suffering.

Emma Seppala, a director at The Center for Compassion and Altruism Research and Education at Stanford Medical School, says “human suffering is often accompanied by beautiful acts of compassion by others wishing to relieve it.” This is seen in the case of volunteers serving food at homeless shelters or in people who stop on the highway in the rain to help someone with a broken-down vehicle.

To some, acts of compassion (or empathy) are difficult to understand except to explain it as “an automatic mirroring of another’s emotion.” Therefore, if a stranger can volunteer to help another stranger in need, what more a person be-longing to the same organization? This is where HR should perform a delicate balancing act.

This requires a fair and impersonal judgment of what is right, considering the interests of the offender-employee and those of the whole organization.

ACT OF KINDNESS

If “survival of the fittest” describes people in a rat race, a contrary maxim calls for “survival of the kindest,” which generates a lot of positive vibes in the workplace. Being kind is the most welcome as it generates tons of acceptance.

As I’ve said in my previous articles, people management is an act of kindness. It automatically expires the moment workers show that they don’t deserve such kindness from management. It is in this light that HR professionals must consider the needs of both employees and management.

This is the time when HR must decide on the best solution. HR may be misunderstood. But as long as the decision is right and fair, all you have to do is to explain it gently to those who may feel unhappy about your decision. Take it from the department manager.

He has already recommended that the penalty be reduced to a one-week suspension instead of dismissal. Without your knowing for sure, other employees may support such an approach. It becomes a matter of writing a balanced decision that does not set a bad precedent. In writing such a decision, the HR manager must consider the following:

One, emphasize due process. This requires giving the employee both the substantive and procedural aspects of due process. Give the worker an ample chance and opportunity to explain his side of the story.

Two, state the decision finding the worker to have committed the offense. Cite the specific provision of the Code of Conduct and other pertinent provisions of the Labor Code. Explain how management came to the collective decision. Take note of a Supreme Court decision finding that dismissal is too harsh.

Three, explain that the penalty is reduced to suspension. The HR manager may increase the recommended suspension from five days to 10 days or even more. Also, the suspension must reflect a pro-rata deduction to 13th month pay and other cash allowances and benefits when they become due.

Four, include a disclaimer against setting precedent. Emphasize it clearly that future offenders may not use such case if it favors them. Do this even if you treat the case with utmost confidentiality and you promise to treat each case differently.

COMPASSIONATE JUSTICE

I’ve implemented compassionate justice in a number of cases brought before me in the past. I was happy to note that the experience taught me many valuable lessons. Compassion can go a long way in reforming employees. Many of them have succeeded in changing their image before management. They’ve become loyal to the organization.

In conclusion, however, be careful in making a decision like this even in the name of compassionate justice. Chances are, some management people, including CEOs, will object to your leniency. If that happens, you have no choice but to implement what they want — but not before explaining everything in this article.

Bring Rey Elbo’s leadership program called Superior Subordinate Supervision to your organization. For details or your workplace questions, chat with him via Facebook, LinkedIn, X (Twitter) or via https://reyelbo.com 

The Philippines needs to initiate a comprehensive labor development program to address the increasing demand for artificial intelligence (AI) skills, according to experts.

“The impact of AI on the labor force is very uneven,” Rene E. Ofreneo, a professor at the University of the Philippines Diliman School of Labor and Industrial Relations, said in a phone interview with BusinessWorld on Monday.

“To benefit from AI, the modernization and upgrading of different sectors need to be simultaneous,” he added, noting that varying incremental changes can already be observed in the local economy.

He noted that these effects are more prominent in business process outsourcing (BPO), services, and manufacturing, compared to its potential impact in agriculture and other overlooked sectors that can benefit from such AI-driven efficiency boosts.

In a separate phone interview, Sergio R. Ortiz-Luis, Jr., president of the Employers Confederation of the Philippines, said that it will take the country about two years to identify a more significant impact on the labor market from AI.

“Everybody and every field will be affected,” he added, noting that employers and job seekers need to adapt to the challenges and opportunities presented by continuous technological advances.

“It’s also a significant challenge for policymakers to address AI for the overall economy,” Mr. Ofreneo said, emphasizing the need to expand its opportunities beyond those only in “the high end of the labor market,” where he cited 82% of the workforce as classified under formal employment.

“Everybody has to adjust, but how can you make AI work in the service of everybody?” he added. “To have an AI revolution, an economic revolution is also needed.”

Data and analytics firm GlobalData said that generative AI job posts spiked in the third quarter due to business competition in the digital landscape, with medium- and long-term talent plans in development for adaptability.

GlobalData noted AI augmentations in data science, code development, machine learning, and cybersecurity among global businesses.

Analytics from the employment-focused social media platform LinkedIn showed a 2.4 times increase in job posts mentioning AI in Southeast Asian markets from two years ago, with a 1.7 times growth in applications versus those that do not mention it.

It observed that 76% of Filipino professionals expect a significant change in their jobs next year driven by AI, with 55% already using generative AI, citing efficiency and productivity benefits.

It added that 55% believe the technology will create more job opportunities outside the metropolitan area due to its capacity for active upskilling and remote work.

However, the Asian Development Bank said in a July report that 20% of Philippine workers face a “high risk of losing their jobs” due to automation.

“The opportunities have everything to do with productivity and managing information,” David R. Hardoon, chief executive officer of Aboitiz Data Innovation Pte. Ltd., said during a fireside chat at the BusinessWorld Forecast 2024 economic forum last week.

“What we should be worried about is another person with the knowledge and skill set we don’t have,” he added.

Mr. Ortiz-Luis urged companies to prepare for losses and savings from tech adaptation, alongside the labor force opening themselves to tech-empowered opportunities. 

“Employers must train to reskill, while job seekers and employees need to adapt to maintain their availability for the job market,” he said. “Know what areas they can skill themselves in.” 

However, Mr. Ofreneo noted the uneven development of technologies across industries parallel to its wavering opportunities for the workforce. 

Displacements and employee downsizing must be addressed immediately because many are already being left behind, he said, observing its impact on the BPO industry alone.

Flatter organizational structures are deemed necessary to unleash the potential of the two generations as they rise to leadership roles, they said at a panel discussion at the BusinessWorld Forecast 2024 economic forum on Wednesday.

“A command and control structure does not work anymore,” Carlos Ramon C. Aboitiz, chief corporate services officer at Aboitiz Power Corp., said. “We need to allow (Gen Zs and millennials) to articulate their own vision, and kill policies that no longer make sense.”

They said openness, empathy, agility, balance, and purpose are critical values to nurture in the workplace.

“They need opportunities to pilot programs and proofs-of-concept, which the company can do small-scale. Give them that safe space to fail,” said Jericho P. Go, senior vice-president and business unit general manager at Robinsons Land Corp.

“Crazy ideas may not be crazy after all. Voice it, put it in a business plan, and justify its worth in the company,” he added, noting the importance of embedding lifelong learning in company initiatives.

Isabelle Gotianun Yap, executive director and vice-president at East West Banking Corp., said Gen Zs and millennials comprise 81.3% of the company’s workforce, with about 60% holding managerial roles.

Mr. Aboitiz noted that the average age of employees in his company is 36, with about 70% consisting of Gen Zs and millennials.

“They have the ability to quickly harness technology and new ways of working,” Ms. Yap said. “With our young leaders who had a familiarity with low-code, no-code process automation, we were able to quickly start a community of practice with them, optimizing technologies and systems for the company.”

Additionally, Ms. Yap noted the need to continuously improve learning programs and tools for sustainability, alongside providing more and better quality feedback because the two worker cohorts value it.

“We should not overplay these generational changes. There is nothing to be fearful of,” Mr. Aboitiz said. “(Current) leaders need to overcome (these fears).”

“Understand how our behaviors and expectations are different, and design an environment to allow for the coming together of these differences,” he added.

“Communication is key. Listen to understand,” Mr. Go said. “They will maximize the use of tech to increase efficiency and improve sustainability.”

“Don’t be afraid to share your vision and higher purpose for the company. Once it is adopted by the next generation, it will light a fire in them.” — Miguel Hanz L. Antivola

In a briefing at an information technology (IT) summit for schools and companies, CHED Chairman J. Prospero E. de Vera III said the commission aims to integrate AI into the learning process by training teachers and students, even those who are not in technology-related degree programs.

“Faculty members must understand what AI is all about, how it impacts the degree program that they are teaching and enable to embed it in the learning process across disciplines,” Mr. De Vera said, citing that even humanities and social sciences courses can benefit from such technology.

East West International Educational Specialist President and CEO Dennis Franco M. Layug said AI is being used in various industries such as marketing, health, and architecture.

“Academics will have to embrace industry demand and start producing graduates equipped with these skills,” he added.

Aileen Judan-Jiao, president and general manager of IBM Philippines, which offers AI learning opportunities, highlighted the significance of technological skills in the current job market.

“There is no better time to join the tech industry than now. IT skills (are not only for) the BPO (business process outsourcing) industry, but every industry; everything is technology-induced,” she said.

Employment platform LinkedIn reported on Tuesday that in Southeast Asia, job posts mentioning AI or Generative AI have doubled from 2021 to 2023. Applications for these jobs have grown 1.7 times in the region over the last two years.

LinkedIn emphasized the importance of soft skills as AI automates tasks. It said Philippine professionals believe skills like problem-solving, creativity, and communication will become more critical as AI tools are more broadly adopted in the workplace.

At the briefing, Alfredo Antonio I. Ayala of the Private Sector Advisory Council said in order to upskill the workforce, there needs to be an “accelerated level of government and industry collaboration.”

CHED’s Mr. De Vera said, “There is a bigger imperative for the industry and government to work together,” and noted the commission’s collaboration with various technology companies to offer learning opportunities for students.

Silicon Valley HQ CEO Christopher Peralta said the private sector aims to bring to the Philippines “the implementation, the tools that are happening in Silicon Valley or Singapore or Australia.”

“If we can do that, we empower students and the next generations.” — Jomel R. Paguian

You may have evidence to suspect that the CEO is creating conditions to foster creative conflict. Just the same, it should remain a suspicion since creating conflict is not the ideal approach for choosing candidates. Being suspicious could be a personal asset. But to be suspicious all the time, and without facts, is a liability.

Besides, sales performance should not be the only basis for choosing a replacement CEO; there are many other factors to consider. For one, general-manager skills like human resources, finance, operations, and public relations, among others. It is possible to imagine a manager who excels at sales but struggles with people management.

We must also talk about consistent work performance over the past five years if we are to consider promoting an executive to CEO.

And that’s not all. Creating conditions for so-called “creative conflict” could backfire, complicating the relationship among the candidates and poor performance all around. At the extreme, the candidates could sabotage one another to the detriment of the organization.

The most important thing to understand is whether the current CEO has a mandate from the owners or the board to undertake such a process in finding a replacement. In general, the only thing we know for certain is that the CEO is the conduit between the board of directors and the executives and their workers.

We’re not even sure if the CEO has the mandate to choose a replacement from among the leading internal candidates. What if the board decides to hire someone from outside the organization?

OFFICE POLITICS
Workplace conflict is everywhere. Many of them are deliberate rather than accidental creations. Sometimes, workplace conflict happens due to office politics or opposing management styles. If this happens, the result can be disastrous for the organization.

Any person, regardless of rank, can play office politics if he uses his discretionary powers to promote a personal agenda. His motive may include revenge, amassing power and authority, building an empire and beating rivals to key promotions, among others.

However, there’s also a positive side to office politics, which may cause workers to enhance their image or personal brand, making them appear more professional.

Experts have noted that to have successful careers, managers need to be good politicians, but not to the extent of violating the company’s ethical, moral, and legal standards. Just the same, the question remains: should the CEO create conflict to identify a successor, assuming that he’s authorized to do that?

Such an approach is dangerous. Office politics does more harm than good. It’s more of a problem than a solution for any organization. It consumes a lot of energy, disrupts the candidates’ work, and damages their relationships with colleagues in the long term. Because of political infighting, corporate goals and sales targets may fall by the wayside as candidates are diverted from what needs to be done.

Further, office politics reduces trust and diminishes respect. In a tense political environment, it also affects the well-being of non-management workers and undermines active collaboration between and among functional units.

In real terms, how would you assess whether office politics is good or bad?  Let’s answer this question by raising more questions:

One, does it result in the greatest good for the greatest number of people inside an organization?  If not, then it’s clearly bad politics.

Two, does it violate any person’s rights, as in when rivals tap each others’ telephones to obtain embarrassing evidence?  If yes, then it’s bad politics.

Three, does it treat all persons fairly? Do rules and penalties apply to all regardless of their personal circumstances?  If not, then it’s bad politics.

Playing office politics is inevitable for everyone.  You cannot ignore it and hope it dies a natural death. There’s only one option for you — manage it well.

Bring Rey Elbo’s leadership program called “Superior Subordinate Supervision” to your management. Chat with him on Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

In a 2023 report on the global state of student success and engagement, Instructure found that Filipino respondents are increasingly taking a skills-based approach to gaining credentials, citing the desire to expand their areas of expertise (77%), advance their careers (68%), take advantage of flexible programs (59%), and be ready for new opportunities (56%).

It noted that respondents are considering certificates (43%) and apprenticeships (39%) as a means of equipping themselves for their planned profession.

“Students today recognize that the modern workforce requires a diverse and rapidly adaptable skill set,” Harrison Kelly, Asia-Pacific managing director at Instructure, said in a virtual briefing on Thursday.

“As a result, they are opting for more flexible, skills-focused learning avenues that offer quicker routes to employment and a broader range of career opportunities,” he added.

“Institutions will have to look at a fixed yet agile way to draw on these ever-evolving demands,” he added, noting that the current job market stresses skills-based hiring over traditional degree-based qualifications.

Ryan Lufkin, vice-president for global strategy at Instructure, noted that edtech systems can serve as demonstrable proof of workplace skills.

“Even degree programs are breaking down into component skills,” he said. This can help showcase attractive qualities to employers even for candidates that have not earned degrees.

Mr. Lufkin also noted the role of artificial intelligence (AI) in fueling productivity, creativity, and critical thinking among learner.

The report indicated that 46% of Filipino students attend institutions have introduced rules governing generative AI use, while 28% said their institutions’ guidelines were strict.

It found that generative AI tools helped students with creating class content (62%), research and writing (56%), and personalize their learning (53%). AI chatbot ChatGPT was described as helpful in research and writing (83%), test preparation (52%), and learning foreign languages (47%).

“We need to be providing tutorials and guidelines on educator expectations,” Mr. Lufkin said.

“Institutions should be saying how these tools work to understand when and how they are being misused.”

“We shouldn’t be creating a tiered system, a digital divide with AI. We need an equitable approach,” he added, noting the paid releases of ChatGPT having access to significantly more datasets than the free version.

Instructure’s 2023 State of Student Success and Engagement in Higher Education report is on its  its fourth year, covering 17 countries, including 571 students, administrators, and faculty from the Philippines. — Miguel Hanz  L. Antivola

“The region’s developing economies are home to over 580 million young people ages 15–29 years. Their energy, skills, and expertise are needed to power growth and innovation as economies in the region transform, grow older, and seek to address climate change,” the ADB said in a report.

“Yet over 80% of youth who work in the region do so informally, and one in four young workers are moderately or extremely poor. Working youth are often stuck in precarious, low-quality, low-paid jobs,” it added.

In many Asian countries,  youth unemployment rate is two to three times more than the adult rate, it said.

Better job matching “reduces the time needed for job seekers to identify vacancies and for employers to fill them. It also improves the quality of the match so that young people obtain jobs suited to their capabilities and aspirations, and employers acquire the right talent,” the ADB said.

The matching process can include job preparation and search, as well as skills training, social networking, and post-placement activities.

“When job matching is linked to other services, this tends to help youth with their nonlinear transitions, reach disadvantaged youth cohorts, and strengthen matches for improved job quality,” it said.

Digital technology will also help further access, such as through online job-matching platforms.

“Young job seekers gain remote and convenient access to a larger and more relevant pool of jobs. Complementary support can easily be linked. Employers benefit from reaching more prospective talent as well as other recruitment services. Providers leverage scalability,” it said. — Luisa Maria Jacinta C. Jocson

You’re right! There’s more to doing a comparative approach in analyzing and ranking employee performance. You must do a ranking to gain insights on which worker to promote when the time comes.

Basically, there are five approaches. One is the ranking system you were referring to, where you list the individual workers’ appraisal ratings from highest to lowest.

Next is forced distribution. This is also known as grading on a curve. The normal curve in statistics places the majority (around 70%) of employees in the middle, or the average group. Generally, this is the group that meets the company’s expectations.

The rest are distributed into either side of curve. The extreme left consists of the 5% that “need much improvement” and the 10% that “need slight improvement.” The extreme right represents the 5% who are deemed “outstanding” and the 10% that “exceed expectations.”

The third approach is called the paired comparison. This requires every line leader, supervisor and manager to compare every employee with every other employee in the work group. An employee is given a score of one point every time another worker considers him as the top performer in the group.

Once all the pairs have been compared, the concerned manager computes the number of times each employee receives a favorable score and totals them all. This becomes the employee’s performance score. After that, they are ranked accordingly. Paired comparison eliminates the managers’ subjectivity and their tendency to play it safe by giving an average rating.

BALANCED SCORECARD
The fourth approach is called the 360-degree feedback system, where an employee receives confidential evaluations of their work performance anonymously from the people who work around them. They include the boss, colleagues and direct reports. For efficiency, this is better done through an online form and measured on a scale similar to the forced distribution system.

This allows the person being rated to accomplish a self-rating questionnaire similar to what the boss, colleagues and direct reports are using.

The last performance approach is the so-called balanced scorecard, a performance management system that focuses on translating the company’s objectives into a set of performance metrics that include financial analysis (profitability and return on investment), customer interaction, internal business analysis and the learning perspective.

I would normally recommend the balanced scorecard as it connects an individual performance to corporate results. In other words, you cannot have people being given an excellent performance rating when the company is losing money. It may sound unfair, but that’s the way it goes. All employee accomplishments must be translated to financial performance.

Somehow, the unfairness can be tempered by evaluating, first and foremost the performance of division and department heads. Mr. Erick Reyes, a human resource (HR) management professional with more than 40 years of experience, says that “individual performance emanates from the corporate results.”

For example, if a Department ABC has exceeded the expectations of top management, a certain percentage is given as a merit increase to those people with an above average rating. On the other hand, if Department XYZ received a poor rating, then it’s almost impossible for anyone in that department to be given even a small monetary or non-monetary recognition.

Of course, that’s assuming that all goals are specifically defined by individual and department Key Performance Areas or Key Performance Indices.

FINANCIAL REWARD
As I’ve said earlier, this becomes necessary if we’re talking of financial reward like merit increases, profit-sharing bonuses or performance bonuses, except the mandated 13^th month pay which must be given to all workers regardless of their employment status. Also, there’s a caveat to this — not all jobs can be measured easily.

For a department like HR, measurable objectives can be set for how it manages the recruitment cycle, prevents conflict with the labor union, reduces employee grievances, maintains a suggestion system, administers town hall meetings, conducts the annual morale survey, keeps turnover rates down, etc.

It’s also a good idea for HR to take the lead in implementing a continuous improvement program such as Lean HR, which applies kaizen and lean thinking to the HR function.

In conclusion, nothing is more convincing than creating an approach that suits the company’s culture. Just the same, don’t be afraid to change the system. Even major organizations don’t copy everything from model companies. They adjust things to achieve an ideal process.

Bring Rey Elbo’s leadership program called “Superior Subordinate Supervision” to your management. Chat with him on Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

Tourism Secretary Maria Esperanza Christina G. Frasco said at the World Travel Market Ministers’ Summit in London on Monday that the DoT is working to raise the quality of tourism education.

“Our government has applied a trifocal approach towards tourism education from basic education to technical vocational to higher education… The Marcos administration envisions the Philippines as a center for excellence in terms of tourism training,” Ms. Frasco said during a panel discussion.

She said that the DoT is constantly consulting with companies to ensure that the needs of the industry are met by schools training their future workers.

The department cited its partnership with the Commission on Higher Education, with the DoT helping review and update of the curriculum of tourism and hospitality courses. — Justine Irish D. Tabile

The 2023 PhilCare Wellness Index, which studied Gen Z — the digital-native cohort born in the late 1990s and early 2000s, also found other priorities like travel opportunities and job satisfaction as top considerations when assessing a workplace.

Also prominent on their priority list are monetary reward, purpose, personal growth, non-monetary benefits, professional growth, and flexible work arrangements, according to the survey findings.

“The individuality comes out in this generation,” Monico V. Jacob, PhilCare chairman, said at a briefing on Wednesday, noting that the findings can serve as a guide to company transformation.

“They have a strong sense of self. They know what they want and really work hard for it,” Fernando dlC. Paragas, PhilCare Wellness Index lead researcher, said.

“This generation isn’t just working to live; they’re working to thrive,” he added.

Gen Z’s preferences for work arrangements included starting their own business, flexible work schedules, and having multiple sources of income, the study noted.

“The days of long, grueling commutes are becoming less appealing,” said Enrique T. Ona, Jr., PhilCare Wellness Index chairman. “The findings hint that Gen Z’s place a significant value on work-life balance and the desire for quality of life and wellness.”

“This might be one of the reasons work-from-home setup has become increasingly popular,” he added.

“Gen Z’s are not just looking for a job,” Mr. Paragas said. “They are seeking a meaningful career that resonates with their personal and professional goals.” — Miguel Hanz L. Antivola

No plan or program will work without the enlightened participation of the CEO and senior management team. This is especially true as an organization begins to professionalize its structure. I’m not sure if I understand you. Do you mean that I come up with the VMV myself?

Of course I can do it, except that it may not reflect the aspirations, character and ideals of your management. The process must have the active participation of those sitting at the top of your organization’s pyramid.

The HR department must take the lead in concretizing the VMV with the help of external technical experts. Their job is to facilitate the creation of VMV statements providing direction and developing a bone structure that must be completed with flesh and blood content by top management.

ELEMENTS
The job of an external technical expert or consultant is to facilitate the creation of VMV statements. It’s wrong for the expert consultant, no matter how good they are, to formulate the VMV out of thin air. Everything, from the content and process, must be driven by the creativity, enthusiasm and expertise of the senior management team, which knows the ins and outs of the industry.

The CEO and his team must consider the three vital elements in corporate visioning that are necessary for the organization to beat the competition and sustain it for the long term. These must be done in three days, with one day each dedicated to orientation and team building, problem-solving and decision-making.

One, shared corporate vision. The CEO and his team must work together so the details of their corporate vision are articulated and clarified. It’s like capturing a bolt of lightning and transforming it into a powerful sentence to reflect a shared mutual commitment.

One good example of a corporate vision is that of Globe Telecom: “We see a Philippines where families’ dreams come true, businesses flourish, and the nation is admired.” The Walt Disney Co.’s vision statement is short and simple: “To make people happy.”

Two, shared mission statement. This is a statement of purpose designed to inspire all employees to commit to the company’s mission. Writing a mission statement involves answering four questions: Who are we? What do we do? For whom do we do it? Why do we do it?

One good example of a mission statement that answers all these four questions can be found in Meralco’s mission: “To provide our customers the best-value energy solutions — reliably, affordably, superbly, and sustainably.”

Three, shared corporate values. An organization united by a shared vision and mission can’t do without shared values that guide not only the way each individual employee performs their task but how they treat one another. A model example of value statements is that of the Bank of the Philippine Islands (BPI):

“We value integrity, professionalism, and loyalty. We promote a culture of mutual respect, meritocracy, performance, and teamwork. We strive to be the employer of choice among Philippine financial institutions.”

NEW BEGINNING
The contributions of each and every management participant in the three-day visioning process must be emphasized. The quickest way to do this is to create an atmosphere of a new beginning to help clarify any confusion or uncertainty. It’s important to realize, though, that such new beginnings don’t happen overnight.

Your organization must energetically create the right environment for it. This can be done through a broad range of activities that include a half-day corporate-wide seminar for all workers, overhauling the performance appraisal system to emphasize meritocracy over seniority, promoting regular engagement dialogues, or creating and organizing training programs designed to close the gaps.

The company website and annual reports must be overhauled to incorporate the VMV. In addition, aim to host a monthly town hall meeting with the CEO where prizes are handed out to those who can answer questions on the company’s VMV and where two or three employees give brief talks on how they’ve successfully practiced it in their work.

There will be resistance to change. But when it happens, the issue must be dealt with by management. If left unaddressed or mishandled, it will create organizational inertia that will disrupt the change process.

Chat your questions with Rey Elbo on Facebook, LinkedIn, X or e-mail elbonomics@gmail.com or via https://reyelbo.com

“[TESDA] only has four industry boards now, I don’t think that’s enough,” Pasig City Rep. Roman T. Romulo, who heads the House basic education and culture panel, told BusinessWorld in a phone interview.

TESDA in August established industry boards in partnership with various private sector representatives to assess whether a student’s tech-voc skills will be enough to meet these sectors’ demands.

The industry boards include the Philippine Constructors Association, Inc. for the construction sector, the Tourism Industry Board Foundation, Inc. for the tourism sector, the IT & Business Process Association of the Philippines for the information and communications technology sector, and the Philippine Cacao Industry Association for the cacao sub-sector under agriculture.

TESDA also formed an industry board with the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. to represent the manufacturing, semiconductor, and electronics sub-sector.

“The first step that [TESDA] should do is to form more industry boards,” Mr. Romulo said in Filipino. “The one who dictates what skills [a learner] needs is the industry.”

Under the proposed Education Pathways Act, a student who finishes Grade 10 can either proceed to senior high school to pursue a college degree or take a tech-voc course. The measure hurdled the House basic education and culture panel last month.

“If a learner, after completion of Grade 10, wishes to take the tech-voc track … we will have an upgraded TESDA that will take care of the curriculum together with industry partners,” Mr. Romulo told the committee on Oct. 18.

The measure “not only offers choice but also the promise of a more inclusive, flexible, and dynamic educational system that empowers every student, regardless of their background or circumstances,” Federation of Free Workers President Jose Sonny G. Matula said in a Viber message.

The unnumbered substitute bill also requires TESDA to facilitate on-the-job training and apprenticeship programs to be offered by industry stakeholders.

A student may also opt for the ladderized education program, where those who have completed a TESDA course and are already working are eligible to enroll in a college or university degree program.   

Mr. Matula added that the bill should include courses in labor rights for both senior high and tech-voc students for improved awareness among workers.

Under the current law, Republic Act No. 10533 or the Enhanced Basic Education Act of 2013, it takes two more years of basic education — Grades 11 and 12 — before a student can earn a high school diploma. At the time, the Philippines was the only Asian country and one of three in the world with a 10-year basic education program.

TESDA recorded a total of 1.26 million enrollees and 1.23 million graduates last year, according to its 2022 annual report.

Terry L. Ridon, a former youth party-list lawmaker and currently the convenor of think tank InfraWatch PH, said the TESDA has yet to be fully developed to handle huge numbers of students taking the tech-voc route.

“The success of this measure is dependent on an all-rounded development of TESDA and its various private partners,” Mr. Ridon said in a Viber message. “Unfortunately, the tech-voc sector has not reached this level of development yet.” — Beatriz Marie D. Cruz

The reports on Tuesday pose a threat to efforts by the US central bank to bring inflation to its 2% target. Fed officials started a two-day policy meeting on Tuesday. The US central bank is expected to leave interest rates unchanged but maintain its hawkish bias at the conclusion of that meeting as a recent spike in US Treasury yields and stock market sell-off have tightened financial conditions.

“Those wage increases are likely to keep inflation running above target while higher house prices could lead to a pick-up in shelter inflation,” said Andrew Hollenhorst, chief US economist at Citigroup in New York. “For now the Fed will remain on-hold, but the evident upside risk to inflation means Chair (Jerome) Powell and committee will keep potential further rate hikes on the table.”

The Employment Cost Index (ECI), the broadest measure of labor costs, rose 1.1% last quarter after increasing 1.0% in the April-June period, the Labor department’s Bureau of Labor Statistics reported. Economists polled by Reuters had forecast the ECI would rise 1.0%.

Labor costs increased 4.3% on a year-on-year basis, the smallest gain since the fourth quarter of 2021, after advancing by 4.5% in the second quarter. Growth in annual compensation is gradually slowing after peaking at 5.1% last year, in line with some easing in labor market conditions. It, however, remains well above the pre-pandemic pace.

The rise in compensation helps to explain the surge in consumer spending last quarter, which contributed to the fastest economic growth rate in nearly two years.

The ECI is widely viewed by policymakers and economists as one of the better measures of labor market slack and a predictor of core inflation because it adjusts for composition and job-quality changes. Since March 2022, the Fed has raised its policy rate by 525 basis points to the current 5.25%-5.50% range.

Wages increased 1.2% in the third quarter after climbing 1.0% in the prior three months. They were up 4.6% on a year-on-year basis after advancing by the same margin in the second quarter. Strong wage growth is being driven by worker shortages that still persist in some services industries.

September’s job openings data on Wednesday will shed light on the state of demand for labor.

Though consumers continue to worry about the economy’s outlook, more are planning vacations over the next six months and are not contemplating scaling back in a major way on purchases of motor vehicles and other big-ticket items, according to a survey from the Conference Board on Tuesday.

Their concerns about the economy center around the violence in the Middle East as well as domestic politics, likely reflecting the protracted battle to elect a speaker in the US House of Representatives.

The Conference Board’s so-called labor market differential, derived from data on respondents’ views on whether jobs are plentiful or hard to get, rose to 26.3 from 25.5 in September. This measure correlates to the unemployment rate from the Labor department. Overall, the consumer confidence index dropped moderately to 102.6 this month from 104.3 in September.

“The US consumer is in okay financial shape,” said Bill Adams, chief economist at Comerica Bank in Dallas. “For well-off Americans, inflation is a source of frustration but not enough to force cutbacks in overall spending.”

Stocks on Wall Street were trading lower. The dollar gained versus a basket of currencies. US Treasury prices rose.

CONSUMER CONFIDENCE EBBS
The compensation report showed private-sector wages gained 1.1% after rising 1.0% in the April-June quarter. They advanced 4.5% on a year-on-year basis. There were notable increase in wages in the financial activities and education and health services sectors. But wage growth slowed in the leisure and hospitality industry, which had experienced worker shortages.

Manufacturing also reported a moderation in wage gains.

State and local government wages shot up 1.8% after increasing 0.8% in the prior quarter. They were driven by rises in education and health services as well as public administration. State and local government wages increased 4.8% on a year-on-year basis, the most since the government started tracking the series in 2001.

Inflation-adjusted wages for all workers rose 0.9% on a year-on-year basis after jumping 1.7% in the second quarter. While slowing, wages should continue to underpin spending.

Benefits rose 0.9% last quarter after climbing by the same margin in the April-June period. They increased 4.1% on a year-on-year basis.

Economists expected the higher wages and benefits to pressure corporate profits, with Nationwide chief economist Kathy Bostjancic noting that “some companies are losing a bit of their pricing power.”

A third report from the Federal Housing Finance Agency showed house prices increased 0.6% in August, driven by an acute shortage of previously owned homes. House prices rose 0.8% in July. While lofty house prices are boosting household wealth, they could keep inflation elevated in the near-term.

In the 12 months through August, house prices accelerated 5.6% after advancing 4.6% in July. With the rate on the popular fixed 30-year mortgage near 8%, some economists see limited scope for house prices to keep rising, which would result in rents contributing less to inflation.

Higher rents were the major drivers of inflation in September after cooling somewhat in prior months.

Even as house prices continue to march higher, there are signs that shelter inflation could moderate next year.

A fourth report from the Commerce department’s Census Bureau showed the rental vacancy rate jumped 6.6% in the third quarter, the highest since the first quarter of 2021, from 6.3% in the April-June period.

“We still think it is likely that the surge in mortgage rates will slow the rise in prices in the secondary market going forward,” said Lou Crandall, chief economist at Wrightson ICAP in New York. — Reuters

I’ve already written no less than ten articles on this subject since 1993 when I started writing in this space. But of course, that was more than 30 years ago. If we’re limiting ourselves to job interviews as a tiebreaker, then that will be a breeze, except that I’d like to disabuse your mind that it’s not the only thing that matters when deciding to hire a manager. There are a lot more. And I’ve already covered them in the past.

After conducting thousands of job interviews to identify the best candidates, I learned that there have been no major changes in the way we ask questions to job applicants. So much has been written in the past and many of them can be searched, complete with all the killer answers to all difficult questions out there.

You may agree or disagree with those questions. Some of them may not be important for you and your organization. Some may work for you but not for other recruiters. Just the same, the final judgment on what the important interview questions are will be yours alone. If you decide to adopt those questions, it would take some time before you realize that you’ve become successful in the recruitment process.

TEN KILLER QUESTIONS
The world we live in is not based on logic and justice, no matter how we aspire for it. As a consequence, our world is not as good as it could be. We talk about things based on our direct experience, whether good or bad. Let’s start by asking one simple question: how do you stay on the positive side of the street?

Unfortunately, the answer to that question is not simple. There are thousands of inspiring articles and books about career development and success, all trying to dissect all workplace issues that have become important to people and organizations. And for that matter, I consulted the past presidents of People Management Association of the Philippines (PMAP). I believe their insights, tactics and strategies on people management should help us understand the importance of a job interview.

The following questions are easy to understand and it’s up to you to copy them all or adjust according to your taste. They may not always work. But they will be the closest you can get to the “magic wand” of our respondents.

1. Ernesto Espinosa, 2002 PMAP president: “If the person who hurt you the most showed up at your door, what will you do or tell him/her?” This is a question of testing the candidate’s maturity, humility, sense of pride, forgiveness and respect for others.

2. Ellen Fullido, 2022 PMAP president: “What was the most selfless thing that you did as a manager for your organization that has gone through a crisis situation?” The key word is “selfless.” In this materialistic world, how does one distinguish himself from the rest?

3. Edgardo Soriano, 1995 PMAP president: “In settling a crisis situation that needs a win-win result, what are your non-negotiables?” The question is focused on defining the result most acceptable to all parties without undermining one’s personal values.

4. Ramon Segismundo, 2017 PMAP president: “Are you willing to try out the job for one day? After that, we’ll decide if you’re the right person for the job.” This is a modified version of an assessment center often used as a trade test. The logic is easy to understand. On-the-job performance (even if for just one day) is the key determinant.

5. Rene Gener, 2000 PMAP president: “What will be the biggest game-changer that you will bring to the business? One that I have not heard or seen before? Why?” This question tries to determine the creativity and innovativeness of the applicant.

6. Barbie Atienza, 1998 PMAP president: “Aside from financial issues, what are the top three factors that you’ll consider when cutting expenses and manpower?” This question focuses on one’s values amid the realities of corporate survival.

7. Gerry Plana, 2019 PMAP president: “Cite a grave failure or serious mistake that happened in the past that made you a better person and professional today.” The question is about how you treated your mistake as an unforgettable burden or a stepping stone for success.

8. Chit Ventura, 1993 PMAP president: “What’s the legacy you want to leave behind and what steps are you taking to achieve that?” It’s not about material things, but the enduring character and faith of a person.

9. Jun Mendoza, retired Senior Vice-President of CTBC Bank Philippines: “If you’re the CEO, should you fire an HR department head because he played favorites by not firing an employee who should be fired?”

10. Erick Reyes, retired HR head of Roxas Holdings: “Tell me your biggest failure so far and how did you recover from it?”

I asked ten PMAP presidents to contribute to this article, but didn’t receive the reply of two other respondents in time to meet the deadline. Fortunately, my good friends who have HR experience took the last two slots.

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