- 64% of Filipino employees are considering leaving their jobs, with benefits and financial well-being increasingly influencing decisions.
- Companies can make smarter compensation decisions by identifying critical roles and collecting reliable data.
- HR leaders can further enhance their decisions by comparing with relevant industries and regions, analyzing internal pay structures, and regularly reviewing benefits.
- Transparent salary ranges, meaningful benefits, and regular compensation reviews help attract and retain talent in a shifting job market.
- Recruitment agencies like Curran Daly & Associates help streamline hiring while aligning pay with market expectations.
Did you know that almost two-thirds (64%) of Filipino employees are thinking about leaving their current jobs? And it’s not just about higher pay; they now look for better benefits and more support for their financial well-being.
In this tight job market, offering fair and reasonable compensation really matters. If your company understands pay trends and tailors its compensation packages accordingly, it can attract the right people and avoid high turnover.
To achieve this, you’ll need accurate and up-to-date insights into what the market is willing to pay through salary benchmarking. This approach helps you identify gaps that might be pushing candidates toward other employers.
This article will guide you through effective salary benchmarking and provide practical strategies to establish competitive, sustainable pay structures for Filipino employees.
A Step-by-Step Approach to Salary Benchmarking
Philippine companies are under growing pressure to get compensation right, but the job market is far from straightforward.
Many firms are planning a moderate pay hike of around 5.2% in 2026, while some claim they will cut salary budgets due to reduced profits. With these mixed trends, you need to make fairer and smarter compensation decisions.
Here are five key steps your company can take for effective salary benchmarking:
Step 1. Identify Roles to Benchmark
You can begin with critical, high-turnover, or hard-to-fill positions. But remember, the roles you prioritize should align with your organization’s growth plans, talent strategy, and the functions that drive the most impact.
For instance, a tech company might find that service desk analysts, machine learning engineers, and information security specialists are either churning faster than expected or becoming increasingly difficult to hire.
It aligns with Aon’s latest Salary Increase and Turnover Study, which found that attrition is particularly high this year in information technology (24%), artificial intelligence (21%), and cybersecurity (20%).
Step 2. Gather Reliable Data
To build a salary model that works, you lean on trusted sources like salary surveys, industry reports, and even local and international job boards. It lets you see what other companies are currently advertising for similar roles.
If this isn’t enough for you, you can also partner with a recruitment agency. These people are deep in the trenches: talking to candidates, negotiating offers, and seeing what real people are being paid for these exact jobs right now. This intel can be a game-changer that broad surveys can often miss.
Step 3. Compare Against Relevant Markets
Once you’ve gathered your salary data, the next step is making sure you’re comparing it against the right markets. You have to look at offers within your industry, from companies of a similar size and at the same seniority level.
Then add geographic context (if applicable). Even if your head office is in Metro Manila, you may be expanding hiring to Cebu, Davao, or Iloilo. It means you need to factor in provincial minimum wages, which are often lower than the National Capital Region (NCR) rates.
Step 4. Analyze Your Internal Pay Structures
Once you have gathered external data, it’s time to focus on internal factors. This involves checking for pay compression, where the salary differences between junior and senior levels narrow. It is also essential to ensure that top performers receive appropriate compensation.
For example, an engineering company may discover that its junior engineers hired in 2025 are earning only 5–7% less than mid-level engineers hired three to four years earlier. If left unaddressed, it can lead to disengagement among longer-tenured staff and even higher turnover.
Step 5. Review Benefits Beyond Salary
According to WTW, 38% of firms plan to adjust salary ranges more aggressively to retain key workers. This proves that more companies are investing in programs that improve loyalty and overall employee experience.
Compensation now extends beyond salaries. Be sure to review and benchmark allowances, healthcare (HMO), paid time off (PTO), and other perks, especially as Generation Z, dubbed “career minimalists,” continues to enter the workforce.
Three Strategies to Build Competitive Pay Packages
With the Philippine economy expected to slow down in the coming year, it’s unsurprising that Filipino workers are becoming more selective about where they work and what compensation they accept.
Let’s look at three strategies to make your pay packages more fair and reasonable to the market.
1. Offer Transparent and Realistic Salary Ranges
Set salary ranges that align with current market data and sustain your organization. Regardless of a candidate’s strengths, ensure the compensation offered doesn’t create internal issues or overextend your budget in the long run.
Once you establish these ranges, prioritize transparency. Clearly communicate salaries in job postings and during hiring conversations to help candidates understand what to expect. This approach builds trust from the start and reduces lengthy negotiations that can slow down the hiring process.
2. Combine Base Pay with High-Value Benefits
While base pay is important, employees increasingly value benefits that improve their overall quality of life. The Philippines ranked 59th out of 60 countries in Remote’s Global Life-Work Balance Index last year, highlighting the growing importance of high-value benefits in the country.
As more Millennials and Gen Z comprise the talent pool, offering a strong benefits package is essential. This can include:
- Flexible work arrangements – Remote work options, hybrid schedules, or flexible hours to support work-life balance.
- Health and wellness programs – Medical coverage, mental health support, and wellness stipends.
- Retirement and financial planning – Contributions to retirement plans, life insurance, or financial wellness programs.
- Professional development opportunities – Upskilling programs, certifications, and mentorship initiatives that support career growth.
3. Review Compensation Regularly
According to Megaforce, new workers’ salary expectations have risen more than 26% in just four years, possibly due to rising inflation and a tightening job market. However, not all companies can always match them.
To stay competitive, regularly review your salary and benefits packages. If your budgets are constrained, highlighting career development programs or a positive workplace culture can make your organization 100 times more appealing to candidates than salary alone.
Final Thoughts
Attracting and retaining top talent now requires more than offering high salaries. You also have to provide benefits that support employees’ well-being, create transparent and fair pay structures, and stay attuned to market expectations.
However, keeping track of all these factors can be challenging, especially if you’re still growing your business. That’s where recruitment agencies like Curran Daly & Associates can help you.
With local expertise and a regional presence across Manila, Sydney, and Hong Kong, we support companies in recruiting leaders who can drive growth and strengthen teams with competitive yet sustainable compensation.
Are you ready to simplify hiring without worrying about whether your pay packages are competitive? Contact us today to see how our executive search expertise can help you find the right leaders at the right time and at the right price.
0 Comments