VA Platinum Insights

Do you only want to hire Filipino staff because you’re a scrooge and you want work done for peanuts?

Remember if you pay peanuts, you get monkeys.

In this article, I’m exposing in raw detail what you should be paying Filipino virtual assistants and what their standard of living is at different levels of income.

Can they afford to put their kids through school?

Do they have to take a second job just to put food on the table?

If you’re like me, you’ve asked these questions and probably many more.

Overview of the Labour Market

Overall, the Philippines is an employees market.

It’s said that an employee can leave one business at morning tea and start with another by the afternoon.

This isn’t actually true because the labour code in the Philippines is strict that employees give 30 days’ notice to leave a business, but you get the picture.

There’s more to recruiting and keeping virtual assistants. You have to ensure you pay on time, treat them with respect, evaluate them regularly, give them paid holidays, and consider extras like health insurance and bonuses.

The horrific stories staff tell me about their previous working conditions and salaries have alarmed me.

It’s no wonder they want to jump ship.

Some Nagging Questions

Even though we pay our team well, every so often, I find myself asking…..

What does it cost my team to live comfortably?

Do I pay them enough?

Am I exploiting lower wages?

Or, am I paying my teams much more than the average and therefore giving them a better life?

For peace of mind, I interviewed staff and did some research online.

I’ve broken the findings down into 5 key areas:

1. The Philippines versus Australia

After 10min of Googling (is that even a word?), I discovered:

The website Numbeo states that:

“You would need around AUD $2,516.86 (99,161.36₱) in Cebu per month to maintain the same standard of life that you can have with AUD $6,200.00 in Melbourne (assuming you rent in both cities).”

The website Pay Scale states that:

the average wage in the Philippines for a customer services representative is AUD $790 (19,800₱).

Holy smoke, there’s a huge difference of 3 times between what a Filipino would need to earn compared to what they actually receive to have the same standard of living in Australia.

2. Do Filipinos expect the same standard of living as Australians?

In my trips to the Philippines, I can tell you that Filipinos don’t have the same expectations as Australians.

A Filipino considers they are doing well if they:

• Buy a daily coffee
• Can pay shopping centre prices at the food court compared to street vendors
• Buy regular items such as clothes and shoes
• See a movie

Australian’s take the above as a given, so they consider they are doing well if they can also:

• Own a car
• Live in a 3 bedroom, 2 bathroom house they are paying off
• Afford to regularly travel overseas

Consider this example, one-third of Australian parents CHOOSE to send their children to private schools, costing them AUD $20,000 per annum per child. That’s double the annual customer service wage in the Philippines just to send a child to a private school instead of a public school where the standard of teaching is arguably similar and would cost around AUD $850.

3. Non-cash remuneration

This is a big trap, so don’t get caught out.

Let’s say you’re interviewing a candidate and they earn ₱20,000/mth but you were considering paying them ₱30,000/mth.

You start second-guessing yourself why you should pay 30% more.

Make sure you ask questions about their ‘other benefits’ such as:

• Is breakfast supplied? If yes, is it just bread or is it a cooked breakfast?
• Do you get HMO (health insurance)? If yes, can you include family members at no extra cost?
• How much rice money?
• Do you get a travel allowance?
• Do you receive an attendance bonus or a Christmas bonus?

These extra benefits could add up to another ₱10,000 per month.

4. Comparison of living standards for different jobs

If we have to, anyone can live within their means.

As an employer, do you want your staff to value their job, or just be doing it until they can find something better?

Imagine training a team member for 6 months only to have them leave because they didn’t feel valued.

The table below gives you a guide as to the salary you should be paying Filipino virtual assistants. Mind you, we have staff joining us with 3+ years’ experience and they are being paid as junior call center agents.

5. How do the lowest-paid staff survive?

When a low-paid person is earning as little as AUD$250/mth (₱10,000), there is nothing left for social activities, hobbies, or personal pleasure.

So although happiness is an internal mindset, not having enough money can contribute to people’s level of health, wellness and mindfulness.

These entry-level working Filipino citizens would need to spend at least ₱10,300 on housing rent, bills, food, transportation, laundry, bathroom, and a phone credit allowance.

They need to be living at home with family or living in a hostel-style accommodation where they only have a bedroom and need to share the bathroom, kitchen and lounge with other tenants.

6. What about above-average paid staff?

Staff earning an annual income of ₱20,000-₱25,000, may opt to get an apartment instead of living in a cramp boarding house or bed space. A basic apartment can cost between ₱6,000-₱10,000 per month whereas renting a whole house can be anywhere between ₱12,000 to ₱20,000 depending on the location and neighborhood.

For a single person living on his/her own, ₱15,000 can get a person by with a little extra to enjoy personal desires.

But do you want to pay staff so that they can just get by?

Maybe they’ll end up taking a second job working at night and then start not performing all of a sudden and you begin questioning why.

Out of the blue, they stop communicating with you.

Of course, you blame them and blame the whole Philippine Virtual Assistant industry. But you shouldn’t.

Did you consider their feelings? Did you respect them? Did you create an open and transparent relationship? Or did you act as a dictator from across the ocean and expect them to perform for you?

By the way, if this is you now? Don’t worry, I was there too 4 years ago. But we can all learn to be better. I’m still improving every day.

7. Above-average working-class Filipinos with KIDS

All VA Platinum staff start off in this income band between ₱25,000 to ₱40,000.

Many of our team have children because we typically hire staff with years of experience.

Here are common expenses you will have to prepare for when bearing fruit:

A one-time fee (depending on how many children you intend to have!). Note that the Philippine government offers monetary assistance of up to ₱32,000 expecting mothers for the first (4) four children.

Then here comes your monthly expenses on top of hospital bills and month-to-month expenses.

To conclude, for an average Filipino household family with 1 child to maintain a comfortable lifestyle, the family income must reach at least ₱50,000 per month. Should they consider adding more children, the cost would be higher.

8. Other things to know

Many Filipinos support their family, parents included. In fact, many are the main breadwinners of their families, supporting their siblings through school and helping their parents in their retirement.

This is important to Filipinos so don’t downplay it. Understand it, and value that you have a staff member that is looking out for their whole family. I get choked up about this because it’s a special kind of person that does this.

Filipinos don’t like conflict, so try to be even-tempered and fair with all your feedback.

Filipinos are traditional and have important annual holidays to celebrate their ancestors and religions.

Cash is the best bonus/reward.

What have I learnt?

It’s not easy to get the equation right to paying Filipino virtual assistants the right wage.

There’s a lot to consider and if you’re still confused, don’t worry, I think you have to take each situation as it comes.

The main thing I believe is paying Filipino virtual assistants slightly more than you feel comfortable paying. This will help ensure your staff feel valued and they will want to reward you back with incredible performance.

Lastly, I can’t stress this enough….get over and meet your Virtual Assistants. Get to know them. Understand where they live and how they get around.

Every time I’ve done this, it has helped me know what to pay my team and the rewards I get back are 10x.

In the next few months, VA Platinum will celebrate not one, but three great milestones…

On August 17, we’ll celebrate reaching 100 staff and enjoy our annual summer outing;

30th October is our 2nd-year Anniversary dinner;

14th December is our Christmas/End of the Year party!

These are great opportunities to fly to Cebu and meet the staff.

As I’ve mentioned in a few of my blogs, it is ideal that you meet your staff within the first 18 months. This way you can experience working alongside them and get a chance to know them in person.

If you’re looking to hire amazing virtual assistants and want to get to know how some of my staff work, you’re welcome to join us and experience how fun Cebuano parties are.

I’m happy to travel together. However, in case our flight schedules vary, I’m sharing with you what I learnt about getting the best flights possible to Cebu from Australia.

I’ve been a happy crash-test dummy and tried every flight, route and airline available just so I can give you my personal experience with them and some helpful tips!

Cathay Pacific via Hongkong

This is my personal favourite.

I know that it sounds a bit strange to book a flight to Hongkong when your destination in Cebu, but I find that it has the shortest flight duration (7 hours) and most reliable service. From Hongkong, it’s a 2-hour flight to Cebu.

Cathay Pacific offers nighttime flights so be prepared. Use your points and upgrade from premium economy to business for the longer leg flight from Australia to Hong Kong, and vice versa.

Philippine Airlines (PAL)

This is the next best option on my list.

Philippine Airlines give reliable service, but not as good as Cathay Pacific.

It flies from Melbourne to Manila (9 hours) and then takes off from Manila to Cebu (2 hours).

It also has a longer layover in Manila, with anywhere between 3 and a half to 6 and a half hours.

Singapore Airlines

I like Singapore Airlines as much as PAL.

Flight duration from Tullamarine Airport to Mactan-Cebu International Airport via Changi Airport on Singapore Airlines is about 8 hours. The flight from Singapore to Cebu is 4 hours.

The layover time in Singapore is as long as in Manila with PAL.

They have codeshare destinations with Silk Air, so that’s something you might check too.

Cebu Pacific

My last and least favourite is Cebu Pacific. Based on experience, they are the least reliable.

I have discovered that on every single flight, my bags have been opened or checked by someone else and not by security.

They advertise that they fly directly from either Sydney or Melbourne to Cebu, but in reality, you still have to go through Manila.

There’s usually a really long overnight layover time in Manila.

Ironically, Cebu Pacific takes the longest amount of travel time to get to Cebu.

I’m not saying they’re the worst airline of all. I am just ranking them lower than the first three I mentioned based on what I’ve experienced so far.

After all, Cebu Pacific is the lowest cost carrier among the four I’ve named.

There are other low-cost carriers that you can try. You can even choose to book flights with different airlines to customise your travelling.

Some people do this to buy time and spend it on touring other cities before Cebu. It’s not an easy option because it takes harder work, but if maximising your travel is your priority, then you’ll be alright.

I hope you find my personal notes on getting the best Australia to Cebu flights helpful!

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Unsure what questions to ask a virtual assistant or prospective staff before hiring?

More financial planners, mortgage brokers and financial advisers are adapting to better business practices with the help of virtual assistants in the Philippines.

Apart from the obvious cost-effective benefits, advisers are more productive when they hand over the administrative tasks to their staff.

If you’re reading this because you’re about to get your own virtual assistant for financial planning or a virtual assistant for mortgage broking, you’re in the right place!

Here’s what most financial planners, mortgage brokers and other financial advisers miss when conducting interviews.

A good resume should show their relevant work background, work description, education and other qualifications. If this kind of information isn’t laid out, then it’s actually a bad sign.

In addition to prodding deep into the technical content of their resumes, what you could also focus on is how compatible you are with the staff you’re hiring.

The Invitation to Dinner Test

Compatibility plays a crucial part in hiring a virtual assistant. After all, they will work with you directly and interact with you on a daily basis.

You don’t want someone who “just gets the job done”. Instead, you want someone who you can easily relate to and communicate with.

For every interview, ask yourself – “Is this someone I’m willing to invite over for dinner with my family?”

Are they interesting enough? Can I have a meaningful conversation with this person? Are they fun? Are they both interesting and interested?

The answer to that is your best bet at making the most out of your offshoring venture.

In this article, I’m rounding up my top 5 questions to ask a virtual assistant during an interview. These questions have worked in my favour, and will work for you too!

1. Ask them about their life outside work.

One of the questions to ask a virtual assistant is to have them talk about what happens outside of work and see how easily the conversation flows. Check how interesting and engaging they can be.

Ask simple questions like, “Tell me about your daily life”, “Are you married?”, “Which flavour ice cream do you like to eat?”, or “What’s your weekend like?”…

Conversations don’t work one way, so try to share some of your stories with them too!

Ask them if they have questions for you too. This way you can gauge their interest in you.

If they’re not interesting for you, then they’re not going to be an interesting person for a client, or for a client’s client.

This awfully sounds like going on a blind date, but isn’t having a good conversation the best way to start all types of relationships?

You wouldn’t get a lifetime’s worth of knowing your staff but it gives you a good insight into what your staff values are. In return, it’ll be easier for you to make them realise the value you put in your work and business.

2. How easy are they to understand?

This is more of a question you ask yourself while conducting the interview.

How well do they respond to a question?

Do they resort to using a very thick accent? Do they talk too quickly?

Do they make it easy for you to understand what they are saying?

Are they answering in a coherent manner or do they lose the subject too often that it’s distracting?

Knowing how well someone communicates doesn’t only prove their speaking skills. What’s more useful to know is the person’s ability to think on their feet.

3. Ask why they want to work with you.

Know the reason why they want to be part of your business.

Is it because of the pay?

Personally, I think that getting “a bigger pay” is not enough reason. Simply because, if someone else lures them out with more, they tend to jump ship easily.

Is it just because of career advancement?

Or, do they just want a change in the working environment?

If they come to you because of this, then you can expect that they will probably last 2-3 years until they feel the same issue and leave.

Is it because their bosses weren’t treating them well and that makes them emotionally stressed?

Is there’s no clear guidance in the company training or some of their work expectation that wasn’t provided?

Look for a stronger motivation and reassure the staff of what you can provide for them.

Your assessment should help you find staff who can stay with you for 5 years plus.

This is how you can predict how long they can work for you and what kind of commitment they’re willing to give you.

4. Ask about their relationship with their previous company.

This is somehow related to question number 3, but placed in a different angle.

What you want to know is how they talk about their relationship with the previous company.

If you get a hint that you might be operating similarly to their previous workplace, or that you share a key characteristic with them and it has become crucial to why the staff left, then it’s a possible NO for that candidate.

Here’s an example:

If an applicant tells me that they left their old job because their previous company was growing too fast, I know that they’re not a good fit for VA Platinum.

Or,

If an applicant tells me that they left because their previous company was operating early in the day and I know that I operate in the same schedule, then it’s absolutely a no-go.

Also, consider how they describe their previous company to you.

If they’re too revealing about their previous workplace, or that they easily give up classified information… you might find yourself in the same threat.

You want to keep everyone happy by understanding the staff’s expectations from you and your business.

5.  Ask them about their successes.

While it’s great to hear about individual achievements, it’s better to hear how well they work with a team.

This is a personal deal-breaker for me since I work with a lot of people.

I want to hear how a person performs in a team and what achievements their team had.

Ask them, “While in a team, what did your team achieve?”

What you want to hear is not about them being better than their elbow buddy. Rather, you want to understand how they help others to be better for the team’s sake.

Asking these questions helps me and my clients get the best suited virtual assistants in the Philippines.

It’s wonderful to know how a “culturally fit” staff member works seamlessly for the benefit of your business.

Aside from the geographical distance, there’s really not much difference between hiring a virtual assistant and having someone in your physical office.

You should always treat and interact with your staff as if they sit beside you every day.

Building a good relationship with your virtual assistant that goes beyond what your business requires is a great investment. It’s an amazing workplace culture you will want to cultivate and enjoy.