- More than half of Filipino employees are considering leaving their jobs in 2025, making attraction and retention a top priority for local businesses.
- Onshore RPO offers specialized expertise, cost savings, flexibility, advanced hiring technology, and stronger employer branding.
- In-demand sectors like IT, finance, healthcare, manufacturing, and BPO face talent shortages and can gain a competitive hiring advantage by adopting onshore RPO.
- With 30+ years of experience, a client-focused approach, and a proven track record, Sysgen RPO is a trusted onshore RPO provider in the Philippines.
Did you know that 64% of Filipino employees are considering leaving their current companies in 2025?
With talent retention being one of the biggest challenges for local employers last year, companies have to rethink and step up. Traditional hiring strategies just won’t cut it in industries where qualified candidates are always in high demand.
That’s why recruitment outsourcing companies are becoming a game-changer. For example, onshore recruitment process outsourcing (RPO) helps companies fill roles faster and offer real-time market insights with their localized expertise.
Want to learn more about onshore RPO? Read on to discover how it compares to other recruitment strategies—and why it might be the best solution for your business amidst the “war for talent” era.
What is Onshore RPO?
Onshore RPO is a recruitment strategy where businesses collaborate with a local provider to manage and improve their hiring process. Instead of handling everything in-house, they can rely on experts who understand the job market, labor laws, and industry-specific hiring challenges.
How Does Onshore RPO Differ from In-House Recruitment?
While both onshore RPO and in-house recruitment focus on attracting and hiring top talent, they have some differences in key areas, like:
| Onshore RPO | In-House Recruitment | |
| Hiring Expertise | Uses experienced recruiters with industry knowledge and hiring tools | Relies on the internal HR team, which may have limited recruitment expertise |
| Cost | Can save money by making hiring quicker and more efficient | Fixed HR costs and extra expenses for recruitment tools |
| Flexibility | Can quickly adjust to hiring needs, scaling up or down as needed | May struggle to handle sudden hiring increases |
| Technology and Data | Uses modern hiring tools like artificial intelligence and data to improve efficiency | May still rely on basic HR software or manual processes |
| Employer Branding | Provides a consistent, well-managed hiring experience that enhances employer branding | Needs dedicated effort to maintain a good candidate experience |
How Does Onshore RPO Differ from Other RPO Models?
Recruitment outsourcing companies offer hiring solution options like onshore, nearshore, and offshore RPO. While all three aim to improve hiring efficiency, they differ in aspects, such as:
| Onshore RPO | Nearshore RPO | Offshore RPO | |
| Location | Operates within the same country as the company | Located in a nearby country, often in a similar time zone | Based in a different country, often with lower labor costs |
| Expertise | Strong understanding of local hiring trends | Moderate understanding, depending on proximity | Limited knowledge of the local job market |
| Compliance | Full compliance with local labor laws | Typically follows similar regulations but may have minor gaps | Higher risk of compliance issues due to different regulations |
| Cost | Higher due to local expertise and compliance | Mid-range, balancing affordability and local market knowledge | Lower, as labor costs are generally cheaper overseas |
| Candidate Quality | High, with a focus on cultural fit and employer branding | Moderate, with some level of cultural understanding | May face challenges in cultural and business alignment |
Benefits of Onshore RPO
As companies across all industries in the Philippines face challenges in attracting and recruiting top talent, onshore RPO becomes a strategic advantage for gaining a hiring edge locally.
Let’s look at how this RPO model can drive recruitment success for your company!
1. Better Alignment with Local Hiring Needs
One of the biggest advantages of onshore RPO is the providers’ deep understanding of the local job market, workforce trends, and industry-specific hiring challenges.
Recruitment outsourcing companies can:
- Tap into industry-specific talent pools and hiring networks in the country.
- Provide insights on salary trends, workforce mobility, and job market demands.
- Tailor recruitment strategies to match your company’s unique hiring needs.
2. Stronger Compliance and Risk Management
Navigating the labor market can be challenging with the strict Philippine Labor Code and updating employment laws. This can be simpler by working with an onshore RPO provider.
Recruitment outsourcing companies can:
- Help avoid legal risks from the Department of Labor and Employment (DOLE) and the National Labor Relations Commission (NLRC)
- Handle contracts, payroll, and employee benefits correctly to prevent compliance issues.
- Implement risk management strategies to protect your business from legal complications.
3. Enhanced Employer Branding
Attracting top talent goes beyond just offering competitive salaries today. With 34.6% of local companies’ salary budgets tightening, employer branding has become even more crucial in retaining and attracting top talent.
Recruitment outsourcing companies can:
- Strengthen your brand reputation in the job market through targeted recruitment campaigns.
- Improve candidate engagement by showcasing your company’s values and culture.
- Support long-term talent pipeline development for sustained hiring success.
4. Improved Communication and Collaboration
One of the key limitations of offshore outsourcing is the timezone and cultural differences, which can cause delays in recruitment processes.
Recruitment outsourcing companies can:
- Provide real-time hiring updates and feedback loops for smooth coordination and organizational change management.
- Operate within your time zone, ensuring no delays in decision-making.
- Work seamlessly with your internal HR team to improve efficiency.
5. Access to Top Talent
Today, 83% of Filipino employees value flexibility and personalization at work. This shift in employee preferences makes it increasingly challenging for employers to find highly qualified candidates
Recruitment outsourcing companies can:
- Fill roles quickly when you need to hire many employees within tight deadlines.
- Offer insights into emerging talent trends, ensuring businesses stay ahead of competitors.
- Free up internal resources by handling recruitment so your team can focus on core business functions.
Who Should Use Onshore RPO in the Philippines?
Many industries can benefit from onshore RPO, especially those that require specialized skills, regulatory compliance, and a strong understanding of local market dynamics.
Here are some industries that can effectively address their unique hiring challenges by partnering with local RPO providers:
1. Technology and IT
According to Resecurity, cyberattacks in the country spiked by 325% from late 2023 to early 2024. This surge left companies vulnerable, highlighting the urgent need for trained technology experts. However, the Philippines is experiencing a “tech brain drain” as skilled individuals seek higher-paying opportunities abroad.
2. Financial Services
With the local financial sector booming, the financial services market is also on the rise. In fact, the industry saw an average of 926 job postings and 1,483 job closures monthly between October 2023 and January 2024, indicating a competitive landscape for top talent.
3. Healthcare and Pharmaceuticals
The country faces a growing shortage of healthcare professionals, with 190,000 additional workers needed to fill critical roles in hospitals and clinics, as per the Department of Health (DOH). This shortage is worsened by the continuous migration of skilled medical workers seeking higher wages and job security.
4. Manufacturing and Engineering
The Philippines produces around 50,000 engineers yearly—not enough to bridge today’s industry demand. A weak science, technology, engineering, and mathematics (STEM) talent pipeline, driven by low rankings in math and science, makes it even harder to fill critical roles locally.
5. Retail and Business Process Outsourcing (BPO)
As reported by the IT and Business Process Association of the Philippines (IBPAP), many schools are struggling to produce graduates equipped with artificial intelligence (AI) expertise, creating a supply gap that could slow AI adoption in local BPO firms. That’s why companies need to attract and develop talent with specialized digital skills to stay competitive.
Common Challenges and How to Overcome Them
Although onshore RPO can bring significant benefits across high-demand industries in the Philippines, transitioning to this model isn’t always smooth sailing. You may encounter obstacles along the way, but with the right approach, these challenges can be effectively managed.
Let’s explore some common hurdles and how to overcome them!
Challenge 1: Cost Concerns
The Society for Human Resource Management (SHRM) claims that the average cost per hire for in-house recruitment is approximately $4,700 or around ₱270,000. In contrast, RPO providers often offer more scalable and cost-effective solutions, potentially reducing the cost-per-hire.
To overcome this:
- Conduct a Cost-Benefit Analysis: Compare the total expenses of maintaining an in-house team—including salaries, training, and technology investments—with the fees of an RPO provider.
- Select the Right RPO Partner: Choose a provider that offers flexible pricing models and a proven track record of delivering quality hires efficiently.
Challenge 2: Transition Difficulties
A 2023 survey by the Asian Institute of Management revealed that over 60% of Filipino middle managers feel inadequately prepared for organizational changes, which can lead to resistance and implementation challenges. This can be more difficult when you partner with an unreliable RPO provider.
To overcome this:
- Develop a Comprehensive Transition Plan: Outline clear steps, timelines, and responsibilities to guide the change process.
- Engage Your Stakeholders Early: Involve managers and employees in planning and provide training to equip them for the transition.
- Maintain Open Communication: Regular updates and feedback channels can address concerns and foster a collaborative workplace.
Challenge 3: Employer Brand Consistency
In the Philippines, high employee turnover rates, especially in sectors like Business Process Outsourcing (BPO) with attrition rates reaching 30% to 40%, often stem from inadequate compensation, limited career progression, and poor workplace culture.
You have to partner with a trusted RPO provider to avoid a disconnect between expectations and reality for new hires.
To overcome this:
- Choose a Partner That Understands Your Brand: Work with a recruitment outsourcing company that takes the time to learn your company culture, values, and mission.
- Regularly Review Employer Branding Strategies: Align recruitment efforts with your internal culture. For example, on social media, showcase employee testimonials and workplace achievements that give job seekers an authentic view of what it’s like to work with you.
- Enhance Workplace Culture: Address internal issues related to management practices, employee recognition, and work-life balance to create a supportive environment that reflects positively on your employer brand.
Challenge 4: Resistance to Change
A report claimed that 22% of accounting employees in the Philippines were highly dissatisfied with their work due to poor working conditions, and 24% were dissatisfied with compensation policies, leading to high employee turnover.
Such dissatisfaction can also manifest as resistance to organizational changes like an onshore RPO partnership.
To overcome this:
- Communicate the Benefits Clearly: Highlight how the RPO model can improve working conditions, offer better support, and contribute to overall job satisfaction.
- Involve Employees in the Process: Seek input and feedback from staff to make them feel valued and part of the change.
- Provide Support and Training: Equip employees with the necessary tools and knowledge to adapt to new processes, reducing anxiety and resistance.
Best Practices for Successful Onshore RPO Partnership
To maximize the benefits of onshore RPO, companies have to take a strategic approach when choosing and working with among the recruitment outsourcing companies out there.
Here are some best practices you can use to ensure a successful partnership:
Tip 1. Define Clear Hiring Goals and Expectations
Based on the 2024 Salary Budget Planning Report, 24.4% of Filipino employers plan to increase their headcount this year. This highlights the importance of setting clear hiring objectives to prevent inefficient recruitment processes and prolonged vacancies.
How you can do it:
- Identify Key Hiring Challenges: Recognize specific areas where your organization faces recruitment difficulties, such as roles with skill shortages or high turnover rates.
- Set Measurable Recruitment Goals: Establish clear objectives, like reducing time-to-fill for critical positions or improving retention rates within the first year of employment.
- Align Internal Stakeholders: Ensure that HR teams, hiring managers, and executive leadership all understand your company’s recruitment priorities and strategies.
Tip 2. Select the Right RPO Partner
Recruitment outsourcing companies are gaining more popularity amidst the ongoing “war for talent” in the labor market. That’s why choosing an RPO partner with the right expertise is more important now.
How you can do it:
- Evaluate Industry Experience: Research potential RPO partners’ track records in your specific industry, ensuring they have successfully filled roles similar to yours.
- Assess Client Feedback: Look for testimonials or case studies from businesses in your sector that show the RPO provider’s effectiveness and reliability.
- Verify Compliance Knowledge: Confirm that the provider has a strong understanding of local labor laws and regulations to mitigate legal risks by asking relevant questions, such as:
- How do you stay updated with changes in Philippine labor laws and DOLE regulations?
- What measures do you take to prevent labor disputes and legal risks for your clients?
- Can you provide examples of how you’ve helped companies navigate compliance challenges?
- Ensure Cultural Compatibility: Choose a partner whose values and working style align with your organization’s culture for seamless collaboration in the long run.
Tip 3. Use Data-Driven Recruitment
The surge in online recruitment by 20% in October 2024 reflects the growing importance of data analytics in hiring strategies. Sticking to traditional hiring methods can limit your ability to adapt to these evolving workforce trends.
How you can do it:
- Leverage Market Intelligence: Analyze current salary benchmarks and talent availability to make informed compensation offers.
- Implement Analytics Tools: Adopt software that tracks recruitment metrics, such as applicant sources and conversion rates, to identify the most effective hiring channels.
- Monitor Candidate Quality: Regularly assess the performance and retention of new hires to refine your recruitment strategies in collaboration with your chosen recruitment partner.
Tip 4. Ensure Collaboration with Your In-house HR
As the Philippine labor market advances with recent technology, your RPO provider should work as an extension of your HR team rather than a separate entity. Always remember that collaboration results in a more efficient hiring experience and better long-term talent retention.
How you can do it:
- Establish Clear Communication Channels: Set up regular meetings and collaboration tools like Slack and Microsoft Teams between your internal HR team and the RPO provider to ensure alignment.
- Align Recruitment Workflows: Integrate your RPO provider’s processes with your HR systems to maintain consistency in candidate experience and employer branding.
- Maintain Consistent Employer Branding: Ensure that all recruitment communications reflect your company’s culture and values, regardless of the source.
Tip 5. Monitor and Optimize Performance
With the employment rate reaching 96.8% in November 2024, continuous performance monitoring is essential to maximize your onshore RPO partnership’s return on investment (ROI).
How you can do it:
- Set Key Performance Indicators (KPIs): Define metrics such as time-to-hire, cost-per-hire, and quality of hire to evaluate the effectiveness of your partnership.
- Conduct Regular Performance Reviews: Schedule periodic employee reviews with your RPO provider to discuss achievements, challenges, and areas for improvement.
- Implement Data-Driven Adjustments: Use performance data to make informed decisions about modifying recruitment strategies or processes.
Why Sysgen RPO is Your Trusted Partner for Onshore RPO in the Philippines
As companies face growing challenges in talent acquisition and retention, partnering with a reliable onshore RPO provider like Sysgen RPO can make all the difference.
Here’s why Sysgen RPO stands out:
1. Proven Local Expertise
With over 30 years in the recruitment industry, the firm has a proven track record of navigating the Philippine job market. Its expertise in local hiring trends, salary benchmarks, and labor laws ensures efficient, compliant, and effective recruitment solutions.
2. A Partnership-Driven Approach
Sysgen RPO prioritizes long-term partnerships over one-time transactions. By taking the time to understand your company’s specific hiring needs, culture, and business goals, it provides tailored recruitment strategies that drive success.
3. Trusted by Industry Leaders
Sysgen RPO has earned the trust of top companies across various industries, from IT and finance to healthcare and engineering. Testimonials showcase its ability to deliver high-quality talent while adapting to industry-specific challenges making it a preferred partner for businesses looking to scale efficiently.
Elevate Your Hiring Strategy with Sysgen RPO
Finding the right talent in today’s competitive job market requires a strategic, localized approach. With onshore RPO, Sysgen RPO helps businesses in the Philippines streamline recruitment, access top talent faster, and stay compliant with labor laws—without the challenges of in-house recruitment.
With decades of experience and a deep understanding of industry-specific hiring challenges, we provide the expertise and flexibility you need to build a strong workforce.
Whether you’re scaling fast or filling critical roles in technology, finance, healthcare, manufacturing, or retail, our tailored solutions ensure you get the right candidates quickly and effectively.
Ready to transform your recruitment strategy? Partner with us today and experience the advantages of onshore RPO.
