Paying outsourced employees is a hot topic right now and I receive a lot of questions about it, so I thought I would fill everyone in on where I stand. I sometimes get people who ask me if it is really ethical to pay so little – less than minimum wage in the US, to my outsourced employees (particularly my Filipino employees).
It’s a valid and widely asked question, but it’s also an ignorant one. People who ask this are usually incredibly unfamiliar with the economic culture of the Philippines.
The truth is, in the Philippines, $250 to $400/month starting wage is excellent pay. I know it’s a shift for a lot of people who can’t imagine getting enough to eat with that little money each month, let alone a comfortable lifestyle. But again, the standards of living are really incomparable. For starters, everything costs less over there.
Some experience and time will also make it clear that in certain areas of the Philippines, where the standard of living is more “expensive”, you’ll be starting your employees out at a higher pay rate, whereas a hire in the provinces will cost you less.
I always start my employees on the lower end of the pay scale until they have proven their value and skills, and then, just like a regular job in the US, I offer wage increases and bonuses based on performance. That’s how I keep my employees loyal and effective.
So, on the surface, I can see why people see the typical wages of outsourced employees as unjust and even immoral. But a little background and education makes it clear that not only are the typical wages completely ethical, they’re an incredible value to these people whose lives are changed when you hire them.
So do yourself a favor today, and change lives…yours AND theirs.
(NOTE: It is highly recommended that you take my FREE 60 Second Outsourcing Test to find out if you’re ready to make more by doing less. Click here to learn if you’re ready to outsource in just 60 Seconds!)