Recruitment contracts via e-Marketplaces

Most eco-nomists have noted a signi-ficant improve-ment in remitta-nces from over-seas Filipino workers (OFWs), enough to keep the Philippines’ international reserves afloat. Perhaps driven by opportunities overseas, it’s a given phenomenon that several people have taken cognizance of the need to save money for their families and retirement years. With the increasing demand for English-proficient and highly skilled workers, recruitment agencies have promising prospects to look forward to.

Based on the Labor Code, recruitment is defined as "canvassing, enlisting, con-tracting, transporting, utilizing, hiring or procuring workers" for work here or abroad. Those who wish to put up recruitment or placement firms must comply with guidelines formulated by the Philippine Overseas Employment Ad-ministration (POEA), a government-run agency handling licensing for overseas recruitment companies. To set up a recruitment venture, the estimated capital ranges between P3 million and P5 million. The validity of an enterprise also rests on permits, licenses and clearances that must be secured, aside from having to partner with a credible foreign recruiter and setting aside enough operating cash resources to compensate for utilities, marketing and communication charges, among others. While some entrepreneurs have deep pockets to go through these mechanics, others opt to participate in e-Marketplaces to avoid replication of competencies.

Our Labor Code’s definition of recruitment is in synch with what an online procurement facility provides, specifically in managing activities and running transactions. eProcurement engines simplify the route for efficient manpower pooling with participating business agencies, and have benefits to offer relative to reduced transportation costs and logistics, maintenance and other charges. Through e-Marketplaces’ linkages with foreign embassies, for example, contracts are likewise best monitored by independent third parties that aid in partnership dealings with credible institutions. Appropriate background checks both for domestic and foreign recruitment enter-prises can be facilitated via scorecard services, and feedback from other business customers across industry platforms.

Since the bulk of administrative work is minimized, utilizing an e-Marketplace helps placement agencies concentrate on monitoring the performance quality of their deployed workers and devote more time to safeguarding their interests. Most are also able to prepare for contingencies so they could weather hiring cycles, especially when unexpected geopolitical events occur. Focus is also optimized on monitoring co-partners’ compliance with contract terms and conditions, while decision-makers are able to set appropriate controls to properly eliminate non-completion of undertakings.

The growing demand for OFWs can be facilitated with ease without necessarily abandoning prudence. Several services can be utilized via e-Marketplaces, especially in streamlining administrative-related tasks. There could be improved coor-dination with government entities, specifically on aspects tied to the creation of training skills and other enrichment programs that could at least alleviate the deployed workers’ condition, especially in being separated from their loved ones. All that is needed is an entrepreneur’s continuous drive to learn and re-learn the process.

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Maritel M. Atienza is the assistant general manager of SourcePilipinas. For queries, e-mail her at [email protected].