Manila, Philippines (October 10, 2008)  With the sudden increase of basic commodities such as food, transportation and rent, many employees are now faced with harsh reality and cutting down on spending.  As of June 2008, current inflation in the Philippines has hit an all time high of 11.4% - the highest in more than a decade.  Employees are now turning to their employers or the job market to increase their salary to compensate for the rising cost of living.

XMG research reveal that call center, IT and BPO companies in Metro Manila should brace themselves for increasing sentiments from employees for a salary adjustment as a form of lifeline support to combat inflation.  Figures derived from the latest XMG Employment Lifestyle Index conducted in Q3 2008 confirm that more than 73% of the respondents from the total pool of 100 ICT talents working in Metro Manila feel the need to increase compensation from their employers.  Only 12% are currently satisfied with their current salaries.  Of the 73%, over 70% are actively looking for better opportunities within the city or overseas.  Relative to the traditional regular day job, ICT workers are given higher net compensation including night differential, transportation and clothing allowance, food subsidy and bonuses.  "Our numbers show there is a genuine trend for the constant clamor by employees to increase the cash component of their enumeration", XMG Research Statistician Emerson Fababaer said.

Despite the global economic crisis and growing unemployment, the offshoring industry will take less of a hit.  Therefore, XMG expects HR practitioners will be faced with the dilemma of addressing the immediate needs of employees to manage attrition. The study also show that highly technical professionals such as those in IT and Engineering are seeking potential employment opportunity in Singapore, Australia, Canada, the United States and the Middle East to increase household savings.  "There are very few extrinsic options.  Either provide a relief in the form of increased compensation, subsidy or allowance or position the current compensation package as being above industry", XMG Chief Analyst Lauro Vives adds.

Based on several multi-client studies completed by XMG, the prescription that worked in the long run have been performing regular compensation benchmarks combined with the deliberate alignment of both employee attitude and value in building a sense of ownership in the company.  Vives explains, "This means a shift from a monetary based attitude to a self-fulfillment outlook".

To raise employees' level of commitment and overall productivity, the report further recommend organizations to frequently review its incentive structure and independently monitor employee perception and behavior to accurately gauge employee sentiments towards the organization.