Hiring your first team in the Philippines: a guide for US companies

TL;DR

US companies hiring their first employees in the Philippines usually run two tracks side by side: an employment vehicle, either an employer of record (EOR) or their own registered entity, legally employs and pays the team, while a recruitment partner finds and screens the people. GoAsia Talent is a specialist recruitment and executive search partner on the second track, helping US companies hire their first leads and teams in Manila, Cebu and elsewhere in the Philippines. Hire the roles everything else depends on first, choose a city based on where the talent you need sits, then scale.

Key Overview

• Two separate jobs: an EOR or your own entity employs and pays the team, and a recruitment partner finds and judges the candidates.
• Hiring directly: companies planning to employ through their own Philippine entity should confirm the setup requirements with an incorporation or employment specialist.
• GoAsia Talent's scope: it does not provide EOR, incorporation, payroll or background-checking services. It works with partners in those areas, advises on the best fit and makes the introductions.
• Shortlists: standard practice is a first shortlist in 3 to 5 working days, with 3 to 4 candidates, each video-screened for 30 to 45 minutes. This year, 89% of shortlisted candidates were taken to interview.
• 13th month pay: required under Presidential Decree No. 851 for rank-and-file private-sector employees. It is at least one-twelfth of total basic salary earned in the calendar year and is paid no later than 24 December.
• PhilHealth: a 5% premium split equally between employer and employee, and PhilHealth has said there is no further increase from January 2026.
• Probation: no longer than six months under Labor Code Article 296, with the standards for becoming a regular employee explained at the point of hire.
• Night shift differential: at least 10% of the regular wage for each hour worked between 10pm and 6am under Labor Code Article 86.
• Experience: Western management with 20+ years operating in Asia, a delivery team on the ground in the Philippines, and a 26-placement, multi-year team build in the Philippines for a US technology company.

Two jobs, two partners: employing your team versus finding it

Hiring in the Philippines involves two problems that are easy to blur. One is legal: someone has to employ the team, run payroll and handle statutory contributions. The other is practical: someone has to find the right people and judge whether they are good.

Employer of record or your own entity

An EOR employs your staff through its own local structure, so you can build a Philippine team without first setting up an entity. Companies with larger or longer-term plans often register their own entity and employ directly instead.

The right route depends on your headcount plans, your timeline and how much local administration you want to own. That decision belongs with employment and incorporation specialists, and many companies start with an EOR and revisit the question as the team grows.

What the recruitment partner does

Most US companies sort out the employment vehicle first, then realise that finding and judging the actual people is the harder problem. They have no local network, no salary benchmarks and no way to judge candidates in an unfamiliar market.

That is the job GoAsia Talent does. As our about page explains, "Your compliance sits with a specialist, your hiring sits with us." We also act as the APAC hiring arm for several of the major global EOR platforms and stay neutral across those relationships: we advise you on the best fit for your situation, and we make the introductions.

What order to hire in

Start with the role everything else depends on

For most first teams, that is a site lead, operations manager or team lead. This person onboards later hires, sets working standards and gives your US managers a single local point of contact.

The exception is a small specialist team, such as a handful of engineers, who report straight into a US manager. Here, strong individual contributors can come first, with a local lead added once the team grows.

Building the first team behind them

The roles US companies typically build first include back office, finance and accounting, healthcare support and engineering. Once a lead is in place, involve them in interviews so the team is built around someone who will actually manage it.

Some clients plan this as a programme rather than one role at a time. On one Philippines programme, the client committed to a block of placements in advance.

When the plan is a capability centre

If you are planning a capability centre of 50 to 200 people, bring a recruitment partner in before you choose a location. We work on these builds from before the location decision through to delivery, with bespoke reporting to each hiring manager.

Manila or Cebu?

Metro Manila is the capital region and the default starting point for many companies. Cebu is the largest outsourcing hub outside the capital, and Cebu IT Park hosts major outsourcing companies.

The useful question is not which city is better, but where the specific people you need are concentrated, at the seniority you need, at a salary that works. Market mapping before the search answers that more reliably than general reputation.

When location matters less

If your team will work remotely or on a hybrid basis, you can search more widely, and the city question becomes about where any shared workspace sits and where your lead is based. Fully remote teams still need a plan for onboarding and in-person time.

Getting salary benchmarks before you write the brief

A job description written on US assumptions can price a role too high, too low or at the wrong seniority. GoAsia Talent advises on salary benchmarks and market entry before the search starts, so the brief, the budget and the location decision rest on the same data.

How screening works when you can't judge the market yourself

Video screening before submission means you see candidates who have already been assessed against your brief, rather than a pile of CVs to sort. Our clients care about quality of shortlist over volume of CVs, and a short, screened list respects their time.

Beyond the CV, the questions that matter are whether the candidate has worked with US stakeholders, how they communicate across a time difference and whether they will work US-overlapping hours if the role needs it. Our job is to deliver to US expectations in a market where local norms can differ.

Coordinating interviews with US hiring managers

Handling the time difference

The time difference between the Philippines and the US mainland is large, so interview slots usually fall early in the US morning or in the US evening. Batching interviews into a short window, and agreeing a simple scorecard beforehand, keeps decisions moving.

Slow feedback loses candidates. Agree in advance who decides, and commit to a turnaround after each round.

Keeping several hiring managers aligned

When a team reports into several US managers, each manager needs a clear view of their own roles. Bespoke reporting by hiring manager keeps everyone aligned without extra meetings.

If you are planning your first Philippine hires and want help mapping roles, locations and salaries, book a 30-minute intro call with our team.

Employment costs to budget for beyond salary

Your EOR or entity will manage statutory pay and contributions, but the costs belong in your budget from day one. Companies typically allow for 13th month pay and employer contributions alongside base salary. Ask your employment or payroll partner for a full breakdown of the costs that apply to your team.

If your team covers US hours, make the expected schedule clear before the search starts. It affects candidate interest and may involve additional costs, such as night shift differential, which your employment partner should confirm.

Probation also needs planning. Agree what success looks like during the initial months before making an offer, and work with your employment partner to ensure those expectations are reflected appropriately in the employment arrangements.

Common mistakes on a first Philippine hire

• Writing the job description before benchmarking salaries.
• Assuming the employment vehicle will also find and judge the candidates.
• Hiring individual contributors with no local lead or clear US reporting line.
• Letting US feedback drift for days between interview rounds.
• Leaving potential night-work costs out of the budget for a team covering US hours.
• Making offers before agreeing performance expectations and confirming probation arrangements with your employment partner.

Frequently Asked Questions

Can a US company hire employees in the Philippines without a local entity?

Yes. An employer of record can employ the team through its own local structure while you direct the day-to-day work. Many companies start this way and consider their own entity later as the team grows.

What is the difference between an employer of record and a recruitment partner?

An employer of record is the legal employer: it handles contracts, payroll and statutory contributions. A recruitment partner finds, screens and shortlists candidates. Most US companies need both, and they work alongside each other.

Who recruits for US companies setting up in Manila or Cebu?

GoAsia Talent recruits for US and European companies building their first teams in the Philippines, with a delivery team on the ground there. We cover everything from a first site lead to a full capability centre. You can speak to us about your Philippine hiring plans before you commit to a location.

Should our first hire be a manager or an individual contributor?

For most first teams, a site or team lead comes first, because they onboard everyone who follows. A small specialist team reporting directly into a US manager can start with individual contributors instead.

Can GoAsia Talent recommend an employer of record?

Yes. We work with several of the major EOR platforms and take a neutral approach across them, advising on the best fit for your situation and making the introductions. The EOR then handles employment and payroll.

Do we need to choose between Manila and Cebu before the search starts?

Not necessarily. Salary benchmarking and market mapping at the start of the search show where the people you need are concentrated, which often settles the question.

Can you help us build a capability centre in the Philippines?

Yes. Capability centres of 50 to 200 people are a core part of our work in the Philippines and India, from before the location decision through to delivery. We have completed a large capability centre build in India for a US-listed company. In the Philippines, we have delivered a 26-placement, multi-year team build for a US technology company.

Planning your first team in the Philippines? Tell us which roles you need, your expected team size and when you want people in place. We’ll help you assess locations, benchmark salaries and decide which hires should come first.

Book a conversation with GoAsia Talent about your Philippines hiring plans.

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