Before the pandemic, the idea of working from home was one of the options to solve the Metro Manila’s chaotic transportation system. It was hampered by poor broadband connections outside of the central business districts.
Fast forward to today… the pandemic lockdowns forced offices, including our dollar earning BPOs, to try work from home. BPOs invested in reliable connections for employees and moved some facilities to their homes. It worked.
Forcing them back to work is not as simple as flipping a switch. They have to manage the relocation of facilities and adjust their staff to the new system. Their request to allow work to be done from home, as endorsed PEZA, is reasonable.
Even Colliers, a property consultancy firm, expressed concern that the Philippines could lose market share to India, a main competitor. India encourages work-from home arrangements.
The Fiscal Incentives Review Board(FIRB) doesn’t see any reason to require BPOs who have PEZA privileges to report to their offices by the end of each month or lose their tax perks. One, the pandemic may not be over. Even the DOH says that an increase in cases could happen at any moment.
Another reason is that our transport services are still improving after two years of very limited operations. Late payments of service contract fees plague the EDSA bus carousel.
The drivers, one letter writer complained to me, do not receive their P300 stipend on time, lugi raw sila at umuuwi na lang sila pagkatapos ng tatlo hanggang apat na ikot sa Carousel.
The bus conductor explained to the letter writer that they call it a day in normal circumstances as early as 1pm. It’s no wonder commuters struggle to find a ride at night, when BPO workers are most in need of public transportation. Or, buses are overcrowded and there is no social distancing.
The DOF economic managers have cars.
The only reason economic managers give for directing employees to return to their offices is that they will increase the recovery of the economy through spending on food, transport, and other incidental costs.
Companies face a problem in that many of their employees have adapted to working remotely. They will need to find babysitters and househelp to return to work.
Many employees will leave, disrupting operations. Companies will also lose investments in training them.
Many workers now know how to balance work and home responsibilities. They will only look for WFH-friendly companies.
There is also the terrible traffic situation and poor public transportation system. Spending four or more hours a day commuting is a nightmare many now know they don’t have to suffer. WFH’s high gasoline prices are another reason to stay put.
Hybrid first is a great way to get back to your old routine. It might be possible to work three days at the office and two days at home. One industry executive stated that the most worrying aspect of BPOs is the possibility of losing competitiveness.
“On a macro level, the competitiveness of the country’s outsourcing industry may also be at risk as it competes with other markets (e.g., India) where increased WFH allowance may provide the advantage of stronger employee retention, engagement, and performance.”
The DOF says reluctant firms can always give up their perks if they can’t go back to the office by month end.
The “our way or the highway” approach of our economic managers is pathetic. They appear to be in panic mode and trying to salvage an economy that was fully recovered from the pandemic before 30 June. That’s unreasonable.
IT-BPM is one the two main pillars in our economy. It should be encouraged to stay competitive. It has consistently been an integral contributor to the country’s economic output. Our rules must adapt quickly to the changing needs of the industry as well as their employees.
Despite the severe pandemic-induced lockdowns, the BPOs saw an increase in revenues of 1.4 percent to $26.7 Billion by 2020. They were able to do this by switching to WFH mode. It also increased headcount by 1.8%.
In 2021, industry revenues rose 12 percent to $28.8billion, while the number of workers grew eight percent, to 1.4 million. The BPO industry is the largest employer within the private sector.
The FIRB/DOF says they want to revive the economy quickly, but they shouldn’t do that by handicapping the BPO industry.
WFH should be understood by the government, even though it was initially a response to the pandemic. This remote setup has been shown to increase productivity.
This is why Rep. Joey Salceda wants a “working compromise” on the DOF’s FIRB order against WFH BPOs.
“The work-from-home setup has made the BPO sector more inclusive, especially for parents with young children and those who care for loved ones at home,” Rep. Joey said.
Salceda seems unsure that there will be tax loss if WFH arrangements continue. He wants to get “a sense of the scale of the tax leakage that the FIRB is worried about. I just want to know the costs and benefits of the policy they’re insisting on.”
Manny Pacquiao is the presidential candidate.
“Our BPO workers are still helping our economy even if they are on WFH because they would still need to eat, spend money to relax, buy clothes, and many other things. They are helping other business sectors instead of spending most of their money on fares and fuel,” Pacquiao said.
Contrary to the DOF’s claim, Pacquiao said WFH arrangements “have no or have very little effect on the country’s micro, small and medium enterprises because BPO workers would still require their services even if they are working in their own homes.”
It seems PacMan is more knowledgeable about economics than the technocrats of DOF. Well.
Boo Chanco’s email address is [email protected]. Follow him on Twitter @boochanco
