Why Hiring in Traditional Locations Requires You to Hire One Level Above

When hiring talent in different countries, one of the key challenges that organisations face is ensuring the right skill set for the job. Hiring practices in the traditional offshore locations, such as the Philippines, have had to adapt to ensure the workforce aligns with onshore expectations. This has meant that you typically need to hire one level above to get the skills and experience you need. For example, if you need the skills of a Level 2 Engineer, you need to hire a Level 3 Engineer or sometimes even higher. This misalignment in experience is in stark contrast to Sri Lanka, where skill levels align with job requirements. But why does this happen, and what does it mean for businesses?

The Philippines: A Gap Between Skills and Job Requirements 

Many companies in the Philippines hire candidates who are overqualified for the roles they need to fill. This trend is driven by several factors: 

1. Skills-Experience Mismatch: There is often a discrepancy between the theoretical knowledge acquired in academic settings and the practical application needed in the workplace. As a result, employers compensate by hiring individuals with more experience or higher qualifications.

2. Quality Assurance in Performance: Companies mitigate risks associated with underperformance by bringing in candidates with advanced skills who can adapt to the role quickly, requiring less training and onboarding time.

3. Limited Middle Management Development: The country has a growing talent pool, but mid-level and senior management development programmes are not as widespread as in other markets. This leads to businesses seeking talent with greater experience to fill the gaps in leadership and decision-making skills.

4. Cultural and Economic Influences: The job market in the Philippines is competitive, and companies often look for a “safe bet” in hiring. Additionally, salary expectations are relatively flexible, meaning companies can attract overqualified candidates without significantly inflating payroll costs.

Sri Lanka: A Better Alignment Between Skills and Job Levels 

In contrast, Sri Lanka's workforce tends to be more closely aligned with job expectations. Several reasons contribute to this difference: 

1. Strong Vocational and Industry-Linked Education: Sri Lanka has a well-developed vocational training system and university programmes that emphasise industry-specific skills. This ensures that graduates are better prepared to enter the workforce at the appropriate level.

2. Emphasis on Skills Development: Employers invest significantly in training and upskilling their workforce, ensuring that employees can meet job expectations without requiring higher qualifications than necessary.

3. Clear Career Progression: The Sri Lankan job market follows a structured approach to career growth, where employees typically advance based on merit and experience rather than being placed in roles they are overqualified for.

4. Cost Efficiency in Hiring: Businesses in Sri Lanka focus on cost-effectiveness, ensuring that employees are placed in roles suited to their skills to optimise productivity while maintaining fair compensation structures.

What This Means for Businesses 

For companies looking to establish or expand operations offshore, understanding these hiring dynamics is crucial:

In the Philippines, organisations should anticipate needing to hire above the required skill level to ensure performance and minimise training investments. This may lead to potential challenges in employee retention, as overqualified employees may seek opportunities that match their expertise. 
In Sri Lanka, businesses can expect a workforce that meets job expectations more closely, reducing the need for hiring above requirements and leading to more stable employee retention and satisfaction.

Ultimately, companies should tailor their hiring strategies to local labour market conditions to maximise efficiency and workforce effectiveness. By understanding these differences, businesses can make informed decisions that enhance their recruitment and talent management processes.

To discover more about how the right offshore team in the right location can accelerate your business, contact Dijital Team today.

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