This document is circulated for the participants of the 7th ECOP MGM and should NOT be used for
commercial presentation purposes partially or in its entirety without EXPRESSED permission from the
Author Mr. Arturo Guerrero III or HRManagement & Business Solutions Inc.
Managing the RIGHT Manpower MIX
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
What is Manpower mix?
It is the result of a systematic process
of identifying the workforce competencies
required to meet the companies
Strategic goals.
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
But
before you manage
your manpower mix,
you must plan it first
Your manpower plan may be based on
demand, targets and strategic goals of
your company.
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Aims of Manpower Planning
Right
Types
To plan for the
right numbers and the
Right
right types of people NumbersAnalyze Right
at the right places
Places
and the right times
Right
Times
Source:ICAEW-Dec-09-Workforce-Planning
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Steps in Manpower Planning
Analyze your current manpower inventory
Analyze
Forecast
Forecast the manpower you need
Develop employment programs
Develop
Design
Source:ICAEW-Dec-09-Workforce-Planning
Design training programs
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Current business trends and issues across the globe
Many industries are in the
midst of a major change
evolution, where having the
correct workforce in place
is the critical gap between
success and failure.
Source: ICAEW-Dec-09-Workforce-Planning
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Workforce trends
Trends that have an impact on the shape and expectations of the workforce.
01
02
03
04
 Ageing
 Skills and qualifications gap
Companies need an
agile solution to meet
their rapidly evolving
needs
 Higher costs for scarce skills
 Changing career patterns
and expectations
Source: Tomorrow’s Workforce haygroup.co.uk
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Major Industries affected by workforce trends
Oil & Gas
Energy
Source: Tomorrows Workforce haygroup.co.uk
Services
Healthcare
Tele-communications
Manufacturing
Finance
Presented by: Butch Guerrero
Consumer
goods
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Your manpower mix should be a
combination of internal flexibility with the
use of service contractors to address
fluxes in demand.
Source: Ciett Adapting to Change
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Payroll
Demand Level
Contingent
Contingent
Traditional Workforce
Time
Your Manpower mix should be managed based
on the needs and opportunities that arises from
the evolving market
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Current workforce scenario
In the Human Age, the
old rules of business are
giving way to the new.
Today, technology and capital
no longer guarantee success.
Service Contractors can provide
you with innovative workforce
solutions that your company
needs.
Source: Manpower Group.
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting Then and Now
Then
Companies outsourced
administrative functions like payroll,
paying firms to manage them.
Source: Manpower Group
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting Then and Now
Now
Then
Today, companies bring service
contractors in their businesses along
with the skills, visibility and expertise
in a worry-free package.
Source: Manpower Group
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting Today
The permanent presence
of Service contractors ensures
that the company can
adjust its workforce strategies
and processes fast, often
and seamlessly.
Source: Ciett Economic Report 2013
Fast
Often
Seamlessly
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting is not only in the Philippines
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting is a Global Trend
Source: Ciett Economic Report 2013
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting addresses the 5 rights of
workforce planning
Ensures you have the right
number of people
Right
size
paying the right price
for the required skills
Assess the gap in skills
that will be needed to
meet future goals
Tomorrows Workforce haygroup.co.uk
Right
cost
Right
skills
Right
shape
Right
place
Identifies inefficiency
and to establish a
balance of workforce
Ensures the required
staff resources are
available in the right
location
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Security of Tenure Bills pending in Congress
1. House Bill no. 124 “ An act strengthening the security of tenure of employees”
2. House Bill no. 573 “An act strengthening the security of tenure of workers in the private
sector”
3. House Bill no. 2419 “An act strengthening employees security of tenure”
4. House Bill no. 2955 “An act addressing the issue of labor contractualization by providing
standards for term or fixed period employment”
5. House Bill no. 3559 “An act strengthening the Security of tenure”
6. House Bill no. 3560 “An act Criminalizing Labor-only contracting”
7. House Bill no. 4227 “ an act Providing for omnibus amendments to the Labor Code of the
Philippines by amending the provisions on discrimination against women, security of tenure
and rights of workers to organize”
8. House Bill no. 4396 “ An act prohibiting contractualization and promoting regular
employment”
9. House Bill no. 5140 “An act prohibiting contractualization and promoting regular
employment”
10. House Bill no. 5415 “An act specifying the requirements of legitimate contracting
subcontracting”
11. House Bill no. 5416 “ An Act defining the causes of termination of employment ofPresented
workers”
by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting does not abuse
the Filipino workforce
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting
promotes employment and
helps the Filipino workforce
find jobs that shape their future
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Service Contracting plays an active role in facilitating transition in the
labor market
From
unemployment
to employment
From
education
to employment
Between 2 jobs
Be a stepping
stone to find
a job
Gain
experience
to prepare
entry in the
labor market
Keep an
activity and
strengthen
experience
and training
Source: Ciett Economic Report 2013
From any
situation to
temporary
work
Match a
professional
activity with
a goal to a
flexible way
of life
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Essential points of Department Order 18-A
Trilateral Relationship
Employer
employee
relationship
Employee
Contractual
relationship
Service Contractor
Client Company
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Essential points of Department Order 18-A
Net Financial Contracting Capacity (NFCC)
Refers to the financial capacity of the Service
Contractor to carry out a job work or services sought
to be undertaken under a service agreement.
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Essential points of Department Order 18-A
The minimum Admin fee of 10% based on total direct cost
10%
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Essential points of Department Order 18-A
Registration fee of
Php25,000.00
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Essential points of Department Order 18-A
Minimum paid up capitalization of
Php3,000,000.00
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Essential points of Department Order 18-A
Security of Tenure
-
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Essential points of Department Order 18-A
Safe and healthful working conditions which is subject to routine inspection
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Companies
D.O. 18-02 & D.O. 18-A Transition
6,000
5,000
4,000
3,000
2,000
1,000
D.O. 18-02
D.O. 18-A
Source: DOLE
Year 2012
Year 2013
4,809
862
2,916
2,742
As of October
2014
526
4,487
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Companies
Total list of Companies with
D.O. 18-02 & D.O. 18-A
5,800
5,600
5,400
5,200
5,000
4,800
4,600
TOTAL
Source: DOLE
Year 2012
Year 2013
5,671
5,658
As of October
2014
5,013
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
When appropriately regulated
Service Contracting represents
an embodiment of Decent work
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
To Summarize
Service Contractors are better than other
Labor Service providers
Better
Results
Better
Better
Access
Match
Service contractors operate
on a nationwide basis and are
not limited to several regions
Analyze
Better
Skills
Source: Manpower Group.
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Contributions of Service contracting
 Provide work to job-seekers
 Reduce illegal & undeclared work
 Improve the labor market fluidity
 Help in the creation of jobs that would not exist otherwise
 Act as a stepping stone for permanent employment
 Enhance workers’ employability
 Works hand in hand with the Government
 Help disadvantaged groups of people to enter the labor market
 Contribute to economic growth and government budget
Source: Ciett
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Choosing the right Service Contractor
DOLE D.O. 18-A
Registered
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Certificate of Compliance
COC
Refers to a certificate issued by
the Regional Director to a labor
laws compliant establishment
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
Tripartite Certificate of Compliance with Labor Standards
TCCLS
A certificate awarded by DOLE
to an establishment that has been
verified by the tripartite certification
committee as compliant with




Labor standards,
Occupational Safety and Health Standards
Child-Labor Laws
Has no pending case with DOLE
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
A member of an Association which promotes both
Employers’ and Workers’ welfare
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
A member of PALSCON
PALSCON, is an association of legitimate
service contractors organized primarily to
further the cause of the government and
labor sectors.
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
An established Service Contractor with years of experience
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015
THANK YOU
Presented by: Butch Guerrero
National President, PALSCON
7th ECOP Members’ General Meeting
March 19, 2015