Expanding your real estate operations in the Philippines involves choosing between utilizing an employer of record Philippines service or directly hiring employees. This choice significantly influences your market entry speed, costs, and level of operational control.
The Philippines real estate market is growing rapidly, attracting international companies. With 26 years old as the median age, it’s a dynamic workforce. The country also has high English proficiency, ranking 22nd among 116 countries, demonstrating competence. However, understanding and complying with the local legal landscape can be complex.
This guide will help real estate companies choose between an employer of record in the Philippines and direct hiring. You’ll learn which option suits your goals, timeline, and budget.
Understanding Employer of Record Philippines Services for Real Estate Companies
An employer of record Philippines provider becomes the legal employer for your workforce while you manage daily operations. This arrangement has gained popularity in recent years.
When you partner with an EOR, they handle critical functions such as:
- Payroll processing and administration
- Benefits management
- Tax compliance
- Employment contract management
- Immigration support (some providers)
- Employee onboarding and offboarding
- HR and labor law compliance
- Workforce risk management
- Workplace safety and health compliance
For real estate companies, this means focusing on property development, sales, and client relationships while employment tasks are handled by EOR solutions in the Philippines. This model is ideal when you need to enter the market quickly, without establishing a legal entity first.
Direct Hiring Philippines: Requirements and Processes for Real Estate Firms
Direct hiring in the Philippines involves establishing a legal entity and employing your workforce directly, offering full operational control. This approach requires significant upfront investment and time for setup. For real estate companies, direct hiring includes several steps:
- Establishing a legal entity, such as a corporation or branch office.
- Securing the necessary permits and licenses for operations.
- Setting up payroll systems and employee benefits packages.
- Creating employment contracts that meet legal compliance requirements.
- Implementing tax withholding processes for employees.
The Philippines has regulations that can add complexity to real estate operations, including compliance and property registration requirements. Managing these independently can be challenging when hiring Filipino employees directly. But partnering with an employer of record in the Philippines can help streamline the process and ensure compliance.
Employer of Record vs Direct Hiring: A Comprehensive Comparison
When comparing employer of record vs direct hiring, several key factors come into play. Let’s examine them in detail:
Setup Requirements and Timeline
The setup time can be a critical factor, especially for businesses looking to expand quickly. An EOR service allows companies to onboard employees in a shorter timeframe. This will make it a flexible option for organizations entering new markets or scaling operations efficiently.
Cost Structure Analysis
The financial considerations for these two approaches vary based on business needs and operational requirements:
Direct Hiring Costs:
- Initial business registration and setup fees
- Ongoing compliance and regulatory expenses
- Administrative and operational overhead
- Legal and consultation fees
- Office infrastructure and setup costs
- In-house HR and payroll management
EOR Service Costs:
- Per-employee service fees (typically a percentage of salary)
- Administrative and compliance management charges
- Benefits and payroll processing fees
For real estate firms testing the market, the EOR vs direct hire in the Philippines cost comparison favors the EOR model. Eliminating large upfront capital requirements preserves cash flow for essential investments, like property acquisitions or development. With EOR services managing compliance and employee benefits, administrative burdens are also reduced.
Related post: The Ultimate Guide to Outsourcing to Philippines for Real Estate Operations in 2025
Legal Considerations for Real Estate Companies in the Philippines
The Philippine legal framework for employment encompasses several key areas that impact your hiring decisions:
Constitutional Provisions:
- Restrictions on land ownership
- Limitations on foreign investments
- Protection of employment rights
Employment Laws:
- Compliance with the Labor Code
- Social security requirements
- Healthcare benefits for employees
- Tax regulations and responsibilities
For real estate companies, additional considerations include:
Property Sector Regulations:
- DHSUD compliance requirements
- Real estate practitioner licensing
- Property registration protocols
Foreign Ownership Restrictions:
- Requirements for land lease arrangements
- Corporate structuring regulations
Tax and Labor Compliance:
- Taxation for foreign employees
- Labor outsourcing restrictions
- Compliance with work permits and visas
To reduce these risks, many companies choose an employer of record Philippines service. The EOR provider handles legal compliance, ensuring your company stays compliant while minimizing administrative work. With an employer of record in the Philippines, your business focuses on core operations without worrying about complex hiring regulations.
6 Key Employer of Record Services That Benefit Real Estate Operations
Quality employer of record services offer several benefits specifically valuable to real estate companies:
1. Compliance Management
EORs stay updated on changing regulations affecting real estate operations, including property laws and employment standards, ensuring compliance. With an employer of record in the Philippines, you gain local knowledge and updates on Philippine labor laws, ensuring smooth operations.
2. Flexible Workforce Management
Real estate projects often have fluctuating staffing needs. EORs allow you to scale your team up or down quickly, avoiding the burden of hiring and layoffs.
3. Local Market Expertise
Leading EOR solutions providers offer insights into local real estate practices, salary benchmarks, and talent acquisition strategies. This helps align your business with local industry standards while tapping into the regional talent pool.
4. Risk Mitigation
EORs serve as the legal employer, absorbing employment-related risks like wrongful termination claims, benefits disputes, and compliance issues. With an employer of record in the Philippines, risks are managed, minimizing exposure to legal issues from local labor laws.
5. Streamlined Payroll and Benefits Administration
EORs handle payroll, tax compliance, and benefits administration, ensuring accurate payments and relieving your HR team of administrative tasks. This simplifies payroll management across various projects, providing peace of mind for your real estate business.
6. Scalability and Expansion Support
For companies expanding into new regions or countries, EORs offer immediate access to local talent without establishing legal entities. This makes entering the Philippine market easier by streamlining hiring and compliance with employer of record Philippines services.
Leveraging these services allows real estate companies to focus on their core operations while outsourcing employment complexities to trusted EOR partners.
Top EOR Solutions Philippines: Providers for Real Estate Companies
When selecting an EOR solutions Philippines provider for your real estate operations, consider these top options:
- Global EOR Specialists
- Offer comprehensive services across multiple countries, providing standardized processes for various industries.
- Lack specialization in the real estate sector, potentially impacting industry-specific needs.
- Philippines-Focused Providers
- Have deep knowledge of local regulations and strong networks within the Philippines.
- Possess specialized understanding of the real estate sector’s unique requirements, ensuring relevant solutions.
- Real Estate Industry Specialists
- Provide tailored services for property development and management companies, addressing industry-specific needs.
- Offer expertise in real estate staffing and roles, ensuring relevant and targeted solutions.
When evaluating providers, look for those with:
- Proven experience working with real estate clients and delivering successful outcomes.
- Transparent pricing models to ensure clear financial expectations.
- Strong compliance records, adhering to industry standards and regulations.
- Technology platforms that streamline management and simplify processes.
- Local support teams familiar with the specific challenges of the real estate sector.
Choosing the right employer of record in the Philippines ensures streamlined operations, reduced administrative burdens, and compliance with local laws.
Related post: Industry-Proven Scalability: CORE’s Dedicated Real Estate BPO Services Sets a New Standard
Real Estate Hiring Philippines: Market Trends and Opportunities
The real estate hiring landscape in the Philippines offers unique opportunities shaped by economic growth and workforce demographics.
Market Trends:
- Demand for Green Building Expertise: There’s a growing need for professionals skilled in sustainable design and green building practices, aligning with global standards.
- Need for Digital Marketing Specialists: The competitive market drives demand for experts in digital marketing for effective property promotion.
- Adoption of PropTech Skills: Integrating technology in real estate operations increases the need for professionals with PropTech expertise.
Workforce Demographics:
- High technology adoption rates
- Strong English language proficiency
- Growing remote work adoption
These trends position the Philippines as an attractive destination for real estate companies seeking modern skills at competitive rates. Leveraging employer of record Philippines services streamlines hiring, ensuring compliance with local laws. Whether through such services or direct hiring, accessing this talent pool supports business growth in the real estate sector.
Implementation Strategies for Successful Hiring
Regardless of your hiring approach, effective strategies are essential for maximizing success. Here’s how to optimize your hiring strategy:
For EOR Implementation:
Define Clear Objectives
- Identify roles and responsibilities for each position to ensure clarity.
- Set performance expectations for consistency and accountability.
- Establish communication protocols for smooth information flow.
Select the Right Provider
- Evaluate the provider’s industry experience for reliability and expertise.
- Check compliance track records to ensure legal adherence.
- Review technology platforms for efficient collaboration and management.
- Assess support service quality for responsive assistance.
Establish Integration Processes
- Define reporting structures to streamline progress tracking.
- Create communication channels to foster team collaboration.
- Develop performance management systems to monitor goals.
- Plan for knowledge transfer to ensure team continuity.
For Direct Hiring Implementation:
Legal Structure Setup
- Consult legal experts familiar with Philippine employment and real estate regulations.
- Establish a proper corporate structure to ensure compliance.
- Secure the necessary permits and licenses for operations.
HR Infrastructure Development
- Create compliant policies and procedures to meet legal requirements.
- Develop competitive compensation packages to attract top talent.
- Establish efficient recruitment processes to speed up hiring.
- Build performance management systems to ensure employee growth.
Compliance Management Systems
- Implement regular audits to maintain compliance with local laws.
- Create clear documentation protocols for transparency.
- Develop ongoing employee training programs to enhance skills.
- Establish update monitoring systems to track regulatory changes.
Employee Benefits and Support
- Tailor benefits packages that align with local and international standards.
- Offer consistent employee support, including onboarding and training.
- Implement employee retention strategies to boost morale and engagement.
Effective implementation requires careful planning and execution. Whether using an employer of record from the Philippines or direct hiring, align strategies with your business goals for success.
Making the Right Choice for Your Real Estate Company
The decision between using an employer of record services provider and direct hiring depends on factors specific to your business. Knowing when to use each option ensures a smooth, cost-effective expansion into the Philippines.
Choose an EOR When:
- You need rapid market entry without delays from setting up a local entity.
- You have limited capital and want to minimize establishment costs.
- Your headcount is small (typically under 15-20 employees) and needs flexibility.
- You’re testing the market and want to keep risk low.
- You want to minimize compliance risks with local labor laws.
- Your operations have fluctuating staffing needs, requiring flexibility.
- You need payroll and tax management without internal infrastructure.
- You want to ensure compliance while focusing on core operations.
Choose Direct Hiring When:
- You’re committed to long-term operations in the Philippines with a strong presence.
- You require full control over recruitment and employment processes.
- Your headcount is larger and ready for logistics management.
- You have the resources for establishing a local entity, including offices and staff.
- You want to build a strong local brand and dedicated team.
- You plan to acquire property assets directly, managing local operations.
- You understand local labor laws and can handle direct employment complexities.
Many real estate companies start with an employer of record Philippines service for rapid market entry, then transition to direct hiring as they grow.
Strategic Hiring for Real Estate Success in the Philippines
Choosing between an employer of record Philippines service and direct hiring affects your real estate company’s speed, costs, and control. For most real estate companies entering the Philippines, having an EOR provider offers a fast, cost-effective solution to begin operations. This strategy allows you to focus on your core business while the EOR handles complex employment and regulatory requirements.
Choosing the right EOR ensures compliance, reduces administrative burden, and provides flexibility in managing your workforce and operations. With the right EOR, you can minimize risk while scaling your operations efficiently and effectively. Whichever path you take, understanding the legal landscape, costs, and operational details is essential for success in the Philippines market.
Frequently Asked Questions (FAQs)
Q1: What is the main difference between an employer of record and direct hiring?
An employer of record Philippines provider serves as the legal employer while you maintain day-to-day management. Direct hiring requires establishing your own legal entity and directly employing your workforce, giving you complete control but requiring significant upfront investment and time.
Q2: How long does it take to set up direct hiring operations in the Philippines?
Setting up direct hiring Philippines operations typically takes 3-6 months, including entity establishment, securing permits, and creating compliant employment systems. In contrast, using an EOR can have you operational in days to weeks.
Q3: What are the capital requirements for establishing a real estate company in the Philippines?
Capital requirements for real estate businesses in the Philippines can vary widely based on business type and foreign ownership percentage. Partnering with an employer of record (EOR) provider allows companies to operate without the need to establish a legal entity, potentially bypassing these capital requirements.
Q4: What compliance risks exist when hiring in the Philippines?
Compliance risks include labor code violations, tax reporting errors, benefits administration issues, and industry-specific regulations. When comparing employer of record vs direct hiring, note that EORs assume much of this compliance risk on your behalf.
Real estate companies often face the dilemma of whether to hire directly or work with an Employer of Record (EOR) provider in the Philippines. Choosing an EOR can simplify recruitment, compliance, and payroll management, while allowing you to tap into top talent without the hassle. CORE offers expert real estate services, including lead generation, marketing, and reliable back-office support. Let us help you optimize your operations—partner with us today for seamless growth.
