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As an entrepreneur or business owner, you must understand the best practices for managing human resources in the Philippines. HR is an essential part of any organization, and when done right, it can help you attract, retain, and develop the best talent in the market. In this article, I will provide you with everything you need to know about HR best practices in the Philippines in 2023.

Why are HR Best Practices Important?

HR best practices are essential because they can help you create a positive work culture, improve employee engagement and productivity, reduce turnover rates, and mitigate legal risks. By following HR best practices, you can ensure that your organization complies with labor laws and regulations, treat your employees fairly and equitably, and foster a culture of respect, diversity, and inclusion.

When Should You Implement HR Best Practices?

You should implement HR best practices as early as possible, ideally when you are still in the planning phase of your business. However, if you already have an existing business, it is never too late to start. Implementing HR best practices can help you solve existing problems, prevent future ones, and create a more sustainable and competitive organization.

Where Should You Implement HR Best Practices?

You should implement HR best practices in all aspects of your organization, including recruitment, onboarding, training and development, performance management, compensation and benefits, employee relations, and compliance. HR should be integrated into your overall business strategy and aligned with your goals, values, and vision.

How to Implement HR Best Practices?


Recruitment is the process of identifying, attracting, and hiring the best candidates for a job opening. To implement HR best practices in recruitment, you should:

  • Define the job requirements and qualifications clearly
  • Use multiple sourcing channels to reach a diverse pool of candidates
  • Use pre-employment assessments to evaluate the candidates’ skills, knowledge, and abilities
  • Conduct structured interviews to assess the candidates’ fit with the job and the organization
  • Provide timely feedback and communication to the candidates throughout the process
  • Ensure compliance with labor laws and regulations, including equal employment opportunity and data privacy.


Onboarding is the process of integrating new hires into the organization and helping them become productive and engaged quickly. To implement HR best practices in onboarding, you should:

  • Develop a comprehensive onboarding program that covers the essential information and skills that the new hires need to know and do
  • Assign a mentor or buddy to guide the new hires and answer their questions
  • Provide regular feedback and coaching to the new hires to help them adjust and improve
  • Use technology to automate and streamline the onboarding process, such as online orientation, electronic forms, and e-learning modules
  • Create a welcoming and inclusive environment that values diversity and respects individual differences.

Training and Development

Training and development are the processes of improving employees’ skills, knowledge, and abilities to perform their job better and prepare them for future roles and responsibilities. To implement HR best practices in training and development, you should:

  • Conduct a training needs analysis to identify the skills gaps and development opportunities for each employee and the organization
  • Develop a training plan that aligns with the business goals and the employees’ career aspirations
  • Use a variety of training methods and techniques, such as classroom training, on-the-job training, e-learning, coaching, and mentoring
  • Evaluate the training effectiveness and the return on investment (ROI) of the training programs
  • Encourage continuous learning and development through feedback, recognition, and career growth opportunities.

Performance Management

Performance management is the process of setting expectations, giving feedback, and evaluating the employees’ performance and potential. To implement HR best practices in performance management, you should:

  • Set clear and specific performance goals and expectations that are aligned with the business objectives and the employees’ job responsibilities
  • Provide regular feedback and coaching to help the employees improve and reach their goals
  • Use a fair and objective performance appraisal process that considers the employees’ achievements, behaviors, and potential
  • Provide development and growth opportunities to high-performing and high-potential employees
  • Address performance issues promptly and constructively, using progressive discipline and coaching techniques.

Compensation and Benefits

Compensation and benefits are the rewards and incentives that you offer to your employees in exchange for their work and contribution. To implement HR best practices in compensation and benefits, you should:

  • Develop a competitive and fair compensation and benefits program that reflects the market trends, the employees’ skills and experience, and the organization’s financial resources
  • Communicate the compensation and benefits program clearly and transparently to the employees, including the total rewards package, the pay structure, the performance incentives, and the benefits coverage
  • Use a performance-based pay system that rewards the employees based on their contribution, merit, and achievement
  • Offer a comprehensive and affordable benefits package that meets the employees’ needs and expectations, including health care, retirement plans, insurance, and leave benefits
  • Monitor and evaluate the compensation and benefits program regularly to ensure its effectiveness and alignment with the business goals and the market standards.

Employee Relations

Employee relations are the interactions and relationships between the employees, the managers, and the organization. To implement HR best practices in employee relations, you should:

  • Create a positive and respectful work environment that values diversity, inclusion, and collaboration
  • Communicate openly and transparently with the employees, including the organizational changes, the policies and procedures, and the performance expectations
  • Address the employees’ concerns, grievances, and conflicts promptly and fairly, using a constructive and solution-focused approach
  • Foster a culture of trust, mutual respect, and accountability, where the employees feel empowered and engaged to contribute to the organization’s success
  • Ensure compliance with labor laws and regulations, including the labor standards, the workplace safety, and the data privacy.


Compliance is the adherence to the legal and regulatory requirements that govern the employment relationship. To implement HR best practices in compliance, you should:

  • Understand and comply with the labor laws and regulations that apply to your organization, including the labor standards, the workplace safety, the data privacy, and the employment contracts
  • Provide the employees with the necessary information and training to comply with the laws and regulations, including the rights and responsibilities, the benefits and entitlements, and the reporting procedures
  • Monitor and review the compliance practices regularly to ensure their effectiveness and alignment with the legal and ethical standards
  • Seek legal advice and guidance when necessary, especially when dealing with complex and sensitive issues such as termination, discrimination, and harassment.

Key Takeaways

In summary, HR best practices are critical for the success and sustainability of any organization, especially in the competitive and dynamic business environment of the Philippines in 2023. By implementing HR best practices in recruitment, onboarding, training and development, performance management, compensation and benefits, employee relations, and compliance, you can create a culture of excellence, engagement, and innovation that attracts and retains the best talent and drives your business forward. Remember to always prioritize your employees’ well-being and growth, communicate openly and transparently, and comply with the legal and ethical standards.

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