A MEMBER of the opposition said on Thursday that wage hikes passed by regional boards are inadequate due to high inflation, and called on Congress to legislate more significant pay increases.
“This augmentation cannot make up for the decreasing value of wages due to continued increase in commodity prices,” Party-list Representative Arlene D. Brosas told a forum.
Wage erosion due to inflation is estimated in the regions at 28%, Ms. Brosas said.
The National Capital Region Tripartite Wages and Productivity Board in June approved a P40 increase in the daily minimum wage for Metro Manila.
Cagayan Valley received a P30 wage increase, Ilocos region P35, Central Luzon P40, and central Mindanao P35. The Western Visayas received a P30 increase, while hikes in the Southern Tagalog region ranged from P35 to P50.
Federation of Free Workers Vice-President Julius C. Cainglet noted that less than half of regional wage boards have approved wage increases since the start of the year.
“Under their own charter, when there is (an extraordinary) event, wage boards may increase wages twice in a year,” Mr. Cainglet said, noting that January and February inflation of 8.7% and 8.6% respectively, were not deemed sufficient to trigger a second wage review.
Domingo Mole, chairman of Bukluran ng Manggagawang Pilipino-Southern Tagalog (BMP-ST), said increases approved by the regional wage boards have kept wages below the poverty threshold.
According to the Philippine Statistics Authority, the 2021 poverty threshold as expressed in the monthly amount needed for households to not be classified as poor, is P11,957 per month. A person would need at least P2,391 monthly to meet basic needs in 2021, it added.
Eli Guzman, who also represents BMP-ST, rejected claims by business groups that legislated wage increases will cause companies to close down.
He cited the 2023 Investment Climate Statement on the Philippines by the US State Department, which concluded that companies in the Philippines close down due to poor infrastructure, high power costs, slow broadband connections, regulatory inconsistencies, weak bureaucracy, traffic, and corruption.
Kilusang Mayo Uno secretary general Jerome Adonis said higher wages will strengthen purchasing power and ultimately benefit the economy.
“With higher wages, (workers) will have the capacity to purchase basic commodities they need daily, and this will move the economy,” Mr. Adonis said.
The labor organizations reiterated their support for a bill proposing a P750 wage increase for all private-sector workers. It remains pending at the House labor committee.
The Senate labor committee approved “in principle” a bill calling for a P150 wage increase, Senate President Juan Miguel F. Zubiri said in May. — Beatriz Marie D. Cruz
ABOITIZ Power Corp. (AboitizPower) said on Thursday that it had renewed its retail energy partnership with Max Group, Inc.’s manufacturing arm No Bia, Inc. to supply 1.2 kilowatts of electricity.
In a media release, the listed energy firm said it had agreed to power No Bia’s food manufacturing and distribution center in Carmona, Cavite for the next four years.
“No Bia, Inc.’s dedication to evolving their menu offerings and enhancing their capabilities illustrates their unwavering commitment to leading the way in service excellence in food manufacturing and distribution,” said AboitizPower Retail Head James Byron Yu.
“It is AboitizPower’s privilege to support that with the clean and reliable energy it can and will deliver,” he added.
According to the company, the facility produces about 2,000 metric tons of food every month, supporting over 300 retail partner stores, as well as a local network of more than 600 stores in the country.
“Our partnership with AboitizPower mirrors our brand values [of being] genuine, thoughtful, and delightful. Leveraging on AboitizPower’s renewable energy not only allows us to serve countless Filipino individuals with our culinary offerings but also adds significant value to the Max’s Group’s mission,” said No Bia President Cristina T. Garcia.
The two companies had their first contract in November 2021 which is set to expire next month. The new contract covers November 2023 until December 2027.
AboitizPower aims to continue to invest in renewables in a bid to achieve at least 4,600 megawatts (MW) or 50% of its generation portfolio by the next decade.
The company has renewable energy projects with a combined capacity of about 1,000 MW that are in the pipeline through the development of wind, solar, and geothermal plants.
At the stock exchange on Thursday, shares in AboitizPower went down by P1.25 or 3.47% to P34.75 apiece. — Sheldeen Joy Talavera
SHANGHAI/SINGAPORE — Investors are making a tentative return to China’s beaten-down stock markets as the government opened the stimulus taps, including pressing a national fund for support, but they remain mindful the economy and sentiment are still fragile.
China’s benchmark CSI300 Index staged a moderate rebound from 4-1/2-year lows this week, after state fund Central Huijin Investment started buying exchange-traded funds (ETFs) on Monday, adding substance to the central bank’s pledge over the weekend to fend off financial risks.
Investors were also excited by Tuesday’s approval of an additional one trillion yuan ($136.76 billion) of sovereign bond issuance.
Drawing investors back into China’s $10.5-trillion stock market, particularly the foreign buyers that have fled in droves this year, would stem further slides in a market which fell to its lowest since 2019 earlier this week.
The policy efforts could also halt capital outflows and ease the yuan’s depreciation and a stronger market could help fund a rejuvenation of the world’s second-largest economy.
The fiscal stimulus “is injecting some confidence to an extremely pessimistic market that saw no hope in the economy,” said Huang Yan, fund manager of Shanghai QiuYang Capital Co.
QiuYang added some positions this week for short-term bets, but remained defensive as “the market needs time to find bottom,” Huang said.
Still, the rebound in China stocks was modest and trading remained thin, underlining Beijing’s challenge in reviving confidence dented by a stop-go economic recovery, a deepening property crisis, and heightened geopolitical tensions.
Huang is also wary of another selloff since further falls in stock prices could force leveraged investors to sell when they face margin calls.
The CSI300 index is down 18% from its peak this year in January while China’s currency is down nearly 6% so far in 2023.
This weekend the government gave a clear sign of market support when People’s Bank of China Governor Pan Gongsheng said China would prevent risk contagion in the stock, bond and foreign exchange markets, and ensure stability.
“China’s central government is endorsing the stock market,” said Qi Wang, chief investment officer of UOB Kay Hian’s wealth management division in Hong Kong.
“We see tactical opportunities” over the next few months, he said, citing some improvements in China’s economy, the Sino-US relationship, and fresh stimulus. But “I dare not say we are already at the bottom.”
Enlisting Huijin underscored the Chinese government’s seriousness about propping up the market after earlier piecemeal measures such as a cut in the stamp duty, reductions in trading fees, short-selling restrictions and curbs on share sales by listed companies’ large shareholders.
That support showed in markets this week as several ETFs, including the PB CSI 300 ETF and E Fund CSI300 Index ETF saw heavy inflows after Huijin announced its purchases in a statement, adding it would continue to do so.
China Asset Management Co. (AMC) said Huijin bought an estimated 10 billion yuan ($1.37 billion) of ETFs on Monday, and continuous buying would “effectively ease liquidity shortage and help stabilise markets.”
Huijin last bought ETFs during the 2015 stock market crash, and during the money market liquidity crunch in 2013. “The Shanghai stock indices were higher by more than 20% in three months both times,” analysts at Singapore’s United Overseas Bank wrote.
Even without the policy moves, some overseas investors are slowly coming back to Chinese stocks.
UK-based M&G Investments, which manages about $385 billion for individual and profession investors, is adding to its Chinese investments and likes sectors including automotive, renewable and shipping, said Fabiana Fedeli, M&G’s global CIO for equities, multi-asset, and sustainability.
“We do find opportunities in China, and opportunity is created by the fact that this market has been unloved for some time,” Fedeli said.
Still, China’s stock markets have to overcome earlier heavy selling from foreigners, burnt by Xi’s previous crackdowns on internet companies and other sectors, and its earlier stringent zero-COVID policy.
Goldman Sachs estimates forex outflows from China rose to $75 billion in September, 80% higher than in August and the biggest monthly amount since 2016. — Reuters
Nuvali in Laguna is Ayala Land’s largest eco-city development in the country unlocking the potential for future eco-communities in Southern Luzon.
This year, the real estate industry has placed a significant emphasis on recovery, as Philippine property developers are reaping the rewards of refined strategies honed during the pandemic. These strategies, adapted to overcome economic obstacles such as high inflation and interest rates, have proven to be successful in an economy on an upswing.
At the core of these emerging strategies is a focus on sustainability and digital transformation. Property developers are increasingly prioritizing environmental responsibility by incorporating green spaces, renewable energy sources, and innovative technology into their projects. Digital technologies, meanwhile, enable companies to engage consumers, enhance their customer experience, and streamline their processes.
Ayala Land, Inc. (ALI), a pioneer in Philippine property development, is at the forefront of these transformative strategies. ALI reported a 41% increase in first-half attributable net income, reaching P11.39 billion, and a 23% surge in real estate revenues, now standing at P64.52 billion, up from P52.32 billion in the same period the previous year.
Alveo’s Venare, situated in Calamba, Laguna is a residential community that encourages dynamic lifestyle choices by incorporating the aspects of sustainable development and recreation.
Residential reservation sales, which contributed significantly to these revenues, witnessed an 18% year-over-year increase, amounting to P58.3 billion. This surge was driven by AyalaLand Premier’s Ciela in Carmona, Cavite; Alveo’s Park East Place in Bonifacio Global City; Arcilo at Nuvali in Laguna; Parklinks South Tower in Quezon City; and Avida Towers’ Makati Southpoint.
Known for its consistent leadership in the Philippine real estate industry, Ayala Land continuously adapts to evolving market trends. The company boasts a diverse portfolio of real estate developments, including residential, leisure, commercial, industrial, and construction and property management services, a legacy built since 1988.
As ALI marks its 35th year in real estate, it has established a reputation for creating diverse property developments and shaping the real estate industry. The company’s extensive portfolio includes a variety of residential developments, ranging from luxury residences to sustainable co-living spaces across the metropolis. It offers innovative and affordable residential projects nationwide, complete with services and amenities, ensuring resident security and convenience near bustling economic centers.
In the office leasing segment, ALI has established a substantial presence with a total of 1.4 million square meters of office developments, with a substantial focus on serving business process outsourcing firms, a cornerstone of the Philippine economy. The launch of Clock In by AyalaLand Offices has introduced premium, contemporary office spaces tailored for diverse businesses, featuring shared workspaces, private offices, and meeting rooms at strategic locations like Makati Stock Exchange, Bonifacio High Street, and Bonifacio Technology Center.
Exploring Big Lagoon through kayaking is an incredibly enjoyable experience at El Nido Resorts by Ayala Land.
ALI also has a suite of leisure and hospitality projects that continuously contribute to the growth of the tourism sector. Seda Hotel has expanded to 12 properties around the country to include city hotels, resorts, and residential apartments, to serve travelers with its distinct brand of service. Raffles Hotel, a 30-storey luxury hotel building, now welcomes domestic and foreign guests with its charm and sophistication. Its resorts in Palawan and Sicogon also continue to be favorite island getaways. Its El Nido Resorts was recently recognized as among the best resorts in the world in the Conde Nast Traveler 2023 Readers’ Choice Awards.
Fostering economic growth
Ayala Land’s legacy is woven into the fabric of the Philippine real estate landscape, with 50 estates spanning mixed-use, tourism, residential, commercial, and industrial categories, catering to the social and economic needs of the Philippine real estate market.
One Ayala offers an engaging and diverse shopping and dining experience located in a top-notch intermodal transportation hub at the gateway of Makati.
In Makati, ALI completed One Ayala which includes the 40,000-square-meter BPO office building, East Tower and the One Ayala Terminal, a three-floor 20,000-square-meter modern intermodal transport hub designed to improve the commuting experience. It includes covered walkways and three terminal floors, which serves as a terminal for different transport vehicles, including buses, modern jeepneys, and Asian utility vehicles (AUVs), among others. Also within this integrated development is the One Ayala Mall which boasts six retail floors spanning over 43,000 square meters with more than 400 stores including dining outlets and offering a range of shopping options. It aims to create a premier destination for shopping, leisure, and events, offering a diverse array of experiences and amenities within the mall.
Also, in the middle of lifestyle options, ALI proudly presents the Samsung Performing Arts Theatre at the Circuit Makati, a venue that celebrates live entertainment and the Filipino talent.
Furthermore, ALI has expanded its high-end commercial developments in Quezon City, including Alveo’s High Park, Orean Place, and Ayala Land Premier’s One Vertis Plaza, along with the final tower in Avida Towers Sola, offering breathtaking green spaces within Metro Manila.
Well-positioned for change
Ayala Land continues to adapt to the evolving landscape of the Philippine real estate market, harnessing digital solutions such as virtual property tours and online reservation systems to enhance the home-buying process. Accessible online platforms have simplified the home-buying journey, with user-friendly websites enabling customers to explore ALI’s listings and take virtual tours.
Ayala North Exchange is designed to cater to the needs of both multinational corporations and BPO companies.
When it comes to sustainable building and eco-friendly policies, Ayala Land leads by example. The company’s commitment to sustainable development is evident through innovative solutions that reduce environmental impact and enhance quality of life for residents and visitors alike.
With over 957 hectares of green space in 26 urban estates, including 46 parks in established estates and 11 emerging estates, ALI is actively contributing to environmental conservation. The company also maintains 586 hectares of dedicated carbon forests within its properties and has adopted a global sustainability framework.
In developing and maintaining its properties, ALI employs energy-saving technologies, renewable energy sources, and green building features that promote energy efficiency and indoor air quality. Waste management strategies, such as waste segregation, composting programs, and recycling initiatives, are integral to ALI’s sustainability efforts.
A major component of ALI’s sustainability efforts is its constant collaboration with local communities. The company runs community-engagement initiatives that promote sustainability and teaches locals how to live sustainably, such as workshops, seminars, and outreach programs.
Ayala Land has been a pioneer of incorporating sustainable practices into its developments, products, and services. The company’s commitment to sustainability not only creates value for its customers, investors, and stakeholders but also contributes to environmental, social, and economic benefits for the public.
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Boards are becoming more concerned with an increasing amount of risks, according to the most recent EY Global Board Risk Survey. The list of ongoing risks — which included technology adoption and digital disruption — now includes geopolitical crises, supply chain upheaval, and remote working. These threats are also becoming more intertwined, and Boards need to build and encourage resilience in order to help organizations identify, assess, and successfully address them.
CHARACTERISTICS OF HIGHLY RESILIENT BOARDS Highly resilient businesses succeed because they can adapt, pivot, and prepare for potential and likely events (known as “gray rhinos”), even those that are beyond their control. Boards serve a crucial monitoring function by questioning presumptions and presenting thought-provoking “what if” questions. While boards cannot be expected to foresee which gray rhino is coming towards them, they can definitely set the tone to get ready.
Some boards consider risks to be “black swans,” which are defined as unpredictable events that have a significant impact, such as the COVID-19 pandemic or the 2008 global financial crisis. The concept of risks as known unknowns, or gray rhinos, gives highly resilient boards an edge, and they adapt their behavior in response to these risks.
The following characteristics of highly resilient boards are:
1. Informed confidence – Highly resilient boards are aware that management has the right systems, processes, and governance frameworks in place to scan the horizon and detect known, emerging, and interconnected risks — and they understand how these risks will impact strategic business objectives.
2. Agility – Resilient boards take a highly discerning and cautious view of their organization’s level of preparedness to respond to interconnected and ever-changing risks. They question and challenge confirmation and groupthink bias. According to the Global Risk survey, highly resilient boards are 1.6 times more likely to be confident in their ability to respond to unexpected high-impact incidents.
3. Humility – Highly resilient boards accept that both they and their organization need to continually update their skills and keep learning to ensure they keep an eye on the horizon while management keeps an eye on the ground in front of them.
Growing a high level of resilience is a joint obligation between management and the board, not just their task. There is space for improvement, according to the survey, since directors were less likely than CEOs to assess their firms as robust in a number of different categories.
KEY CONSIDERATIONS FOR BOARDS The survey shares that resilient boards are 1.8 times more likely to have high confidence in their organization’s data management procedures and technology risk framework, and 69% of boards have previously stated that they intend to increase their level of investment in data and technology for risk management. Modernizing governance and the use of technology in upskilling will be essential in building resilience.
The board should also keep in regular contact with C-Suites, especially the chief risk officer (CRO), given the many new and increased problems at play and the growing complexity of the risk landscape. Only 57% of board members said they regularly meet with their CRO when we asked how frequently they interact with C-Suites roles.
The increasing significance of the CRO and the necessity of CRO and board collaboration were topics covered by EY teams in the poll for 2021. This is still the case, and some people are now calling for the CRO to be permanently added to the board’s agenda. Whatever the topic, boards need to move away from the conventional perspective of risk management and mitigation and keep the following key considerations in mind:
1. Encourage a resilient culture – After disruptive occurrences, highly resilient boards put more emphasis on adjusting to the new reality than on getting back to business as usual. They put special emphasis on fostering all-around resilience in a variety of contexts, including governance, talent and culture, sociopolitical considerations, environmental sustainability, and technology.
2. Keep up with disruption and emerging risks – Utilize specialized board insight and discussion sessions to continuously monitor and evaluate the changing risk landscape that could have an influence on your firm. You should also seek the counsel of outside experts. Make sure there is a basic understanding of risk frameworks, especially on how technology can be used, as this will provide the groundwork for a resilience attitude.
3. Enhance cooperation with C-Suites roles responsible for significant risks – Recognize the crucial role C-Suites play in efficient risk management and think about giving existing committees responsibility for material risks. Engage the CRO and those in charge of the most significant risks to the organization more frequently. If this isn’t done, the organization may miss some of the most dangerous hazards, such as those gray rhino risks that are charging right at it.
NAVIGATING RISKS WITH RESILIENCE With the expansion and increasing complexity of the risk environment due to interconnection and accelerated disruptive shifts, boards can no longer simply react — they need to anticipate and adapt to emerging disruptions before they happen. By modernizing governance structures and adapting to emerging technology, they can improve their overall resilience to navigate risks and gain a competitive advantage.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co. and FINEX.
Wilson P. Tan is the chairman and country managing partner of SGV & Co. and the president of FINEX.
Last month, I gave a talk at the SCMAP (Supply Chain Management Association of the Philippines) Conference, where we discussed new technologies affecting the development of supply in our country. We remember that during the time of COVID-19, the supply chain became an integral part of ensuring the delivery of necessary food and medicine to the aggrieved parties.
The COVID-19 pandemic delivered a striking wake-up call to the world, emphasizing the critical role of effective supply chain management. We all experienced the frustration of delayed deliveries and empty store shelves as the pandemic disrupted global supply chains. From toilet paper to electronics and home office furniture, the pandemic laid bare the intricacies of these systems. It also spurred an urgency to find technological solutions to enhance supply chain transparency and mitigate bottlenecks.
Supply chains are notoriously vulnerable to a wide range of factors, from geopolitical tensions and cyberattacks to environmental changes and unexpected stockouts. This is where blockchain technology comes into play.
Blockchain, often associated with cryptocurrencies, is essentially a record of transactions on a shared, tamper-evident ledger. It provides a trusted and reliable way to record, validate, and view transactions across complex systems with multiple participants. This technology is increasingly seen as a game-changer for enhancing supply chain effectiveness.
To understand how blockchain benefits supply chains, we must first recognize that supply chains are intricate networks of interconnected businesses. Each participant adds value to a product or service as it moves through the network. Blockchain technology can record these transactions on a shared, immutable ledger, enabling the seamless exchange of data and value among participants. It serves as a single source of truth and can enhance transparency, visibility, and traceability across the entire supply chain.
Blockchain’s potential benefits are significant. It can reduce supply chain risks, increase visibility, and build trust within the complex supply chain ecosystem. Moreover, it complements existing systems and can interface with emerging technologies like the Internet of Things (IoT), smart contracts, and artificial intelligence, further enhancing security and efficiency.
AMPLIFICATION OF BLOCKCHAIN USE DURING THE COVID-19 PANDEMIC Predicting Supply Chain Risk: The pandemic highlighted the need for predictive risk management. Blockchain enables real-time monitoring and risk prediction, helping supply chain professionals proactively address potential disruptions.
ESG Tracking: Environmental, social, and governance (ESG) tracking became a critical aspect of supply chain management. Blockchain’s transparency and traceability features facilitate the monitoring and reporting of ESG data.
Enhancing Trust: As the pandemic revealed vulnerabilities in supply chains, building trust among stakeholders became paramount. Blockchain’s tamper-evident ledger ensures the authenticity of information and promotes transparency.
Reducing Supply Chain Risk: Blockchain offers a proactive approach to detecting and mitigating risks, reducing the likelihood of supply chain disruptions.
Increasing Visibility: The transparency provided by blockchain technology enhances visibility across the supply chain, enabling better decision-making and risk management.
Enhanced Security and Efficiency: Blockchain can interface with other emerging technologies, such as IoT, smart contracts, and artificial intelligence (AI), to enhance the security and efficiency of supply chain operations.
Traditionally, supply chain leaders had to rely on redundancy as a safety net to mitigate disruptions. While some redundancy remains necessary, blockchain offers proactive risk detection and mitigation capabilities, ensuring transparency, traceability, and trust. This technology is particularly beneficial for controlling emissions in resource-intensive industries, making the complex supply chain ecosystem more resilient.
THE ROLE OF BLOCKCHAIN IN THE POST-PANDEMIC WORLD As we move into the post-pandemic world, the lessons learned from COVID-19 continue to shape supply chain strategies. Blockchain technology plays a pivotal role in this new landscape.
Resilience: The pandemic exposed vulnerabilities in global supply chains. Blockchain provides resilience by enabling companies to proactively detect and mitigate risks. It acts as a safety net against unexpected disruptions, ensuring the continuity of supply chain operations.
Transparency and Traceability: Supply chain stakeholders, including consumers and regulators, now demand greater transparency and traceability. Blockchain’s tamper-evident ledger guarantees the authenticity of data, making it an ideal solution for meeting these expectations. It provides an immutable record of every transaction, from source to delivery.
Trust-Building: Trust is a valuable currency in the post-pandemic supply chain. Blockchain builds trust among all stakeholders by ensuring data integrity and transparency. This trust extends not only to business partners but also to end consumers who seek authentic information about the products they purchase.
Efficiency and Optimization: Beyond risk management, blockchain enhances supply chain efficiency. It can seamlessly integrate with other emerging technologies like the IoT, smart contracts, and AI. This integration streamlines processes and optimizes the flow of goods, services, and information.
Meeting Environmental Goals: With increased focus on environmental sustainability, blockchain helps control emissions in resource-intensive industries. It allows for the accurate tracking and reporting of ESG data, aligning supply chain operations with environmental goals.
In the post-pandemic world, businesses and organizations must adapt to a new normal where resilience, transparency, and trust are paramount. Blockchain technology offers a strategic advantage in achieving these objectives, transforming supply chains into resilient, efficient, and trustworthy networks that can thrive in the face of future challenges. It’s not just a technological solution; it’s a blueprint for a more resilient and transparent supply chain ecosystem. With SCMAP leading the charge, I look forward to a supply chain industry prepared to face future challenges.
Dr. Donald Patrick Lim is the founding president of the Blockchain Council of the Philippines and the lead convenor of the Philippine Blockchain Week. He is also the Asian anchor of FintechTV.
HOLCIM Philippines, Inc. said on Thursday that its two facilities in Luzon are set to be powered by Berde Renewables, Inc. with clean energy.
In a stock exchange disclosure, Holcim said it had signed a 20-year power purchase agreement with Berde Renewables for solar rooftop projects.
Berde Renewables will build, operate and maintain Holcim’s power systems in Bulacan and La Union with a combined capacity of 5.5 megawatt-peak and an annual generation of about 7.8 gigawatt-hours.
Holcim said the solar rooftop facilities are expected to be operational by 2024 and will help reduce its greenhouse gas emissions by 5,500 tons of carbon dioxide equivalent annually.
“Berde Renewables is proud to partner with Holcim to deliver clean energy to their plants and support their decarbonization goals. We will combine our end-to-end in-house capabilities, from project development and construction to operations,” said Patrick Zhu, chief executive officer of Berde Renewables.
The listed company also said it would continue to pursue its portfolio of low-carbon cement to accelerate its net-zero emission targets.
Horia Ciprian-Adrian, president and chief executive officer of Holcim, said the project further strengthens the company’s ability to support the Holcim group’s net-zero direction and the country’s nationally determined contributions.
“We thank Berde Renewables for this partnership and look forward to reaching new heights in decarbonizing buildings in the Philippines with their support,” he said.
Berde Renewables is the distributed energy platform of I Squared Capital, a private equity company engaged in infrastructure investments.
Berde Renewables develops, constructs, and operates distributed renewable energy projects. — Ashley Erika O. Jose
We’d like to establish an incentive plan for all employees starting January. We have a draft but we’d like to ensure that we’re getting it correctly. Please help us formulate a solid policy. — Blue Lagoon.
The first thing you should do is to know the best practices in your industry. If you’re in manufacturing, it’s better to learn from the policies and programs of other manufacturers that are of the same size, demographics of employees, among other factors. You can’t copy from irrelevant industries.
Why not? When people resign, they usually explore employment opportunities with your competitors. Conversely, these companies are attracted to their competitors’ employees who know the ins and outs of the industry and most likely their trade secrets as well. The attraction is mutual between your employees and your competitors.
No matter how you limit their options with certain conditions, including a non-compete clause in their quit claim, there’s no assurance you’ll be successful.
The next step is to conduct an internal survey that protects the respondents’ identities. You can do this in a week, excluding the compilation of results and analysis. Whatever the lessons from the survey, you can incorporate them in your draft.
The survey result should encourage higher levels of participation in the years to come. If there are changes needed, revise the policy as needed.
BASIC ELEMENTS You must be creative when confronted with the following questions: How would you encourage higher levels of participation? What do the employees want? Would they be satisfied with monetary or non-monetary rewards, or both? Knowing the answers to all this, you’ll be able to understand that an excellent incentive policy must be geared towards reducing attrition, increasing revenue, and improving productivity.
The trouble is that these may not be enough. People are motivated by different incentives. So here are the basic elements that should help you create the best incentive policy that addresses the needs of the most employees:
One, keep the policy simple and easy to understand. This requires connecting it to the performance appraisal system. The requirements for excellent performance should be outlined in the policy. There should be no need to create a policy independent of the appraisal system.
Two, recognize those who exceed expectations. Every department has clear minimum standards. For sales or production, this is easy to quantify with numerical targets. For those in human resources, accounting or marketing, the best approach is to create targets that can be easily be measured, like a cost reduction program.
Three, distinguish between individual and team accomplishments. This means having categories with different sets of requirements. This approach solves the highly contentious issue of who among the team members had the greatest contribution to any given accomplishment without undermining team dynamics.
Last, tangible rewards must be extraordinary. Don’t give out inexpensive plaques or trophies. Create gifts that are memorable to the recipients. It could be a combination of non-cash and cash rewards. Other variations of non-cash rewards may include sending the awardees on an all-expenses paid educational trip, or a home appliance that benefits the worker’s entire family.
For cash rewards, six figures (in pesos) or a certain percentage of the employees’ basic pay may be given. Note, however, that the cash reward is taxable and may reduce the net take home cash reward, unless the company pays the tax.
OTHER ISSUES Even with the most attractive reward and recognition program, issues will arise even if you think you’ve created a robust program. One story I’ll never forget is when the awardees joked about receiving another lapida, or tombstone, at an employee recognition ceremony.
This is why you should not take the design of trophies and plaques for granted. Your supplier can help you with this, but try to ensure you don’t get the most basic designs that can be easily replicated by the counterfeiters along C.M. Recto Avenue.
Another issue is the objectivity of the judging. While you can always appoint department heads to be the judges, it’s also worthwhile to consider outsiders like a management expert or a government official in charge of regulating your industry, or someone from the Labor department.
It’s not always easy. But you don’t have to perfect the system in the first year. You can always make improvements every year with employee input. If you agree with the suggestions, announce the changes and implement them right away.
Chat your workplace issues with Rey Elbo via Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com
Ayala Cinemas brings back Tim Burton’s Beetlejuice
AS PART of Ayala Mall Cinemas’ Thrill Fest of horror-themed movies, Tim Burton’s remastered Beetlejuice, an iconic Halloween favorite from 1988 which is currently marking its 35th anniversary, is currently being screened. The fantasy dark comedy stars Alec Baldwin and Oscar winner Geena Davis as a dead young couple who try to haunt the pretentious humans who have moved into their New England farmhouse by eliciting the help of a demonic wraith (Michael Keaton) they cannot control. This comic fantasy has a casting coup with Michael Keaton, Mr. Baldwin, Ms. Davis, Catherine O’Hara and Winona Ryder. The final film in the Thrill Fest line-up is Five Nights at Freddy’s which will open at Ayala Cinemas on Nov. 1. It follows Mike, a troubled young man who was recently fired and desperate for work, who agrees to take a position as a night security guard at an abandoned building.
Coke Studio PHL launches Season 7 lineup of artists
THE 7TH season of Coke Studio Philippines is celebrating musical diversity by introducing talents from across the country, generations, and genres. The new artists in its lineup are: BINI and Alamat, two of the hottest P-Pop acts of today; indie alternative rock band Dilaw from Baguio; the hitmaker dwta from Bicolandia; the trending hip-hop rap ensemble PLAYERTWO from Davao; and, from Cebu, Tawag ng Tanghalan grand champion Janine Berdin. Coke Studio is also teaming up with dance content creators Manu Torreno and Innah Bee, as well as the two-time world hip-hop dance champions, UPeepz. Viewers are invited to participate in this year’s performances by remixing or doing online collaborations with their favorite artists and dancers as they jam with the chorus cuts creatively crafted for this season. For more information, subscribe to Coke Studio’s YouTube channel.
ATARASHII GAKKO! releases new single
TOKYO-based four-girl progressive pop-group ATARASHII GAKKO! have returned with their new single “Tokyo Calling,” out today via 88rising. Opening with a doomsday-like alarm that continues as the central beat to the track, the song recognizes the harsh realities of daily life, even in their beloved home city. The group works its way to a euphoric chant of “we are marching!,” a catchy mantra meant for live audiences to scream back at them. “Tokyo Calling” arrives just ahead of the quartet’s first ever North American tour and is now available on all streaming platforms.
Goethe Institut holds 14th Science Film Festival
THE GOETHE Institut Philippinen has launched the 14th edition of the Science Film Festival Philippines, which is available for free online as video-on-demand (VOD) service and onsite at various schools nationwide from Oct. 25 to Dec. 1. Celebrated as one of the biggest and longest-running science events in the Philippines, the festival offers a roster of 34 science-related films in support of the United Nations Decade on Ecosystem Restoration. It aims to call for the protection and revival of ecosystems all around the world. For updates, visit goethe.de/ScienceFilmFestPh.
Asian hip-hop performer Awich drops new album
JAPANESE hip-hop performer Awich has released her newest album The Union. The title track of the same name — also the name of her first Japanese arena headline show on Nov. 5 — sets the theme throughout the 12-track album. Already released single “RASEN in OKINAWA” introduces other Okinawan rappers like Tsubaki, OZworld, Chico Carlito. Also included is the song “Kuchi Ni Dashite 2 (Say It All 2),” produced by KM. There are also songs featuring artists like Gadoro and BIM, and production from Trill Dynasty, Stuts, Jigg, and sty. Awich, short for “Asia Wish Child,” is a name she created to reflect her roots in Okinawa. Following the release of The Union, Awich will be releasing an album in English in early 2024 with a US tour to follow.
Romantic animé to screen at SM Cinemas
WINNER of the Paul Grimault Prize at the 2023 Annecy Festival, The Tunnel to Summer, The Exit of Goodbyes is a sweet romantic young adult coming-of-age animé film that entwines two young high school students from different backgrounds who share similar pains growing up. Things kick off when Kgaoru Tuono (voiced byOuji Suzuka) and Anzu Hanashiro (Marie Iitoyo) see each other while waiting at a train station. An Encore Film to be distributed by Warner Bros., it will open on Nov. 1 exclusively at SM Cinemas.
RESIDENTIAL PROPERTY prices in the second quarter rose at the fastest pace in three years amid high interest rates and rising inflation. Read the full story.
Buy a Toyota this month to get a chance to win another Toyota car!
Toyota Motor Philippines (TMP) is doubling the fun and excitement for its lucky customers with Double Your Drive Raffle Promo.
You can get twice the excitement by getting a new car in addition to the one you purchased, as Toyota is giving away 5 brand new cars this October. By getting your dream Toyota this month, you also earn a raffle entry for a chance to win an additional brand-new ride.
The Double Your Drive Raffle Promo is open to all customers who will purchase any new Toyota vehicles across TMP’s dealer network until Oct. 31, 2023. The mechanics are simple — you will be eligible to receive one raffle coupon after you successfully purchase any new Toyota vehicle within the promo period. Our friendly and reliable Marketing Professionals (MPs) will help you register your raffle entry.
The five lucky winners and their corresponding prizes will be drawn on Nov. 10, 2023. Raffle prizes include 1 Vios XLE CVT, 1 Corolla Altis GR-S, 1 Corolla Altis G, and 2 Wigo G AT. Winners will then be notified by their Marketing Professionals. Raffle winners are advised to only entertain raffle prize notifications from their trusted Marketing Professional from the Toyota dealership they had their transaction with. Winners will be given 90 days from the day of notification to claim their newest Toyota vehicle. Claiming of the vehicle will be at the same Toyota dealership where they bought the vehicle.
Don’t miss the chance to double your drive. Visit toyota.com.ph/promos/doubledrive to know more about the Double Your Drive promo and how you can get twice the happiness in mobility.
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