A little over a week ago, I wrote an article asking if Outsourcing is exploitation. In the end, I do not believe it is exploitation, and it seems that most, nearly all, readers felt the same way as I did. Of course, we want to always treat our employees in a fair way, and with respect, but the fact that wages are low here does not mean that the workers are exploited, in my view. As long as you are paying the market price for labor I don’t see how that could possibly be considered exploitation. And, when it comes to outsourced work, generally people pay a little more (or even a lot more) than the normal market price for labor in the Philippines.
Toward the end of that article, I mentioned that I had an idea regarding outsourcing that the “regular guy” reader might be able to employ to start a small business. Let’s talk about that today.
Here is what I got thinking about a few weeks ago. One of the common complaints that I hear from foreigners is that they have to send money to support the wife’s family in the Philippines. Why not use this for your advantage? Look, it’s a rule of thumb that if you marry somebody from the Philippines, you take on some responsibility for supporting the family. Most all of us support our Philippine family financially to one extent or another. Why not let them work for the money you send them?
Think about this… these people are family, so you don’t necessarily want to make them work for everything you give them. I mean, they are family, right? However, maybe by setting up something where they would have to do some work for the money you send to them, it will work toward their advantage. I am not trying to get religious here, but I think we all know the quote from the Bible about giving a man fish, or teaching him to fish, right? Well, why not let some of your family members learn some useful skills so that later on they can sell their skills on the labor market.
As an example, let’s say that you set up a small online business on the Internet. You sell some product or service. You are already sending your family in the Philippines $200 or $300 per month. Let them do work on your website in exchange for the money they are receiving from you! In addition to building a work ethic in them, they are also going to learn more Internet skills as they do the work and gain more and more experience. After a while, they can continue working on your site, but they can also take on jobs from others who will pay them for the work! Frankly, this is a win-win situation for you and for your family members here.
So many Filipino youngsters these days are going to school to learn computer skills, IT, Graphic Design or whatever, you should come up with some business that you can put up that will make you money, and also use the skills that your nephews or nieces are learning! It will make a little extra money for you, and it will make a little extra money for the family here too, in addition to giving them real world work experience.
If you live abroad, this “online” type of business will work perfectly for you. If you live in the Philippines already, there are other things you can do too. For example, Feyma has been doing work in Relocation Consulting. On some jobs, she needs some remodeling or construction work done. Feyma often hires people in her family to do the work. Now, you have to be the “boss” and keep on top of these people, family or not, to make sure you are delivering quality work to your customers, but in addition to Feyma making a nice chunk of money, she is also helping her family get a nice regular income too. What kind of business are you doing where you could use the skills of people in your Filipino family? It’s a perfect way of helping them gain a bit more income.
Another plus for you, if you are living abroad. Many of you who read this site are wanting to come and live in the Philippines like I do. Well, if you start some kind of online business while you are still living in the States, or wherever your home country is, use your family members here to provide inexpensive labor, you can build up the business in a way that a few years down the road you can move here and already have a thriving online business to support your life here! It’s a good situation to be in!
So, think about trying to outsource work to your Philippine family! If you are already sending money for support anyway, why not them provide you with a little added value for what you sent them? I think it’s a winning situation for everybody involved!
Bob
I totally agree with you on this one. One problem , for us anyway my Wives relatives are either Farmers or are very poor, undereducated, ignorant (not meant to offend). Other than giving seed money to start a SariSari store or help them pay off their oootang there is not much more we feel we can do.
In fact the two Brother and Sister abandoned street kids my Wife and I relocated when they were 3 and 5 yrs old and continue to help support only one of them has a job. He is a Farmer in San Francisco and does gold mining for any extra $$
Some day I will write a tear jerking story about these two kids.
Hi Neal – Yes, I can see how it would not work out in every case. However, many people have younger relatives whom they are putting through college, the kids are learning computers or whatever – those are perfect candidates for something like this. But, like you said, it doesn’t sound practical in your case.
since the beginning. 🙂
Bob- I think your analysis is sound, but that the problem comes in the implementation. You are situated here, and the family you employ are under your direct control [ please correct me if I got the wrong impression ] But without that constant supervision I doubt that things would progress as you would hope [ at least for the first few months]. Its like my kids and their homework-as long as I am on top of them it gets done. If I disappear for a few days its video game time ! lol
It has been discussed before about the need for a change in attitude for this country to even begin to catch up with the rest of the asian – and western/european world – in terms of productivity. Many times I see the attitude ” if we are getting the monthly remittance for not doing anything why should we bother to get a job ” ? I have heard that complaint from many OFWs who are supporting their families- sometimes for many many years.
I believe that in order for your idea to work [ and I DO like the idea !] it is necessary for the benefactor to be present- and in control. I just do not see it working by remote control ie while they are still living in another country
Hi ian – Well, it’s not perfect, but I also think that there are solutions in terms of the supervision end of things. If the work doesn’t get done, the money doesn’t come next time…. it just depends if the person on the sending end is willing to take that step or not, though. 😉
Why not outsource the direct supervision?
One might even be able to find someone who has the work ethic with which they are familiar and implement the desired level of direct supervision.
I have always wondered why outsourcing seems to be limited to labor alone, and not to management! 😉
Hi Paul – I know why the management end of the equation is never outsourced… want me to share it? Ha ha.. it’s because the managers are the ones setting up the outsourcing… they would never outsource their own jobs! 😯
Hi Jeff – Wow, that’s great! You are actually doing it?
Bob
I am looking into hiring someone to help me with my site. I finally bought a plugin to use as a cart but I need help getting it running and also to fine tune the site. We are coming to Davao/Digos June 22 for the summer- hope to visit you after we get settled in a bit. We have a new bundle of joy for you to meet.
Hi Kevin – Yes, I’ve been looking forward to your arrival in the Philippines! I’ve been following along with your plans through our mutual connection with Bebe! Can’t wait to see you and the family again!
BTW, if you don’t mind my asking, which plugin did you buy for your shopping cart? I’ve been weighing that myself, and can’t find a plugin out there for WordPress that I feel is really decent, shopping cart wise. I have tried out almost all of the major ones, but they all have flaws that I’ve found in testing them.
I used the WP eStore, $55.00 I got it working, just haven’t had time to get some products uploaded.
http://www.tipsandtricks-hq.com/wordpress-estore-plugin-complete-solution-to-sell-digital-products-from-your-wordpress-blog-securely-1059
Hi Kevin – Ah, yes, I am familiar with that one. Unfortunately, it doesn’t have the features I need to do the kind of store that I want to do. Thanks for the tip, though.
Hi Bob – Accountant/tax man hat on here. Nothing like good, solid, deductible expenses for labor costs without the requirement to contribute to other benefits. As independent contractors, those receiving the work, have the responsibilities to assure required benefits to their labor force that’s doing the work. As the provider of work, you only need pay the contracted price.
Of course, this method of moving benefits expenses has been around for a very long time. It’s only now that technology can make moving a manufacturing or other industrial job a reality. Look at check clearing houses – banks have “outsourced” their check clearing to a separate company for doing the processing “dirty work” for decades. Same goes for currency transportation.
Hi Paul – Good to take advantage of any savings that can be found! Now you made me think…. using the “support” money as a business expense would also play a positive role tax-wise.
Hi Bob,
I have a sister in law, her husband and their child that lives with us. I pay the sister in law to be my wife’s helper and her husband runs a small piggery for me. In the future we are planning a bigger piggery and he will be the manager. I will still monitor the daily activities, and the money, but he will direct the helpers in their tasks. We’re looking for land right now.
Hi Richard – Good luck on the piggery, I hope it works out well. That is a really Filipino business without a doubt. I have been thinking of getting into a similar venture myself.
Be careful Bob about the piggery ! I’ve heard more than one horror story. I financed one about 3 months ago – just a small one of 14 pigs, and 13 of them had something wrong with them and their legs broke and they had to be sold cheaply. The family cooked the last one but I was hesitant to eat it coz I didnt know what possible medical condition it might have lol
Hi ian – Sorry, but you mis-interpreted what I wrote, my friend. I said I was thinking of putting up a business similar in terms of it being a typical Filipino business… I have no plans for a piggery, though.
Got it !! Best to avoid the baboy anyway ! Unless of course its lechon baboy !! lol I’m particulary fond of crispy pata !
hi bob,
your article reminds me of an old saying
Give a man a fish and you feed him for a day, teach him how to fish and you will feed with for lifetime!
Hi dans – of course it does…. I mentioned that very saying in the article! 😉
Bob, I agree with your concept here but this:
“I think we all know the quote from the Bible about giving a man fish, or teaching him to fish, right?”
is not in the bible.
Hi steve a – I sure thought that was from the Bible, but I went and looked it up and you were right. It’s not in the Bible at all. Ha ha… thanks for keeping me honest! 😆
Hi Bob;
My wife’s brother-in-law (married to her twin) was working for me as a handyman. He stretched each job to the max to increase his pay. Later his wife came to my wife crying, and told her that he was stealing our building supplies. I was still working at the time, and was out to sea, and let the family handle the situation.
I still love his wife and the kids [I put his son and daughter through college) and they are here, at my house all the time. I’ve not said one unkind word about the man to any family member, and have said not one word to him, in ten years. Some people you just can’t help. He, out of our very large family was the only one, to ever do anything like that.
Hi Paul – It sounds like you have handled that situation pretty well. By not getting mad at him, but just not talking to him, you remind him of his misdeed every time you are silent! 😉
Hi Paul…. You are very lucky indeed,onely one wished i could say that. But we have a very large familey. Very hurtfull when you treat them so good,and get a dagger in the back. Can’t blame you for your fellings.
benn there maney times. Good luck
Some good ideas here, Bob. The hard part is to get someone you are trying to help to “catch the dream”. I can teach people ow to make money online, but where I fail is, I can’t get them to believe in themselves long enough to start learning.
Another point fokls should think of. Don’t try to solve the whole support/learning issue at once. Suppose you are sending $300 USD a month to help a family out.
Well starting from scratch to make a reliable $300 a month takes experience and quite a few hours of out and out work. But break the $300 into smaller segements … let’s say part of that $300 a month is P100 for monthly PhilHealth premiums
Staring a web business that earns P100 a month reliably is pretty easy, and in many cases you can get something up in an hour or two that will do that. The P100 may seem inconsequential at first, but it is after all, provides a useful service for the family, and most importantly, builds confidence.
Then find a way for your “outsourced” family member to earn, say, P500 a month to cover the family water bill perhaps.
Building a huge brick wall with thousands of bricks looks like a daunting task (and indeed it is) , but even a child can place one brick on the wall … and then another and another and another.
Hi Dave – Yes, if you start out and tell people they can earn $10k per month, the first month they won’t earn anything, they will be disappointed, and they will drop out and think that it was all a lie or a rip-off. However, if you start out small, as you suggest, with achievable goals, then it will get people actually earning a bit of money basically from day 1. I know you recall, but for the benefit of others, a couple years ago, I wrote a series of articles on another website entitled “Bob’s $1 per day project” in which I tried to show people how making a goal of earning just $1 extra every day would result in thousands of extra dollars in income every month after a year or two. I have personally done this and been successful at it. It’s a strategy for others to look at too, if they want to gain financial independence.
Maayong buntag Bob
I like your approach and have tried to use the same approach with my wife’s family. We started some businesses for my brother in law but we soon found out my brother in law was skimming all the profits. Our businesses are doing much better now after we learned a few good lessons and got my brother in law out of the business. If I can give any advice for some one trying to start a business or two to help support there in-laws it would be to start small and keep a close eye on the business.
Hi Larry – there is one basic difference in what you are talking about and what I am talking about. I am not talking about setting up a business for the family. No Sari Sari stores, nothing like that. I am saying that you (Larry) set up a business in your current location, and outsource some of the work to your family in the Philippines. They don’t have any money to manage, no inventory, nothing. They just get paid for the work they do. You have control over everything, they are just employees who do some of the labor for you.
Larry;
A brother-in-law stealing money? I’m profoundly shocked!
GREAT Idea Bob!
Thanks, Cheryll!
@Dave Starr:
Can you point me toward info on registering people for PhilHealth? From their website I can only locate employer registration forms.
Been There, Done That!!
A little background first, arrived in the PI in Oct 2001, been playing with computers since 1960, last job was teaching computer systems an CCNA, up till I pulled the plug 2001.
In 2002, met my wife, her niece was going to UC Cebu, taking IT, took one look at her books, and told her they were at least 20yrs behind. In 3003 she started staying with us, her family lived about 50K north of Cebu. Told her Industry Certifications were more important than an out of date college courses, offered offered to help her get Microsoft Certified Systems Engineer Cert. and CCNA Cert.. ZERO INTEREST!! A couple of months later she dropped out of school for a guy that took 6 yrs to graduate from high school.
Next setup a website in 2005, Trying to get my kids in the US interested in doing web based businesses. One works for DOD in advanced Computer Systems, the other used to re-hab web sites for for very large international companies, now is a systems administrator for a small company. Did not like all the travel. NO INTEREST!!!
Then in 2007 tried to get both Niece an Step-Son interested in doing web stuff. Both claimed to be interested in doing, after 3 months, checking their usage the only thing they were doing was going to Friendster and hustling, in her case guys, in his case girls.
THE PROBLEM WITH RELATIVES IS YOU CAN NOT MAKE THEM WORK, AN YOU CAN NO FIRE THEM
I DROPPED THE WEBSITE !!!
AS I SAID BEEN THERE DONE THAT!!
Right now wife and I are working on setting up a business on the internet, sell her products.
Hi Fredrick – Not trying to be mean or picky, but from the sounds of it, you’ve been there and done that, but you did it wrong! I am not saying set up a website and walk away to let the family do it. I am saying set up a website, run it yourself and “hire” your relatives to do work on it. You must supervise them. If they don’t do what you tell them, don’t give money! I don’t pay employees who don’t do what I tell them. I fire them from my company, relative or not. I train my employees to do what they are told. If they are not doing as instructed, I train them more, until they either do it, or I tell them that I’m sorry but I don’t need them any longer. Most of my employees are relatives, and I have been very successful in doing this. I’ve fired some, but most have been trained to do their jobs properly.
Teaching a maid or houseboy to do work, or somebody how to stock shelves in a sari sari store is entirely different than teaching someone to THINK.
In CCNA, if you misplace a comma you could shut down a companies entire connection to the internet. The OS is written in computer gibberish, no English.
Right now I run 3 flavors of linux 64 bit OS an 32 bit Vista OS in 1 virtual machine, I just got tired of having to do a restart to switch from one OS to another
I did not walk away, I showed them where all of the relevant information was on my computer, videos and written tutorials. Bookmarked all relevant sites in firefox. Was available for questions as to why I did this or that, on website, told them to try it their way an see what happened.
The purpose of an education is to learn to THINK, not to do things the same way today as you did yesterday.
To do work on a computer you have to THINK, such as accounting, which accounts to debit an credit. Had friend who had an internship with MNDOT, at the end of every day he would be about 25 million out of balance. At the end of 6 months they let him go.
To DESIGN web pages you have to THINK!!! A lot of web sites do not have an auto-responder, so you do not know whether they got your email or not
Was not paying them to learn, they did not have administrative access, but could see all the available source material. Would hire nieces partner to do work around the house and feed the whole family.
Let me just make sure if I am understanding you, Fredrick… are you saying that Filipinos are unable to think? That seems to be what you are saying.
NO, Teaching a person to THINK for themselves is entirely different, than say learning times 1 thru times 12 tables. It will be the same today as 100 years or ago, or 100 years from now, 12 X 12 will always be 144
Teaching just how useful the formula for a right triangle is requires THINKING, such as how to use for making sure your windows are good rectangle, or how long does the ladder need to be to get off the second floor balcony in case of fire
I think its all relative to the “relative” I have had mixed success. Currently I have an internet cafe that was setup for someone who has now decided she wants to get a job in the city after pretty much running it completely into the ground. Never mind as I will just do it myself at the same time look to use it for other things besides a basic cafe. The other issue is “picking” people who want to work, I have spent the last few months looking for people in the netcafe that I could put to work online and to be honest its not been fruitful most seem obsessed with Facebook and Youtube even offered “free”blogs, “Free” training and not one person has responded. So in Fredericks defence he is right. But at the same time of “having to monitor” people like you mentioned Bob I will be honest and say I have better things to do with my time. I have seen it so many times here where you turn your back and things start going down hill rapidly. I know people who take it in turn to sleep when the boss is out of the office.
I have had success with my mother inlaw but at the same time using other members has cost me a few pesos and time. As the trend is to try and abuse rather than work together. Now getting back on topic as regards salaries its not our problem if people think salaries are low because simply its all relative to lifestyles and costs of living. I get my lawn cut for P30 where a guy comes with a blade and does it by hand. Is it extortion? I didn’t set the rate he did and I don’t mind paying extra out of “choice” but you will often find people trying to take the moral high ground on salaries but to be honest I find Foreigners actually do more locally than locals do to improve things. Not just salary wise but in residential situations such as neighbourhood improvements, sponsering students etc. etc.
Hi Tropicalpenpals – (Is that really you name?) 😉 I have no problem with somebody saying that they don’t have time or inclination to monitor employees. However, if somebody says that starting a business doesn’t work, and they did not train or monitor their employees, well, they are not a true businessman. If a real businessman puts his money into a business, of course he will train his employees and have a system to monitor their work. It would be foolish to do otherwise.
Im Matt,
but I haven’t got a photo on here.. so as TP im easy to find everywhere online. The fact of the matter though is you can only take things so far if the person is no good. In my example the same person stopped working in December so she could “rest” as she didn’t like working for someone else. Which is why I put the netcafe up as its attached to the main house so not really hard work. Everything in there is automated and all the technical issues I deal with it literally would run itself if someone can be bothered to get out of bed to open the front door. Now the other thing is it was put on the side of the house for another reason “No rent” I needed to test the person out before moving it to a more prime location but has proved what I expected. Low will power and interest in anything that involves the word “work”. The staff are monitored and its that main factor is the reason of getting rid of her. At the same time the netcafe as a “netcafe” isn’t really worth my personal time. It was setup on a 50% profit share. Now I am having to take it over its resulted in a complete reshuffle of what I do including moving my office to the netcafe and also adjusting my sari-sari around the new setup.
Hi Matt – Thanks for sharing your name with us, it’s nice to know you. Because we get a lot of community discussion on this site, most of us try to use our real names, or if we are long timers here, we may have nicknames, but still names that people actually call us. We don’t just post the name of our site, it seems much more spammy when you do that. It’s up to you, but it just seems more friendly to use a real name.
Anyway, back to the issue at hand… I don’t know, in my 10+ years of living here, I have employed a lot of family, and non family people, and with proper training and proper supervision, I have not experienced a problem. If somebody refuses to do their job, I let them hit the road. If they do a good job for me, I am good to them, and they have a job as long as they remain productive.