• The customer is always right… even when they are wrong.
• The customer is always right… until they are wrong.
• The customer is not always right.

The answer is near the end of this article but, for now, suffice it to say that nobody is always right. Customers and clients are never always right, BUT…

Businesses want clients to feel they are right

Client expectations can range from the simplest to the simply impossible. There are times when expectations are valid, but sometimes they are unrealistic. When faced with the latter, the immediate options are: (a) plainly tell them it is not within the company’s power to fulfill the expectation, or (b) try to fulfill the expectation as best as one can.

The problem with the first is you risk losing that client. To some businesses, that is all well and good riddance, but that still means one less client. With the second option, the company could try everything in its power and yet still come up short in the eyes of the client – begging the question, was it worth it?

In whatever case, sometimes the goal is not in responding to a client’s issue to a T, but in keeping the client satisfied with the response or action taken. Often, a client wants assurance that somebody is taking care of their needs.

What are the proven ways of managing client expectations?

Remember that client expectations are not within the company’s control – but the response is. Even when the client is not right, never make them feel they are wrong. That is where effective client expectations management comes in.

Here are several effective practices used by various businesses to manage client expectations.

Be client-centric

Managing client expectations starts with creating a fantastic experience for them. Put your client front and centre. Let them know this and make sure to let them feel it as well, not just in word but also in deed.

Whether they are wrong or right, clients bring companies their revenues. This is why companies try their best to make clients feel satisfied even when they are not right.

Know every client

It is really not just knowing your clients but understanding them in every way. This is different from understanding your market and more about knowing each client. Find out where they are coming from in every instance. Answer questions such as:

• What does this client need?
• What does the client want?
• How has a particular client interacted with the company in the past?

A company that understands its clients will be able to anticipate their questions and concerns.

Communicate clearly

Be crystal clear and perfectly honest about what the company can and cannot do, will and will never do, right from the start, even before they sign up with the company.

Effective communication will avoid frustration for both the company and the client. It can also prevent unpleasant experiences.

Always relate positively

Exert efforts to build and maintain positive relationships with all clients. When a client feels only positive emotions when dealing with a company, they will trust the company with their business. This will also make it easier for the company to achieve client satisfaction.

Also, avoid directly contradicting clients even when they are not right. Instead of saying, “That’s wrong,” one can say, “What I’m hearing is so-and-so is not working for you. Can you tell us more about it?” Let the client explain, then shift to explaining how other aspects of the issue are also at play.

Understand the entire issue

Avoid getting boxed in with stereotypes. Every client is unique and every issue is unique. When speaking with clients, actively listen and never assume they have exactly the same issue as another client with a similar concern.

Listening is also a way to let a client know that the company sincerely wants to understand them. Take in every detail. Ask questions to clarify when needed.

Discuss solutions

Be upfront. Clients do not like feeling left in the dark and not knowing what is happening behind the scenes. Openly discuss solutions with them.

Let clients understand how complex a problem can be. This will help eliminate unrealistic expectations.

Train client-facing team members to become highly knowledgeable about client concerns and the company’s available solutions.

Have a realistic timeline

Nobody likes waiting, but worse than waiting is being given a turnaround time that is later not met. Provide clients with a timeline that is realistic both to the company and to the client. Businesses may control customer service expectations by explicitly expressing how long each given activity will take, to the best of their knowledge, from the time the client reaches out until the resolution is complete.

Give regular updates

Providing updates at each stage of the resolution process is much appreciated by clients. This is also a simple but effective way of managing expectations. Again, people would like to know what is going on rather than just waiting and not knowing what to expect.

What are the post-pandemic trends in managing client expectations?

Clients today are looking for more efficient service. Doing business has transformed as much as new technologies have accelerated the way everything is done.

People now have more access to information and influencer opinions. Social media has made mass communications instant. E-commerce and B2B are now more agile than ever.

Companies are now operating in fast-paced work environments. Those who are not able to keep up will surely get left behind in the dust. What can companies do to more effectively manage client expectations in today’s world?

Know your clients “personally” and accurately

It is no longer enough to know and understand clients. With the use of data management and analytics, companies are better able to have access to every client’s records. There is no excuse, for example, for not being aware of how a client had interacted with a staff member who may happen to be unavailable the next time the client makes a follow-up. Having a client repeat an issue every time they speak with someone else in the company creates a negative and frustrating impact on them.

Respond faster

Speed has never been a better equaliser than today. Clients expect faster response times and turnarounds. This is where the terms nimble and agile come into play. Fortunately, new technologies are allowing businesses to let AI and chatbots take over under certain conditions.

Set up 24/7 self-service options

Take advantage of available automation tools so clients can opt to find answers on their own. FAQ pages, chatbots, ticketing systems, or even interactive voice response (IVR) systems can spell the difference between keeping or losing a client.

Provide more channels

One reason clients expect quicker responses is the availability of different communication channels. It used to be just email, which now seems to have taken a backseat to ticketing systems and faster channels like chats, social media, and messaging apps.

Be careful, however, to be consistent across all those channels when handling a client concern. Clients should receive the same quality of service whatever the platform. Remember also that clients see all of those channels under one brand, not as separate entities.

Be mobile-friendly

Among the different channels, perhaps the most important thing to realise is that people nowadays tend to use those that are on mobile. Make sure you have at least one mobile-friendly channel and expect clients to be always on business mode even when they are on the road, while travelling abroad, or even when on vacation.

Be one step ahead

Be proactive. Stay at least one step ahead of the client and the competition. We cannot overemhasise the need to understand your client and anticipate their needs. A business that is one step ahead of the client is two steps ahead of the competition.

Build a caring culture

Beyond being client-centred, steer the whole organisation toward a culture of caring about what clients care about. When such a culture is established and well-ingrained across the entire company, putting the customer first becomes second nature. It will also result in sincerity in desiring to provide satisfaction even when dealing with a difficult client.

Get better and better

There is no one-size fits all approach to client expectation management. Just as every client is unique, every business is also one of a kind. Methods that worked in the past may no longer work today, and strategies that are effective now might not be as effective next year. It is therefore important to always keep updating and enhancing policies and processes for handling client expectations.

Which is true?

We promised to answer this at the start of the article: Which of the versions below is closest to the truth?

• The customer is always right… even when they are wrong.
• The customer is always right… until they are wrong.
• The customer is not always right.

Our answer: The client is not always right, but a company must still do everything within its means to provide client satisfaction, though never at the expense of having to bend over backward. Even when a client becomes dissatisfied with the company’s response to their expectation, never burn bridges and leave the door open for a past client to return.

How we can help

Profitmaster cares about the firms that come to us in the same way that they care about their clients. Do you want to know more about how we can help you handle your clients and their expectations? Send us a message today.

The PSA explained that the primary driver for faster inflation was the higher annual growth rate in the index for food and non-alcoholic beverages, which was up from 7.4 percent in September to 9.4 percent in October 2022.

The report also highlighted higher price index increases in housing, water, electricity, gas and other fuels (7.4 percent), restaurants and accommodation services (5.7 percent), and other commodity groups.

High inflation rate in 2022 means higher staff pay in 2023

Speaking in a briefing held by the Office of the President in October, socioeconomic planning secretary Arsenio Balisacan noted, “Our analysis shows sustained increases in inflation in 2022 and 2023 will cause a slowdown in the economic growth.”

Inflation is expected to bring not just a slowdown in economic growth. Salaries are also projected to increase in the following year. According to advisory firm Willis Towers Watson (WTW), salaries in the Philippines will increase by 5.7 percent in 2023, citing findings from the WTW 2022 Salary Budget Planning Survey Report – Asia Pacific (July 2022 edition).

WTW’s Work & Rewards Leader (Philippines) Patrick Marquina noted that “compounding economic conditions and new ways of working are leading organizations to continually reassess their salary budgets to remain competitive.”

The Philippine situation is not unique. Workforce consulting company ECA International predicted that inflation will also cause salaries to increase in countries such as India, Vietnam, China, and Brazil.

How companies can prepare for salary increases

“With such a dynamic environment, it’s imperative for organizations not only to have a clear compensation strategy but also a keen understanding and appreciation of the factors that influence compensation growth,” Marquina advised.

WTW’s survey indicated that, for 2022, 52.5 percent of employers in the Philippines prepared salary increase budgets that were higher than projections. They cited the following reasons for doing this:

• Tighter labor market concerns,
• Cost management concerns (e.g., rising cost of supplies), and
• Employee expectations for higher pay increases due to inflation.

While salary increases can improve employee retention and attract higher-quality staff, some companies introduce incentives and non-monetary benefits to encourage workforce talent to stay or apply with them. Those benefits can be in the form of:

• Workplace flexibility
• Stronger emphasis on diversity, equity, and inclusion
• Sign-on bonuses and incentives
• Remote or hybrid work setups
• Improved employee experiences

For companies that need guidance

Readiness levels may differ for various companies with regard to the projected salary increases in 2023. If you need help in preparing for upcoming situations, Profitmaster can provide guidance, especially for companies that are considering outsourcing some business functions or hiring offshore employees. Message us today and we can discuss this with you, with no commitment required on your part.

Cost-cutting Strategy

Outsourcing has been fully embraced by businesses like ours as a viable cost-cutting strategy. As businesses look for ways to cut costs in order to stay afloat, outsourcing has become a profound way to do so. In fact, companies stand the chance of saving up to 90% of labour costs while still paying decent wages to its outsourced workforce. According to additional research, businesses can save nearly half of their total operating costs by outsourcing specialised work operations such as accounting, customer service, content writing, shipping and logistics, and information technology. If there is one takeaway from all of this information, it is that outsourcing effectively offloads some of the costs, allowing a company to focus its resources on core competencies and growth initiatives.

Philippines—Outsourcing Destination

The Philippines is a popular global outsourcing location. Because of its large pool of highly skilled workers and English speakers, the country has become a popular choice for companies looking to offshore their business processes. Profitmaster will increasingly rely on outsourced services as it grows since the Philippines and Australians speak the same language and have similar sensibilities.

We believe that expanding our operations to this country is the best outsourcing choice we can make. Here are reasons why you will, too.

Impact of Outsourcing on the Workforce

Even though many businesses have reaped the benefits of outsourcing, others are still wary of hiring workers from other countries. However, contrary to the belief that local workers may lose job opportunities as a result of outsourcing, there are numerous opportunities available to them. Here are a few examples of how outsourcing benefits the workforce:

• Outsourcing reduces work

  When employees have too much work to do, it is nearly impossible for them to meet their objectives. Local employees can focus on what they do best by outsourcing and allowing others, in this case, their Filipino counterparts, to handle the rest of their business.

• Local hiring will continue

  While we outsource some tasks, we continue to hire new employees to supplement our existing in-house workforce. There are still core tasks that require local workers to complete, so there will always be job opportunities in the company’s primary location.

• Opportunity for advancement

  Investing in employees’ education and training is a wise business decision. Outsourcing some of the work frees up time for in-house employees to learn new skills and develop a greater level in their field. As a result, they’ll be well-prepared to take advantage of any opportunities for advancement within the company that may arise.

• Improvement in communication and collaboration

   It allows our employees in the Philippines to work in a multinational environment. Because they will be working with people of different nationalities, they will improve their communication and collaboration skills while also broadening their perspectives. Members of the team will not only become better employees, but also be more inclusive individuals from the diverse environment.

• More accessibility

   Outsourcing allows organisations to gain access to skilled workers and a larger talent pool, as well as a more diverse talent market. This is especially important for companies looking to hire highly specialised employees. Outsourcing companies such as Profitmaster specialises on pooling the best applicants for the role.

• Job opportunities will expand

   Outsourcing helps people who would not have found work otherwise. New jobs are also created, such as copy editors and medical transcriptionists, expanding the pool of possible jobs to which people can apply.

Outsourcing—Here to Stay

The Philippines is one of the most popular global outsourcing destinations, and its importance in the industry will only grow. Outsourcing enables businesses to tap into a diverse talent pool in order to achieve business objectives more efficiently. As a result, outsourcing will continue to influence how we work in the future by redefining what it means to be an employee and, conversely, an employer today.

Know More About Us

Profitmaster, like many other companies, is looking for ways to remain relevant and effective without exhausting your resources. This is the primary reason we’re finally taking the plunge and outsourcing to the Philippines. Have we piqued your curiosity? Then please learn more about us here.

This is his view regarding salaries of professional staff working for Australian accounting firms for 2023 and beyond.

Salaries in the Philippines

Salaries in the Philippines are generally trending higher, and this has become particularly noticeable in the Business Process Outsourcing (BPO) sector,  one of the fastest-growing industries in the country. While the average salary for employees (all industries) is currently growing at a rate of 5.5% per annum, and is expected to continue throughout 2023, some sectors are experiencing higher growth. 

Over the past 6 months, salaries among some experienced professionals have  grown by 40%, sometimes more. For comparison, since the start of the pandemic, the salary of a 3+ years’ experienced intermediate accountant (business services) in Brisbane has grown by around 33%.

While some of this Philippines’ growth is due to seasonal factors, an emerging trend to engage staff directly as a work-from-home staff is also creating very high pay expectations.

However, this salary growth is having little impact on the demand from Australian accounting firms seeking to outsource their processes to the Philippines. If staff are not available in the home country, there is little choice but to look more broadly afield.

Mr Domingo said there are a number of other factors affecting salary trends for accountants in the Philippines.

Employees with a higher education are demanding more than those with a lower education. Demand for BPO workers with degrees in accounting, technology, engineering, and mathematics will continue to be high in 2023.

Employees with existing BPO industry experience are asking for higher salaries than those seeking to join the sector. Australian employers are willing to pay more, especially for staff with five or more years of experience.

Employees with special skills typically earn more. Firms are willing to pay more for workers with specialised skills in tax, audit, business services and insolvency

Notwithstanding the high rate of wage growth in the Philippines, Mr Domingo says that hiring staff is still hugely cost-effective as Australian firms continue to hold high levels of trust for quality providers and their workers in the Philippines.

Despite increasing salaries, Australian professional firms are still saving more than 60% on labour costs through outsourcing, while at the same time recognising the importance of offering competitive salaries and benefits in order to attract and retain the best people available.

Connect With Us Today

Labour costs account for a sizable portion of total operating expenses. By outsourcing some of their services, companies can further bolster their financial health. However, determining where to start, how much capital is required, finding the right location, and establishing fair salary rates based on salary trends in the Philippines make it seem like a very daunting challenge. That is where we at Profitmaster come in. We can assist you in making the outsourcing transition as smooth and hassle-free as possible. Learn more about us by clicking or tapping here.

The term was coined by Dr. Anthony C. Klotz, Professor of Business Administration at Mays Business School in Texas. According to Dr Klotz, events like the pandemic are making people step back and rethink their lives and careers. 

How is this being played out? In October, the Washington Post reported that 20 million Americans resigned their jobs between April 2021 and August 2021. According to the US Bureau of Labor Statistics (BLS) a record 4.3 million people resigned in August alone. 

This astonishing trend is affecting the Philippines BPO sector in a different way, where employment is very different from that in the wealthy Western economies. For a start, the absence of social security and unemployment benefits means the luxury of walking out of jobs is not available to most people in the Philippines. 

Australia is experiencing its own significant labour shortages, and this is most evident in the professional accounting services sector. In October, the Australian Financial Review (AFR) reported that three-quarters of Australia’s largest accounting firms say they are having trouble recruiting and retaining staff. 

The AFR’s view is “the shortage is compounded by the country’s closed borders, hindering the ability of firms to import staff, even as client demand remains strong.” However, it is far too easy to say the shortage is because Australian firms have soaked up the entire market of accountants and bookkeepers. It is not just border closures, the problem is exacerbated by increasing staffing costs creating staff churn where people change firms for improved salary and career development opportunities. Other issues are in also in play, such as staff leaving the profession because employers are unable to commit to full time work from home arrangements.  

This has created an enormous opportunity for Australian businesses to engage with professional BPO providers such as Profitmaster. The Philippines is a developed Asian jurisdiction where access to a huge pool of young graduates and experienced professionals, competitively priced and unaffected by closed borders, is available to work seamlessly across the world.  

Liza Arcila, Human Resources Manager

• Market insights platform Clutch reported that at least one business process is outsourced by 37% of small enterprises.
• Tech firm IDAP said 92% of the Forbes Global 2000 companies use IT outsourcing and 59% use business process outsourcing (BPO).
• Consulting firm Deloitte forecast global outsourcing spending to reach $731 billion in 2023.

In the Philippines, the IT and business process management industry is expected to have a compound annual growth rate (CAGR) of up to 5.5% between 2020 and 2022. Read on to gain a better view of outsourcing in the Philippines.

The Philippines’ outsourcing landscape

As of 2021, Asia Pacific had around 60% market share of the global service industry. The Philippines remains popular as a primary offshore location. Outsourcing has become a major driver of the Philippine economy and its BPO industry contributed 9% to the country’s gross domestic product (GDP) in 2021.

Josh Howarth, co-founder of Exploding Topics, cited that the Philippines’ two biggest selling points are a highly capable workforce and a low cost of living. He also noted that companies outsourcing to the Philippines can achieve 70% savings in labour costs.

According to Colliers, companies are attracted to outsourcing in the Philippines because of “Filipinos’ soft skills, including customer support, English language proficiency, and cultural affinity.” It also cited that the Philippine BPOs now employ 1.44 million full-time employees and have garnered $29.1 billion in revenues in the first half of 2022.

The IT and Business Process Association of the Philippines (ITBPAP) sees a robust future for the outsourcing industry as well: “The growth of the Philippines’ IT-BPM industry will be enabled by accelerated digital transformation, robust ecosystem, skilled workforce, and strong government support.”

How Profitmaster stands out

Companies looking to outsource have a wide array of options when looking for an outsourcing company. It is thus important to conduct sufficient research when considering one. Here are a few things to consider when looking for a suitable outsourcing partner:

• Professional expertise: What are the company’s strengths? What services does it offer?
• Outlook: How does the company view your business? What are its core values?
• Reputation: What do their clients say about the company, both positive and negative?
• Budget fit: How cost-effective will their services be?
• Data security: How can the company ensure data security?

Also, consider the following factors that BPO company Profitmaster is becoming known for:

Service expertise

Profitmaster is an Australian-owned company that provides offshore and outsourced business services. The company specialises in:

• Accounting and Bookkeeping
• IT Management and Support
• Administration Support
• Marketing and Customer Service

High-quality staff

Recruitment and staff selection is crucial to building the right team members for our clients. We hire high-quality offshore staff that can be onboarded in 21 days or less. Once onboarded, we conduct induction training. Employees also undergo regular training, as necessary. Every staff member is provided with all the needed equipment, IT, and VoIP connectivity.

Open communication

Profitmaster ensures that we build and maintain a long-term relationship with clients that allows them to focus on their core business. Each client has direct and full access to our General Manager, who makes sure the relationship thrives by taking care of all client concerns.

World-class workplace

Profitmaster operates from a dedicated, world-class office facility at Clark, Pampanga, Philippines. Staff work in fully-equipped workstations with high-speed internet, backed by a full-time IT support team and on-site operations managermanagement staff. Our facilities also include:

• 24-hour CCTV cameras
• High-level computer and data security
• Staff log-on/log-off software
• Training and meeting rooms
• Commercial-grade VOIP telephone numbers
• Dialling capacity of up to 8000 calls per day

Secure location

The Clark Freeport and Special Economic Zone was formerly the largest foreign US airbase in the world. It has its own international airport with daily flights to major destinations in Asia. The Profitmaster office is within a banking and commercial sector, about ten minutes from the airport. There are accommodation options, resorts, and other facilities within a few minutes of the office.

Clark is located 80 kilometres north of Manila, which is a distance of around two hours by car. It is 1.5 to 4 hours from major Asian destinations. From Australia, Clark is accessible from all capital cities, and from Gold Coast through Singapore.

Helping Australian firms to outsource

Finding a reliable outsourcing partner can be difficult. Profitmaster drives the success of companies seeking to outsource in the Philippines and can help any company to:

• Look at existing process and workflow design
• Analyse what functions can be outsourced
• Map out a strategy to achieving goals through outsourcing

Take your first step into having more profits by outsourcing.