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Full-Time Employee (FTE)

Definition

Full-time employee definition

A full-time employee (FTE) is used to describe someone who is exclusively employed by a company. This employee may work for forty hours a week or more, which could be equivalent to day-time business hours. 

A full-time employee (FTE) is also privileged with statutory benefits that are provided by the employer.

The Philippines is one of the countries where the BPO industry flourished greatly. It has since opened many job opportunities for the people, employing about 1 million alone within the outsourcing industry. 

In the outsourcing industry, a full-time employee can have varying working shifts to accommodate the clients’ timezone.

Outsourcing full-time
Outsourcing full-time

Importance of designating FTE status

Distinguishing employees between “full-time” and “part-time” is important because part-time staffers typically do not receive the following:

  • Paid time off for holidays or vacations
  • Employee benefits 
  • Employer retirement plans.

Designating full-time and part-time status to your staff can also affect whether your workers are considered as salaried or hourly, and exempt from taxes or not. This can also determine how you pay your workers for their overtime shifts. 

This is why it’s crucial to understand the difference——and how many hours part-time and full-time employees typically work—before hiring employees at your small business. 

However, as a business owner, you have to be careful not to discriminate by making some workers in similar jobs part-time while others in the same job are full-time. 

Denying benefits to part-time employees who work in the same range and hours as your full-time staff can have consequences depending on your local laws.

Importance of designating FTE status

Outsourcing full-time

Outsource Accelerator provides you access to great full-time dedicated remote staff that you can outsource from the Philippines starting from $6 per hour, where you can save up to 70% on staffing costs

We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500 BPOs… all designed to make it easier for clients to learn about, and engage with outsourcing.

Outsourcing FAQ

What is Payroll?

What is payroll?

Payroll can refer to three things: 1) the calculation and distribution of paychecks; 2) the record of wages, taxes, contributions, and withholdings of employees; and 3) the total amount paid to employees by the company.

Payroll is important in different ways. For employees, the payroll is important for living expenses, and a timely or late paycheck can spell the difference between good and bad morale.

For businesses, payroll is important to see the actual net profit for the fiscal period. For business owners, a properly done payroll is important for compliance with the law. For this reason, many businesses entrust their payroll to dedicated professionals who can process them with speed and accuracy.

Outsourcing payroll services

One of the more popular outsourced functions is the payroll process. Because of the importance of having an efficient payroll, companies that can afford to do so tend to outsource it to dedicated professionals.

Outsourcing companies in the Philippines are experienced with the Generally Accepted Accounting Principles (GAAP) that are being followed in the country they are servicing.

Outsource Accelerator connects you with payroll firms that have extensive experience with the regulatory framework in the US and have a proven track record in accuracy and timeliness in payroll delivery. We make it easier for clients to learn about, and engage with payroll outsourcing.

How payroll is processed

The payroll process nowadays usually involves utilizing payroll software for more efficient and accurate handling. Yet, most small business owners still handle their payroll functions manually, especially when they are starting.

Before the payroll processing begins, employers should prepare the requirements given by their employees such as their tax and financial information. They would also need to secure their employer identification number (EIN) to ensure that deductions such as payroll taxes and employee benefits are accounted for.

The following are the steps for payroll processing.

Choose an effective payroll schedule

First, choose a payroll schedule that can work best for a business. Some of the most popular pay schedules include the following.

Weekly. Businesses can pay their workers on a specific day of the week, regardless of the date. For instance, payroll can be given every Thursday or Friday. Bi-weekly. In another variation of the weekly pay, businesses can provide payroll on a specific day every two weeks. Semi-monthly. Semi-monthly pay is the most common payroll schedule used in most countries. Employers pay their workers twice a month on two specific dates. Monthly. Lastly, employers can provide employee wages every month on a specific date.

Pay schedules are usually affected by an organization's practice and the legal compliances for pay frequencies in a certain location.

Calculate employee's gross pay

Depending on an organization's practice, an employee's gross pay can either be fixed or based on their daily or hourly wages.

For the daily and hourly workers, employers should calculate the total number of hours or days an employee has worked in a pay period. A time tracking software can best benefit them for this.

Firms should at the same time consider overtime hours, late logins, leaves, and absences when calculating. Overtime calculations and other additional charges may depend on the country their employees are in.

Identify deductions

Gather knowledge of the different deductions that employees are subject to. In the United States, the different deductions applicable for employees include the following.

Federal taxes/tax withholdings State taxes Social Security 401(k) contributions Workers compensation

Different states and countries collect different taxes and deductions. With this, employers should be mindful of the policies of each country where their workers sit. This would be easier with a reliable payroll provider on their side.

Calculate net pay and process payments

Subtract gross pay to the applicable deductions for each employee. The amount left after deductions will be the employees' take-home salary for the specific pay period.

The most common ways to pay employees include direct deposit, prepaid cards loaded with salaries, and paychecks to be distributed to each worker.

Make necessary connections and keep records

Be sure to keep records for salaries in different pay periods through copies of payslips and payroll records. Make any changes and corrections to employee salaries in case of discrepancies and inaccuracies in their pay.

Remit deductions

Lastly, companies should make sure to remit the deductions from each employee as a part of their compliance. It's best to consult an accountant for the appropriate tax deductions and always report new hires to the Internal Revenue Service.

What is an Operations Manager?

What is an operations manager?

An operations manager (OM) is responsible for the production floor of a company and oversee the production of goods and services. In the BPO industry, most operations manager would have started out as an agent and have worked their way up to being a team leader and then eventually becoming an operations manager.

As part of their oversight over operations, operations managers are expected to stay abreast on developments on local rules and regulations regarding safety, environmental compliance, and labor issues. More fundamentally, however, operations managers are expeted to have great people skills. Not only do they have to maintain awareness over the company's staffing needs, they may also be called to help out with human resources, from hiring, training, to performance appraisals.

Operations manager offshore

A typical operations manager in a BPO company handles team leaders (who in turn handles about 10-15 agents) and would earn around $1,200 per month.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with outsourcing.

What is Customer Service Representative?

What is a customer service representative?

A customer service representative (CSR) is an individual who interacts with customers on behalf of the company, usually to address their concerns.

Customer service reps are the front lines of service providers in customer support. They know first-hand how satisfied and dissatisfied customers are with the services they receive. Most importantly, CSRs prevent delivering poor customer service as much as possible.

A good customer service rep possesses a lot of skills they need to effectively deliver customer service. This includes good communication and problem-solving skills, quick wit, and interpersonal skills.

Customer service representatives are also called customer service associates and customer service advisors or consultants.

Duties of a customer service representative

Customer service representatives typically aim to maintain customer satisfaction and answer questions regarding a company or product. Their duties depend on what type of customer service they handle, whether inbound or outbound.

Inbound customer service representatives are the ones who handle incoming customer inquiries and concerns. More so, they are responsible for the following tasks.

Do basic troubleshooting Process orders Pull up customer accounts Handle and resolve customer complaints Help determine solutions for each problem

Outbound CSRs, meanwhile, are the ones who reach out to customers either through cold calling or emails. They deal mostly with the following aspects.

Lead generation Billing reminders Appointment confirmation Market surveys Key skills of customer service representatives

Most customer service representatives enter the industry with a high school diploma. However, a good customer service representative should have the following key skills and traits needed to be competitive at work.

Good communication. Customer service representatives must have good communication skills, especially since they will talk to customers all day. They have to listen carefully to their clients and be able to speak with them at the same time. Problem-solving. A good customer service representative should be able to analyze customer inquiries correctly and provide the best solutions for their concerns. Time management. Customer service representatives work in a fast-paced environment, handling volumes of calls and workload each day. This is why they need to manage their time properly so they can accommodate their target calls in a given period. Empathy. Most importantly, they must be able to handle their customers in a professional manner and with empathy. Customer service representatives should be able to place themselves in their client's shoes and understand their situations at hand. How to become a customer service representative

Anyone can ace a customer service representative job by doing the following steps.

Complete at least a secondary education. Many customer service representatives enter the industry with a high school diploma. This is since they have developed basic communication and interpersonal skills needed at work. Develop necessary skills. As much as possible, customer service reps should work on developing other necessary skills, including those mentioned above. Consider getting certifications. Lastly, a certification or license from institutions can be used as strong proof of their proficiency and skills. This is why getting certifications is most recommended, especially for CSRs looking to advance their employment. BPO customer service

BPO customer service means hiring a third-party service provider to handle inbound and outbound calls and other non-verbal communication with customers. In most cases, customer service outsourcing teams are part of a call center service.

For businesses, partnering with an outsourcing company is an ideal option to offer the best possible level of service to clients. After all, the more positive the experience is, the more it drives loyalty and brand recognition.

To find the best partner for your customer service tasks, you have to be open to assessing new and innovative service providers — either nearshore, onshore, or offshore

Be diligent in searching for the right fit for your company.

Remember that it is critical to choose a partner that understands the latest market demand to help you grow your business, maintain clients and gain new patrons.

 

Customer service representative in the Philippines

Outsource Accelerator provides you access to great customer service representatives that you can outsource from the Philippines starting from $6 per hour. By doing this, you can save up to 70% on staffing costs.

We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500 BPOs… all designed to make it easier for clients to learn about and engage with customer service outsourcing.

To get started with customer service outsourcing, take a look at our list of the Top 40 BPO Companies in the Philippines.

What is What is business process outsourcing?

What is Business Process Outsourcing BPO?

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following.

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

How does Business Process Outsourcing work?

Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.

It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.

Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing.

What are the benefits of business process outsourcing?

There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include:

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India.

Global market

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.

Focus

Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO include:

Big enterprise

Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber

Medium-size businesses

A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines.

What are the different types of BPO?

The type of business process outsourcing can be characterised by their specialisation, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.

Meanwhile, some specialise in certain verticals such as the following.

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives.

Location

Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.

Healthcare

Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.

Marketing

BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.

Administration

Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

Top BPO companies in the world’s top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.

Good thing advisory services such as Outsource Accelerator is there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.

Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.