They Tried To Discredit The BPO Industry

This is a response to a LinkedIn post that, although didn’t target Telework PH directly, attacked the BPO industry and indirectly even the Government of the Philippines.

Two weeks ago, the below was posted on LinkedIn. It’s a post that directly quotes John Jonas, the founder of Onlinejobs.PH.

And it’s a post that desperately tries to discredit the BPO industry of the Philippines through an attempt at emotional manipulation of the reader. Being a Westerner myself, I am aware of the “sweatshop” stories we always hear about in third-world countries. And here, John Jonas tries to play that up to his own financial benefit.

Posts like these further feed into the misconceptions about the practices of the BPO industry and the opportunities and benefits our agents receive. They also downplay the amount of legwork legit Filipino freelancers have to do in order to stay compliant and be successful.

It’s a shame that they feel the need to actually discredit the industry itself. An industry that employs well over 1.2 million people and offers them benefits and stability.

It would be just perfectly fine to say “Look, I have a different solution to Virtual Assistants. It may fit your model”

No one would have an issue with that. But when you take it so far as to use some low-blow tactics, then I have to question your ethics.

Have a look and see how it takes a good few jabs at what we do here in the Philippines and in the BPO industry. 

Posted by Dennis Yu

“I was paying the Filipino hiring agency $750 a month to employ Jake full-time. It was more affordable than local alternatives, and he earned every penny. But through a turn of events, I learned something that really ticked me off.

Come to find out, the agency was siphoning $500 of what I thought I was paying Jake every month. My VA was only getting $250 of my intended compensation! I flipped a brick. I had no idea that would be the arrangement when I hired Jake. Neither did he. 

When we realized what was happening, we were both upset. We both felt taken advantage of. (Later on, I learned that it’s pretty standard for an agency to take a huge cut of their workers’ pay. I understand that it’s just business. To me, it’s bad business and I will never do it again.)

The day after we recognized the discrepancy, I got an email from Jake. “Sir, I quit. I walked into the agency off, quit, and walked out.”

I didn’t know what to do except celebrate. I directly offered him a full-time job, increased his salary considerably (and he got to keep all of it), and we got back to work.”

[Dennis Yu’s commentary]

The entire quote above is from John Jonas, who is the creator of OnlineJobs.PH, a community of 2 million Filipino workers.

I’ve witnessed MANY agencies pocket 2/3rds of the money we pay– a travesty.

If you want to hire a VA, employ them directly.

Wow!

At first glance, the average reader may fall for these tactics. The attempt to stir an emotional response and view the BPO industry in the Philippines as “the bad guys”. Not only that, it alludes to the fact, coupled with the poster’s comments, that there is nothing that can be done. And the Philippines government just turned a blind eye

Let’s break down the above and examine it further so we have a clear picture of what John Jonas is actually saying here.

I was paying the Filipino hiring agency $750 a month to employ Jake full-time.

No, he was not. He was paying the agency for their services which included their sourcing, hiring, and employing Jake to help him with his tasks. HE did not employ Jake. Jake was employed by the agency. If he didn’t exist, Jake would still have a job. 

Also, what’s a “hiring agency”? Never heard of it. If he means recruitment or employment agencies then he should say that. If he means a BPO, like Telework PH, then he should say that. 

USD $750 per month is quite a bargain for an employment agency service. A quick search online of employment agencies and BPO and I couldn’t find anything comparable. These agencies also perform background checks and offer a guaranteed replacement should Jake have not worked out for him. But wait, there’s so much more.

It was more affordable than local alternatives, and he earned every penny.

Of course, Filipino talent is more affordable because the dollar has more buying power. Filipinos are just as qualified (even more in some cases) as local “alternatives.”

But through a turn of events, I learned something that really ticked me off.

The only “turn of events” that could have occurred is a conversation between him and “Jake”. 

Come to find out, the agency was siphoning $500 of what I thought I was paying Jake every month. My VA was only getting $250 of my intended compensation!

So he thought that he had stumbled upon a goldmine. He found an agency that has absolutely zero operating expenses and altruistically just takes his payment and hands it in full over to ol’ Jake. What then would there be the need for any further involvement of the agency? Why would they go to the expense of paying Jake when he could have just paid him directly?

Didn’t he even question that there MUST be some kind of fee?

When I buy a sandwich from a restaurant does the entire price go to the server who took my order? Or the cook who made it? Of course not. That’s a ridiculous thought.

I highly doubt that this story has any ring of truth, especially since USD $250.00 per month falls just below minimum wage (no VA would accept that offer nor would it be legal) and it is rather odd that an agency in the Philippines would consistently pay in round dollar amounts instead of the Peso. Not unheard of, but odd.

I had no idea that would be the arrangement when I hired Jake. Neither did he. 

If he sincerely believed this, then I for one question his understanding of how business works. Furthermore, wouldn’t he be concerned that Jake was receiving benefits and other perks? 

And again, he didn’t hire Jake. The agency hired Jake. He provided the tasks that Jake performed. Jake was an employee of the agency.

We see here the attempt to incite feelings of sympathy in the reader. “Poor me, I had no idea. I was simply taken advantage of! I’m an innocent bystander and a victim of the brutality of the agency!”

Also, I can’t believe “Jake” wasn’t aware of how these agencies operate. In the Philippines, all jobs require a contract. The contract lays out all the specifics, salary, benefits, length of employment etc. This is to abate these very situations Jake would have been well aware of many things.

(picture: Does this look like a sweatshop?)

When we realized what was happening, we were both upset. We both felt taken advantage of.

Why would he feel taken advantage of? Because he could have gotten away with paying Jake less? 

The one thing I do like about this line is it shows how easy it is to make a connection with a Filipino VA. The cultural and distance barriers fall away quickly.

Later on, I learned that it’s pretty standard for an agency to take a huge cut of their workers’ pay.

This is not a cut of the worker’s pay. The worker gets their full pay PLUS several other benefits explained below. What John Jonas is referring to is the agency fee of USD $750.00 per month. Which is actually quite low. There is no mention of the actual tasks he was performing. 

The “hiring agency” did the sourcing, the initial interview, the background checks and matched him with the right VA. Which, by his own admission, it seems to me they did a great job finding him the perfect fit.

He didn’t have to do any of the heavy lifting. The recruiting team prepared the profile for him. Payroll set up “Jake’s” credentials as well as monthly deductions for government taxes.

Then of course the agency pays “Jake’s” salary every two weeks — while he pays just once a month. Another benefit for the VA. Many times clients are late to pay. The agency isn’t.

The agency also most likely provides benefits (SSS, medical, government taxes), sick leave, vacation leave, and 13th-month pay. Also, there is IT support should something happen to their equipment. Furthermore there is a nighttime differential and monthly allowances for meals and travel. For work from home VA’s those allowances go toward internet and electricity.

So, payroll, recruitment, HR, management, IT, rent, electricity, internet, and all the other people and resources needed that make it possible for “Jake” to perform these tasks for him don’t deserve to be paid as well? Where would that money come from? Is this a magic agency?

(picture: Customer Service week! Fun, games, food, and prizes!)

This is a blatant attempt to discredit the BPO industry in the Philippines and insight anger in the reader. John Jonas is tugging at your heart strings for poor Jake (and himself!) in order to promote his website and services so he can earn money. A lot of money.

There is a commonality among people that companies who earn or have money are bad. People will completely destroy and bash the successful. Then turn right around and get on LinkedIn and talk about ways to..what? Turn a profit!

There is another common thought among Westerners that the Philippines exploits their own. That the BPO industry is a collection of “sweatshops” and there are no regulations.

Nothing could be further from the truth. In fact, the Philippine government is more employee-centered in business regulations than any western country that I am aware of. Almost to a fault. Workers here have more voice, more rights, and companies are regularly audited to make sure this type of exploitation does NOT occur.

So, John Jonas was upset that instead of just one Filipino putting food on the table, from his oh-so-generous USD $750 a month, SEVERAL other Filipinos would benefit. And he hates that.

I understand that it’s just business. 

Is he the Godfather? Honestly, as his post rambles on, I don’t think he understands anything. If he understood then the post would stop here, yes?

To me, it’s bad business and I will never do it again

Then why is he doing it? Is he not profiting off of Filipino freelancers? Or is it the western companies who pay those fees that he is exploiting? Why not let them engage with each other for free? Make the introduction then step back.

Taking a look at John Jonas’ website, Onlinejobs.PH, we see that companies are paying a monthly fee to connect with and interview Filipino talent. That’s great and I think it’s an outstanding way for Filipino freelancers to find projects. (But not all Filipinos in this industry want to be freelancers.)

So, does any of that monthly fee that a company or individual account holder pays go to the candidates they interview? Of course not! That fee helps maintain the platform. It covers operating expenses and the people’s salary that it takes to keep it running. Do we not see the logic in this?

(picture: Agents and management together enjoy an outing provided by TWPH)

The day after we recognized the discrepancy, I got an email from Jake. “Sir, I quit. I walked into the agency off, quit, and walked out.”

What has he done to poor Jake?! John Jonas got him so fired up that Jake marched down to the agency office and quit his job without any notice. And he did this before informing John Jonas, the client. Which could have left him in a predicament, yes?

There is so much wrong here.

Now Jake has a black mark on his employment record. It will be very difficult for him to find another job given that he has seemingly not followed the procedures of employment here in the Philippines. And John Jonas promoted this behavior by convincing Jake that he is a victim and to stick it to the man.

Shame on him.

I didn’t know what to do except celebrate.

He also didn’t know how to negotiate, investigate, or even open the discussion with the agency. 

If he wants to celebrate his lack of careful consideration, his impulsions, lack of knowledge of what it takes to employ someone correctly, lack of investigation into the employment practices and compliances of the Philippines, and the ability to influence poor Jake — well, that must have been one heck of a party.

I directly offered him a full-time job

No, he did not. He offered him full-time work. Not employment. Any entrepreneur or business leader would know the difference. One cannot “employ” or be an “employer” in the Philippines from abroad. 

What if Jake wanted to get a loan to buy a car, or a motorcycle? Or perhaps some home improvements. Who would vouch for his employment? Does he even have a pay stub to show?

Legit work from home freelancers invest a lot into their business; they are basically solopreneurs. One just doesn’t wake up one day and say — I think I’ll be a freelancer! There are so many processes and compliances that need to be followed just like with any other business. For instance, is Jake able to invoice and send a proper receipt so if he is audited he has all of his ducks in a row?

We at Telework PH are all for work-from-home freelancers. In fact, we promote it. We even help them when we can. We don’t feel at all threatened or scared by platforms like Onlinejobs.PH. There is plenty of work to go around for everyone. We have no need to bash or try to discredit these platforms in order to scare people into using our services.

Now most of our clients and agents are not of the same mindset as John Jonas and Jake here. They understand that the client pays us an hourly fee, we provide that service, and we set and pay the agent’s salary. We do NOT exploit our agents. Without the agents, we would not survive as a company.

Our salaries are competitive and relevant to the rate the client pays us. 

Posts like these do more damage than good. They do good for him, in order to drive people to his website, pay the fee and he makes the money. It’s sad that he feels he must try and discredit Philippines agencies in order to promote his services. The fact is, not all Filipinos want to be entrepreneurial freelancers. We have 1200 agents that enjoy the security, benefits, culture, and other perks they get from being a part of our organization.

And our clients benefit from our services in unimaginable ways.

Holiday Ham for all agents!

 …increased his salary considerably (and he got to keep all of it), and we got back to work.”

So apparently He was so busy patting himself on the back and crediting himself with having had Jake quit his job, he failed to mention HOW MUCH he increased Jake’s salary. Is he paying him the wage that he would pay someone local? He was so quick to suck the reader in with how much he was paying the agency and the breakdown from that, but he omitted how much he was actually paying. Does Jake get all of the revenue earned from the projects he is working on? That’s what John Jonas expected the agency to do, yes?

I find the phrase choice here interesting, “increased his salary considerably.” I wonder what he would consider a considerable amount for an increase? Most people would say I doubled or tripled his salary. Anything less than triple what he reported the agency was paying Jake is a cost savings to him. But I suppose what he decided to pay Jake is now confidential?

I suppose the fact that he is also covering Jake’s HMO for him and his family, paying every two weeks, giving an extra allowance for electricity and internet, covering his sick days and giving him 2 weeks paid vacation days per year, access to 24/7 free nursing, you will take care of his equipment when there is an issue (IT support), AND provide him with a 13th month pay is also all confidential right? Also, if His project ends or things get tight it must be confidential that he will find Jake a new client like the agency would.

No, he has screwed Jake. If Jake was not set up to be a freelancer with the proper TIN and other compliances and ready to take on those challenges, then he will have a very difficult time.

Also, I am assuming that he just unethically broke his contract with the agency? So, all of those other people that were counting on that revenue (those that helped lead Jake to him) to put food on the table you decided to screw over as well.

So, bravo, to Mr. Hero. He saved himself some cash, and in the meantime enticed Jake to tarnish his employment record, forced him to pay his own medical insurance (which is significantly higher when you self pay), left him without the security of vacation and sick leaves and took away his 13th-month pay. Furthermore, he no longer has that safety net should his laptop break down. 

And when his business goes belly up from unethical practices, like breaking contracts, poor Jake is out on his ear. Who is going to help Jake find work now?

Good show!

What sickens me most is people that think they are the hero for coming into developing countries and just throwing money at people like they’re throwing peanuts to a zoo animal thinking that it will solve all of their issues. Well, I’m here to tell you that those heroic efforts do more harm than good.

The Philippines may still be in developing nation status, but that does NOT mean it is a country of bamboo, coconuts, and uneducated people. The Philippines manages one of the busiest shipping lanes in Asia. It has thriving metropolises with everything you would find in the Western world. There are accredited Universities and yes, a government that has policies.

The entire quote above is from John Jonas, who is the creator of OnlineJobs.PH, a community of 2 million Filipino workers.

This information is appreciated. Now we have absolutely no question as to who we are dealing with. And who said these things.

I like how Dennis uses the term “workers” and not highly-skilled Virtual Assistants. Is that how he views the Filipinos?

I’ve witnessed MANY agencies pocket 2/3rds of the money we pay– a travesty.

First of all — who is “we”? Secondly, if he says he has witnessed it, why not call them out by name? If he is witnessing such unethical exploitation of workers, why not put a stop to it instead of just clicking his tongue and shaking his head? What is he afraid of? He has “witnessed” it, yet he just stood by and did nothing. Not even speak up. So, to me that says that his supposed concern for the well-being and plight of Filipino “workers” has its limits. Shame on him.

Again, this is another blatant attempt to stir emotion. This line attempts to discredit not just the BPO industry in the Philippines, but also it’s government. 

Using the phrase “the money we pay” will give the reader the impression they are being duped, taken advantage of, stolen from. In short — we are victims too!

Does your business have operating expenses? Salaries to pay? According to the rationale of John Jonas and Dennis, everyone working at Filipino agencies should be donating their time and efforts. Websites should be free, taxes should be waived, DOLE and other government agency compliances ignored.

The travesty here is how Dennis also uses these tactics, paints this picture of the Philippines (as if the poor Filipino is such a victim)  to get likes and views in order to further his own profits. He promotes the fact that he is a public speaker and influencer — yet does nothing.

 …pocket 2/3rds of the money…

Dennis uses the term “pocket”. The agency is “pocketing” the money. Yet, he says he is an entrepreneurial coach. I would hate to see how the businesses are run by the clients he is coaching if this is the mindset. 

I highly doubt any serious business owner or entrepreneur would fall for this, thank God.

So, in this case, the agency or BPO is bad for employing Jake and offering him benefits, but this guy is good for earning millions exploiting western companies who want to hire Filipino freelancers!

For your monthly fee what do they offer?

Do they:

• Source specifically to match the right VA for you?
• Do pre-vetting and background checks?
• Provide candidates with your requirements with no heavy lifting to you?
• Will they replace for free your VA if something should happen?
• Do they monitor attendance, performance and KPI’s?
• Are they insured to protect you?
• Do they offer cyber security?
• Disaster plans?
• Provide the VAs with more opportunities.

I could go on and on. The answer to all of these is — NO. But the BPO, like Telework PH does.

John Jonas recommends taking his special course to teach you HOW to hire a VA. Which is more out-of-pocket money and time. THE BPO DOES IT FOR FREE! And even after his course you STILL won’t get all of the benefits a BPO company like Telework PH will provide. And neither will your VA. 

If you want to hire a VA, employ them directly.

We have no problem with this. There’s plenty of work to go around. But you have to be prepared for the challenges. You’ll have to do the research into your candidates. Have them provide an NBI clearance. You’ll need to deal with developing nation issues (electric and internet interruptions) and tropical nation issues (typhoons, storms, etc.)…you’ll have to take John Jonas’ course.

…*sigh* and once again… one cannot employ a Filipino from abroad. They can only give them work and pay them.

In my opinion, John Jonas, Dennis Yu and Jake deserve each other. They are all very small-minded.

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