Human performance in focus: What business leaders in the Philippines need to know

Business leaders in the Philippines are currently facing a critical gap. While most recognize the urgent need to adapt to the changing world of work, only a few believe that their organizations are responding effectively. The cost of inaction? A potential decline in productivity, trust, innovation and long-term resilience.

This insight comes from Deloitte’s 2025 Global Human Capital Trends study entitled “Unleashing Human Performance in a Boundaryless World,” which drew responses from over 13,000 voices across 93 countries, including 2,000 executives. Each year, the report offers a pulse check on how organizations are evolving and this year’s findings challenge leaders to rethink how they unlock human potential amid rising complexity. 

The modern workplace isn’t about choosing sides — it’s about balancing tensions: automation vs augmentation, agility vs stability and control vs empowerment. These aren’t problems to solve, but they’re dynamics to design around. True human performance doesn’t ask leaders to choose between business and people, it asks them to build systems that serve both.

Deloitte has identified three dimensions of human performance: work, workforce and organization and culture. These three elements present key areas where organizations must make strategic choices to unlock both human and business outcomes. 

The study presented the first dimension as rethinking work. Leaders around the world have overwhelmingly agreed that balancing stability and agility — or what Deloitte calls “stagility” — is essential in their operations. However, the challenges in achieving this are coming from the inside and not the outside. Internal blockers like outdated structures and varying leadership perspectives have hindered companies from focusing on what creates value rather than what just fills time. 

To move forward, businesses must shift from task-based roles to outcome-driven work, meaning their focus should be on empowering employees to redesign their workflows using AI and embracing flexible, skill-based models that adapt to change.

Simplification is another blind spot. Globally, 41 percent of work time is spent on low-value tasks, but the rise of new technologies poses opportunities to eliminate low-value tasks. Tech and data can be used to identify inefficiencies, and redesign processes with employee input. The “slack” or freed up time from the integration of tech to systems should be embraced as this is not a waste but a space for creativity, which could be a game-changer for the organization.

The second dimension is evolving the workforce, coming from findings that highlight the widening of the experience gap. Filipino companies struggle to find experienced hires while new workers struggle to gain experience — especially as AI takes over many entry-level tasks. This leads to a development vacuum or the growing difference between the skills and experience organizations need and what workers actually have.

The fix isn’t just more training, it’s rethinking how experiences should be built.

Apprenticeships, hands-on learning and AI-powered development tools can help bridge the gap. Work should be designed with career paths in mind, not just immediate outputs.

There’s also the digital employee value proposition (EVP) or the concept that tackles why and how people choose their employers in the AI era. As the technology transforms work, employees want more meaning, clarity, and support. Transparency about AI’s role and designing EVP strategies that help people thrive alongside machines — not compete with them — is essential.

Tech investment is another area where intent and impact don’t align. In the Philippines, only 4 percent of leaders believe their tech investments are delivering human value and it’s high time to redefine success metrics to include well-being, engagement and growth, not just efficiency.

Finally, the third identified dimension is rebuilding organizations for performance. Motivation is personal. Data can help decode what drives each employee — whether it’s recognition, autonomy, or purpose — and tailor experiences for them accordingly.

Performance management also needs a reset. Workers don’t trust traditional systems to measure their true value and there is a necessity to move from rigid reviews to daily coaching, meaningful feedback and enabling conditions for success.

The manager’s role is ripe for reinvention. With AI handling more admin and analysis, managers must focus on developing people, solving problems and guiding transformation. They need to be equipped not just to oversee tasks, but to coach, collaborate and catalyze agility. These are not just soft skills; these are hard currency in today’s world.

Considering these dimensions when forming a framework for one’s organization aids in managing the tensions between short-term results and long-term value. They drive leaders towards a reimagined workplace, one where performance management isn’t just traditional, but geared towards implementing efficiency-boosting practices directly into daily work life. 

The path forward lies in rebalancing work, workforce and workplace, not by solving tensions, but by embracing them. When we do, we don’t just optimize performance — we unleash human potential.

In a boundaryless world, that may be the most powerful advantage of all. 

Source: Manila Times

Food health, safety concerns starting to influence consumer purchasing behavior

Food health and safety are now major factors in Filipino consumers’ purchasing choices, signaling a new openness to healthier options in the market, PwC Philippines said, citing the results of a study.

The 2025 Voice of the Consumer Report indicated that about 60% of consumers now worry about the risks associated with ultra-processed foods and pesticides, outweighing concerns about cost.

Source: Pwc

“The survey results in terms of clamor for affordable food weren’t a surprise, but focus on health and food safety was something that was top of the list,” Mary Jade Roxas-Divinagracia, deals and corporate finance managing partner at PwC Philippines, told reporters at a briefing.

“I think Filipinos are sort of leveling up in terms of what they want and where they want to put their money in. It’s not just about volume or getting more food, but buying better-quality food.”

At least 60% of consumers said they are most concerned about pesticides in their food, while 57% think about the health risks of ultra processed foods and 56% consider food safety to be a major consideration.

However, PwC noted that increasing food prices and persistent cost-of-living challenges are making it more difficult for consumers to meet such goals.

In the Philippines, 45% of respondents said they opt for budget or value brands, while 56% purchase in bulk to maximize their funds.

The study also found that spending habits depend on whether consumers spend more time at home or outside.

“The more time they spend at home, the more they do what we call planned purchases, which means you go to a market, you know exactly what you want to buy, and you’re filling your pantry,” Rakesh Mani, Asia-Pacific consumer markets leader at PwC Southeast Asia said. “The more time spent outside the house, the more you see impulse purchases.”

PwC surveyed 21,075 consumers across 28 countries, including 501 from the Philippines.

Source: Business World

GDP growth may miss top-end goal

Philippine economic growth is unlikely to reach the upper end of the government’s 5.5-6.5% target this year amid higher US tariffs and slowing remittances, analysts said.

Foundation for Economic Freedom President Calixto V. Chikiamco said hitting the 6.5% mark is “possible, but improbable.”

“More so with [US President Donald J.] Trump tariffs on our key exports and a global economic slowdown,” Mr. Chikiamco said.

The economy grew by an annual 5.5% in the April-to-June period, supported by a rebound in agriculture production and faster household consumption.

For the first half, gross domestic product (GDP) growth averaged 5.4%, slower than the 6.2% a year ago.

Economic Secretary Arsenio M. Balisacan said the economy must grow by 5.6% in the second half to achieve the low end of the full-year target, and by 7.5% to hit the upper end of the goal.

“However, if the administration keeps its same steady as you go approach, the likelihood is that not only will the government fail to reach its minimum 6% growth target, but actually achieve less than 5.5% growth,” Mr. Chikiamco said.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the required 7.5% average growth in the July-to-December period is a “stretch goal but not impossible.”

“It will require strong export performance despite global headwinds, faster infrastructure rollout after the election spending ban, and sustained household and investment spending,” he said in a Viber message over the weekend.

Mr. Trump imposed a 19% export levy on goods from the Philippines, as well as Cambodia, Malaysia, Thailand, and Indonesia. This took effect on Aug. 7.

“With the tariff rate on the Philippines’ goods being in line with other ASEAN (Association of Southeast Asian Nations) emerging markets, the Philippines risks losing the opportunity of increasing its market share in the US,” HSBC economist for ASEAN Aris D. Dacanay said.

Mr. Dacanay said the strong growth in exports is unlikely to be sustained in the next semester.

“But unlike private consumption, we do not think this strong performance will be sustained. The robust performance was a result of frontloading of import demand across the globe in anticipation of higher US tariffs,” he said.

However, BMI said Philippines is well-insulated from the US tariffs “exports-wise,” but there is a possibility of Mr. Trump raising the tariffs if the Philippines fails to spend at least 5% of its GDP on military spending.

“If Trump threatens a higher tariff because of the nonfulfillment, we anticipate a further slowdown in export growth for the Philippines,” BMI said.

Mr. Rivera said he expects softer export growth, especially for sectors like electronics, garments, and agriculture.

“However, the full effect will likely be gradual, as existing orders and contracts still work through the pipeline,” he said.

“The extent of the slowdown will depend on how fast exporters can adjust either by negotiating better terms, shifting to other markets, or moving up the value chain.”

REMITTANCE SLOWDOWN

Analysts said slowing remittances from overseas Filipino workers (OFWs) may hurt consumer spending in the second half.

“A slowdown in remittances will weigh on private consumption while heightened global uncertainty will continue to chill,” Fitch Solutions’ unit BMI said.

Household final consumption, which accounts for over 70% of the economy, jumped by 5.5% in the second quarter. It was the fastest since the 8.1% growth in the first quarter of 2023.

BMI sees private consumption to grow by 5% in 2025.

“About 40% of remittances come from the US and President Donald Trump has clamped down on immigration and imposed a 1% tax on remittances. Remittances, therefore, are likely to continue dragging on consumption growth in the coming months, diminishing the positive effects of easier monetary policy,” BMI said.

The Bangko Sentral ng Pilipinas (BSP) expects cash remittances from OFWs to grow by 2.8% this year and by 3% in 2026.

The US will start imposing a 1% excise tax on cash-based remittances from the US to recipients abroad on Jan. 1, 2026.

BMI said it kept its GDP forecast at 5.4% for this year, but lowered its 2026 projection to 5.2% from 6.2% for 2026 due to slower remittances and tariff uncertainty.

“The upshot is that we maintain our relatively downbeat forecast for fixed investment to expand by 4.5% in 2025, well below the 12.4% over 2015-2019,” it said.

Nomura Global Markets Research said GDP growth will likely slow to 5.2% in the second half but kept its full-year forecast at 5.3%.

“We believe private investment spending will be more subdued, as businesses turn more cautious owing to surging global trade policy uncertainty and an increasingly challenging operating environment,” Nomura said.

“In the same vein, we expect goods export growth to slow due to the impact of US tariffs but acknowledge rising downside risks particularly from sectoral tariffs on semiconductors in the coming quarters.”

Last week, Mr. Trump announced plans to impose tariffs on semiconductors shipped to the US but offered to exempt companies manufacturing in the US or those that commit to do so, Reuters reported.

Meanwhile, Chinabank Research said it expects growth “to remain modest” as external prospects may remain subdued, given persisting uncertainties and rapidly changing global policies.

“Moving forward, downside risk to growth will be centered on external trade as elevated policy uncertainty and higher tariffs weigh on global economic activity,” it said in a policy note on Thursday.

On the demand side, Chinabank anticipates that government spending will likely continue to quicken for the rest of the year.

“We could see a rebound in the coming quarters as the government ramps up delayed projects and as the effects of interest rate cuts further materialize.”

Nomura said it expects the BSP to cut its policy rate by 25 bps at its Aug. 28 meeting and by another 25 bps in October.

“This would take the policy rate to 4.75% this year, which we think puts BSP’s monetary stance below its estimate of neutral, though we see some risk that BSP might deliver more in 2026 if inflation remains well within its 2-4% target,” Nomura said.

“We continue to believe BSP remains on a path of a steady shift to a more accommodative stance, given the benign inflation outlook.”

Meanwhile, Mr. Dacanay said with government infrastructure spending and services exports underperforming, further monetary easing could be needed to help sustain growth.

“Quickening and deepening the ongoing easing cycle will help support both sectors. Lower interest rates can help incentivize further investments, while it can also help improve or at least maintain the competitiveness of the services exports sector via the FX (foreign exchange) channel,” he said.

Source: Business World