Typhoons could slow PHL growth

The Philippine economy could face stronger inflationary pressures and slower growth as increasingly frequent and severe typhoons disrupt supply chains and farm production, the International Monetary Fund (IMF) said.

“The Philippines is highly exposed to natural hazards, particularly typhoons, which are the most frequent and costliest climate shocks in the country,” the IMF Regional Office for Asia and the Pacific said in a Facebook post. “These events represent supply shocks, creating inflationary pressure and reducing economic activity.”

The IMF estimated that a Category 5 storm could raise headline inflation by 0.4 percentage point (ppt) and food inflation by 0.7 ppt, based on regional data from its latest Article IV consultation with Manila.

Super Typhoon Ragasa, locally named Nando, was one such storm that battered the country late last month, causing floods and an initial P1.38 billion in agricultural damage.

Data from the Department of Agriculture showed that the southwest monsoon and typhoons Mirasol, Nando and Opong have caused P7.71 billion in combined losses. Farmers and fisherfolk lost 472,701 metric tons in production and 205,016 hectares of farmland.

The IMF said such weather shocks could drag agricultural labor productivity by as much as 2.5% and shave 0.4 ppt off economic growth, with estimated damage amounting to about 0.2% to 0.3% of gross domestic product (GDP).

Inflation accelerated to 1.7% in September from 1.5% in August, the fastest in six months, the Philippine Statistics Authority said. While slower than 1.9% a year earlier, the pickup reflected higher food prices after recent typhoons.

The agency said vegetable prices rose 19.4% in September, up from 10% in August — the steepest increase since January. Food inflation climbed to 0.8% from 0.6% in the previous month.

Average inflation this year stands at 1.7%, matching the Bangko Sentral ng Pilipinas’ (BSP) full-year target but slightly above the IMF’s 1.6% forecast.

The economy expanded by 5.4% in the first half, slower than last year’s 6.2% but in line with the IMF’s full-year outlook.

Economy Secretary Arsenio M. Balisacan said growth might soften further in the third quarter due to typhoon-related disruptions but could still meet the lower end of the government’s 5.5% to 6.5% goal. The third-quarter GDP data will be released on Nov. 7.

The IMF said monetary authorities should carefully balance inflation control with the need to support growth after natural disasters. “Post-disaster, monetary policy must carefully weigh trade-offs between anchoring inflation expectations and supporting economic recovery,” it said.

The BSP delivered its fourth straight 25-basis-point (bp) rate cut on Oct. 9, bringing its benchmark rate to a three-year low of 4.75%. It has reduced borrowing costs by 175 bps since August 2024.

“Fiscal policy is central to building climate resilience before disasters strike, to help mitigate the macro impacts of natural disasters,” the IMF added.

Source: Business World

Results-as-a-Service: The next evolution in business

We are entering an era where instant results are no longer a luxury but a necessity. Businesses and consumers alike demand speed, efficiency, and guaranteed outcomes, leading to a fundamental shift in how services are delivered. Where Software-as-a-service (SaaS) revolutionized software access and Infrastructure-as-a-service (IaaS) and Platform-as-a-service (PaaS) streamlined IT operations, the next evolution is here: Results-as-a-service (RaaS).

Unlike traditional service models that provide tools and infrastructure, RaaS is built entirely around delivering measurable and guaranteed outcomes. Instead of paying for subscriptions, software, or support with no guaranteed success, companies now pay only for results — whether that's qualified leads, cybersecurity protection, AI-driven insights or business growth. This shift is redefining industries, ensuring that businesses invest in performance-driven solutions rather than uncertain processes.

At its core, RaaS is outcome-based. Businesses no longer need to invest in tools, technology or expertise; instead, they partner with providers who guarantee specific results. This model creates an alignment of incentives, where service providers are as committed to success as their clients — an answer to one's skin in the game.

Imagine RaaS happening in key business areas, such as sales and marketing, cybersecurity, and AI-powered decision-making. For the first one, traditional agencies charge for campaigns regardless of performance. In contrast, RaaS marketing models focus on delivering actual sales or leads, ensuring companies only pay for tangible revenue growth.

For cybersecurity, instead of purchasing software and hiring IT teams, businesses can opt for RaaS-based cybersecurity, where they only pay if threats are prevented or resolved. Finally, companies can leverage AI-driven insights without buying expensive software. They simply pay for actionable recommendations and successful implementations. Companies are increasingly getting into this model.

Scorpion, a marketing and lead generation RaaS provider, offers digital marketing for businesses in law, health care and home services. Instead of paying for ad placements or marketing tools, businesses pay based on the actual leads and revenue generated.

DoNotPay offers AI-powered legal services that help users dispute parking tickets, cancel subscriptions and resolve small claims cases. Instead of charging for software access, users pay only when they successfully resolve a case, making it a prime example of legal RaaS. Mobavenue, an AdTech company focusing on acquiring relevant users through acquisition or retargeting, only charges per successful app download, for example.

The adoption of RaaS brings several significant benefits for businesses. One of the primary advantages is cost efficiency; by paying only for results rather than investing in tools or services upfront, organizations can allocate their resources more effectively.

This model allows companies to concentrate on their core competencies while outsourcing non-core functions to specialized providers, enhancing their overall focus. Additionally, RaaS facilitates scalability, enabling businesses to expand their operations without the burden of substantial upfront investments in technology or personnel.

Furthermore, RaaS improves decision-making by providing access to real-time data and analytics from partners, allowing organizations to make informed decisions quickly. This model also offers flexibility, as businesses can adapt their strategies based on performance metrics supplied by RaaS solutions.

However, while the benefits of RaaS are compelling, organizations must also navigate potential challenges. One concern is the dependency on external providers for critical functions, which can create vulnerabilities if those partnerships falter. Quality control is another important consideration; ensuring that service providers consistently meet agreed-upon outcomes necessitates robust oversight mechanisms. Additionally, sharing sensitive data with external partners raises significant concerns regarding privacy and security.

As industries continue to evolve toward RaaS models, both businesses and employees must embrace this transformation. The emphasis on measurable outcomes over traditional service models represents a substantial shift in how success is defined in the marketplace.

The rise of RaaS signifies a fundamental change in business operations — one that prioritizes results over processes. As organizations navigate this new landscape, they must remain agile and innovative while aligning their strategies with the principles of performance-driven success. Ultimately, the future belongs to those who can adapt to this new paradigm and leverage it for sustainable growth and competitive advantage.

As RaaS gains momentum, employees must adapt or risk obsolescence. This model shifts job roles from task execution to strategic thinking and results-driven contributions. Those who thrive in a RaaS-driven economy will adopt a performance mindset, develop versatile skill sets, and commit to lifelong learning, given the need to stay ahead of industry trends and emerging technologies.

The transition to RaaS marks a new era in business — one where success is measured not by tools or processes but by tangible, real-world impact. As industries shift toward this model, both businesses and employees must embrace the change, innovate and align themselves with the future of results-based success.

Source: Manila Times

Gen Z employees in the modern workplace

The emergence of Gen Z in the workforce is shaping the modern workplace in many ways, and it presents a unique challenge for managers who want to effectively lead and motivate this new generation of workers. Understanding the leadership and motivational preferences of Gen Z employees is crucial for improving job satisfaction, productivity and retention. In a recent study by the Ateneo Center for Organization Research & Development, researchers Arnold Policarpio and Mikee Talamayan shed light on the key leadership themes and motivational factors that are important to Gen Z employees in the Philippines. In this article, we will share the seven leadership themes that are most valued by Gen Z employees, explore their motivational factors, and provide practical strategies for attracting and retaining this cohort in your organization.

A new generation with unique values and preferences

Gen Z is the newest generation to enter the workforce, and they have a significant impact on the modern workplace. Unlike previous generations, Gen Z grew up with technology and is highly adaptable to its constant evolution. They are also more diverse, socially and politically engaged, and value-driven, with a desire for social justice and environmental sustainability. In the workplace, Gen Z employees prioritize purposeful work, work-life balance, and personal growth opportunities, and they place a high value on flexible work arrangements, such as remote work. Gen Z is also driving a shift toward a more inclusive and collaborative workplace culture, with a focus on transparency, open communication, and a sense of community. As more Gen Z employees join the workforce, companies will need to adapt their strategies to attract, retain and engage this new generation of workers.

The seven leadership themes valued by Gen Z employees

According to a study by Policarpio, Gen Z employees in the Philippines value approachability, respect, mentorship, competence, fair decision-making, autonomy and support for career and personal growth in their leaders. This perception of ideal leadership may have been influenced by the Filipino relational nature that values relationships over tasks. Leaders who embody these qualities can improve the job satisfaction, productivity and retention of Gen Z employees. Policarpio's study highlights the importance of cultivating positive relationships and offering mentorship to match Gen Z's desired leadership styles. Older generations have an opportunity to guide and share institutional knowledge to help shape Gen Z's chosen career paths.

Motivational factors driving Gen Z employees

According to Talamayan's study, personal achievement, passion, learning, growth and career development are essential factors that motivate Gen Z employees. However, what sets them apart from other generations is their emphasis on family, considering it a significant responsibility to support their loved ones. Unlike their millennial counterparts, Gen Z prioritizes financial security over an interesting work environment and sees their job as a means to save for the future. They also prioritize work-life balance and seek organizations that support this, with a desire for purposeful work and community involvement.

Practical strategies for attracting and retaining Gen Z employees

To attract and retain Gen Z employees, companies need to adapt their strategies to align with their unique values and preferences. For example, offering opportunities for learning and career development is essential to keep Gen Z employees engaged and motivated. Some firms have even implemented programs that allow their workers to learn new skills and attend conferences related to their interests. Additionally, companies need to be flexible and offer work arrangements that support work-life balance, such as remote work options and flexible hours. They can also implement wellness programs, offering gym memberships and mental health support to help employees maintain a healthy work-life balance. Gen Z's value for making a difference in the world is reflected in the rise of social enterprises and purpose-driven companies, where employees can contribute to causes that align with their values.

Source: Manila Times