While cost savings have been the primary driver for Australian small businesses to offshore administrative tasks, the cultural advantages of utilizing Filipino labor should not be overlooked. By examining the Hofstede cultural scorecard, we can gain valuable insights into the cultural compatibility between these countries, revealing the potential benefits of working with Filipino talent beyond cost savings.
Hofstede's Cultural Dimensions: A Brief Overview
Developed by Dutch social psychologist Geert Hofstede, the cultural dimensions theory provides a framework for comparing cultures based on six dimensions: power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, long-term orientation, and indulgence vs. restraint. The Hofstede cultural scorecard assigns scores to each dimension, offering a comprehensive comparison of the cultural values and preferences of different countries.
Cultural Advantages of Filipino Labor for Australian Small Businesses
- Low Power Distance: Filipino culture scores relatively low on the power distance dimension, indicating a preference for flatter organizational structures and equal distribution of power. This aligns well with the egalitarian values of Australian businesses, making it easier for employees to collaborate and communicate across different levels of hierarchy.
- Collectivism: The Philippines scores high on the collectivism dimension, with a strong emphasis on group loyalty and collaboration. This cultural trait can be highly advantageous for small businesses, as Filipino workers tend to work well in teams, fostering a sense of camaraderie and cooperation. This can lead to higher levels of productivity and increased job satisfaction.
- Flexibility and Adaptability: The Philippines has a lower score on uncertainty avoidance, which means that Filipino workers are generally more comfortable with ambiguity and change. This flexibility and adaptability make them well-suited to the dynamic environments of small businesses, where processes and priorities may shift frequently.
- Strong English Language Skills: As a result of historical ties with the United States and the widespread use of English in the Philippines, Filipinos possess strong English language skills. This proficiency in English makes communication with Australian businesses more seamless, reducing the likelihood of misunderstandings and facilitating collaboration.
- Service Orientation: Filipino culture emphasizes the importance of politeness, respect, and hospitality. These values translate into a strong service orientation, making Filipino workers well-suited to customer service and administrative roles. Their warm and friendly demeanor can contribute to a positive customer experience, enhancing the reputation of small businesses.
- High Value on Education and Professional Development: The Philippines places a high value on education and professional development, resulting in a highly skilled and motivated workforce. By tapping into this talent pool, Australian businesses can access a wide range of expertise and knowledge, driving innovation and improving the quality of work.
The Hofstede cultural scorecard provides valuable insights into the cultural compatibility between the Philippines and Australia, revealing the many advantages of working with Filipino labor beyond cost savings. By recognizing and embracing these cultural strengths, small businesses in Australia can optimize their offshoring strategy, enhance productivity, and foster positive working relationships with their Filipino counterparts. By focusing on these cultural synergies, businesses can unlock the full potential of offshoring, ultimately driving growth and long-term success.