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FACILITATING EMPLOYMENT OPPORTUNITIES IN THE DIGITAL SPACE: A STUDY ON THE ACTIVITIES AND SERVICES OF DIGITAL LABOR MARKET INTERMEDIARIES IN THE PHILIPPINES

December 2023

Authors:

University of the Philippines System

Businesses that give employers and employees a place to meet are known as Labor Market Intermediaries (LMIs), and they play a critical role in facilitating transactions and creating networks. Digital LMIs (DLMIs) are LMIs that operate purely on a digital platform; this denotes that employer-employee matching in the labor market has transformed to meet the demands posed by 21st-century innovations and technologies (Autor 2001). In the Philippines, DLMIs have become a popular avenue for advertising employment opportunities and searching for job vacancies. Due to the presence of DLMIs in the Philippines and their profound impact on the labor market, the current policies on recruitment and placement fall short of covering DLMIs due to the ambiguity in applying Article 13, Section B of the Labor Code of the Philippines (LCP) to digital platforms. The findings of the studies are divided into four key areas, including (1) Existing policies and legal frameworks that have jurisdiction over the activities and services of DLMIs; (2) DLMI activities and services offered to job seekers and employers; (3) Effect of DLMIs on the pre-employment experiences of job seekers; and (4) Effect of DLMIs on the hiring and recruitment experiences of employers. This study recommends crafting a policy specific to the peculiarities of DLMIs, which will address the cross-cutting nature of cybersecurity and data privacy, along with the Department of Labor and Employment (DOLE) exercising its mandate to oversee employment facilitation activities and protect job seekers. The abundant and informative labor market information registered in DLMIs is also an avenue of cooperation between the government and the private sector. Keywords: Employment facilitation, Digital Labor Market Intermediaries, Digital Labor Platforms, Recruitment and Hiring

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Bridging Research, Policy and

Practice

https://ils.dole.gov.ph/

ILS WORKING PAPERS

2023

FACILITATING EMPLOYMENT

OPPORTUNITIES IN THE DIGITAL

SPACE: A STUDY ON THE

ACTIVITIES AND SERVICES OF

DIGITAL LABOR MARKET

INTERMEDIARIES IN THE

PHILIPPINES

Authors:

Chelsea Nicole P. Pineda

Loren Art S. Cayabyab

ISBN

EPUB: 978-971-566-019-8

MOBI/KINDLE: 978-971-566-020-4

PDF (read only): 978-971-566-021-1

PDF (downloadable): 978-971-566-022-8

Facilitating Employment Opportunities in the Digital Space: A Study on the

Activities and Services of Digital Labor Market Intermediaries in the

Philippines

Pineda, Chelsea Nicole P.

Cayabyab, Loren Art S.

December 2023

Published in 2023 by the

Institute for Labor Studies

Department of Labor and Employment

6F BF Condominium Building, A. Soriano Avenue

corner Solana Street Intramuros, Manila, Philippines

Tel. No.: +632 8527 3522

E-mail: oed@ils.dole.gov.ph / apd@ils.dole.gov.ph

Website: https://ils.dole.gov.ph

No copies can be made in part or in whole without prior written permission

from the authors and the publisher.

ABSTRACT

Businesses that give employers and employees a place to meet are known as

Labor Market Intermediaries (LMIs), and they play a critical role in facilitating transactions

and creating networks. Digital LMIs (DLMIs) are LMIs that operate purely on a digital

platform; this denotes that employer-employee matching in the labor market has

transformed to meet the demands posed by 21st-century innovations and technologies

(Autor 2001). In the Philippines, DLMIs have become a popular avenue for advertising

employment opportunities and searching for job vacancies. Due to the presence of DLMIs

in the Philippines and their profound impact on the labor market, the current policies on

recruitment and placement fall short of covering DLMIs due to the ambiguity in applying

Article 13, Section B of the Labor Code of the Philippines (LCP) to digital platforms.

The findings of the studies are divided into four key areas, including (1) Existing

policies and legal frameworks that have jurisdiction over the activities and services of

DLMIs; (2) DLMI activities and services offered to job seekers and employers; (3) Effect

of DLMIs on the pre-employment experiences of job seekers; and (4) Effect of DLMIs on

the hiring and recruitment experiences of employers. This study recommends crafting a

policy specific to the peculiarities of DLMIs, which will address the cross-cutting nature of

cybersecurity and data privacy, along with the Department of Labor and Employment

(DOLE) exercising its mandate to oversee employment facilitation activities and protect

job seekers. The abundant and informative labor market information registered in DLMIs

is also an avenue of cooperation between the government and the private sector.

Keywords: Employment facilitation, Digital Labor Market Intermediaries, Digital Labor

Platforms, Recruitment and Hiring

ii 
 
TABLE OF CONTENTS 
TABLE OF CONTENTS .................................................................................................. II 
LIST OF FIGURES ......................................................................................................... III 
LIST OF TABLES ........................................................................................................... IV 
INTRODUCTION ............................................................................................................. 1 
Digital transformation in Recruitment and Selection activities .............................. 1 
Overview of Employment Services in the Philippines ........................................... 2 
METHODOLOGY ............................................................................................................ 5 
Research Design .................................................................................................. 5 
Instrumentation ..................................................................................................... 5 
Data Collection ..................................................................................................... 6 
Quantitative Phase ............................................................................................. 10 
RESULTS AND DISCUSSION ...................................................................................... 16 
Existing policies and legal frameworks that have jurisdiction over the identified 
activities & services of DLMIs ............................................................................. 16 
Activities and services of DLMI offered to job seekers and employers ............... 20 
Effect of DLMIs on the pre-employment experiences of job seekers .................. 29 
Effect of DLMIs on the hiring and recruitment experiences of employers ........... 42 
CONCLUSION .............................................................................................................. 52 
RECOMMENDATIONS ................................................................................................. 54 
I. For the government ....................................................................................... , 54 
II. For DLMIs ....................................................................................................... 55 
REFERENCES .............................................................................................................. 57 
 
 
 
 
 
 
 
 
 
 
 
 

iii 
 
 
 
LIST OF FIGURES  
 
Figure 1. Count of KII respondents per sector and sex ................................................................................ 7 
Figure 3. Summary results of "Do you post your vacancies in DLMIs? ........................................................ 8 
Figure 2. Summary results of prescreening survey ...................................................................................... 8 
Figure 4. Regional distribution of target employer respondents for FGD ..................................................... 8 
Figure 5.Employer respondents per industry ................................................................................................ 9 
Figure 6. Distribution of prescreening survey respondents by willingness to participants and actual 
participants ........................................................................................................................................... 9 
Figure 7 Regional distribution of job seeker survey respondents ............................................................... 11 
Figure 8. Educational Attainment of job seeker survey respondents ......................................................... 12 
Figure 9. Educational attainment of job seeker survey respondents by sex .............................................. 13 
Figure 10. Employment status of job seeker survey respondents .............................................................. 13 
Figure 11. Employment status of survey respondents per sex ................................................................... 13 
Figure 12. Job seeker survey respondents by sector ................................................................................. 14 
Figure 13. Job seeker survey respondents in the government by nature of employment .......................... 14 
Figure 16. First time job seeker survey respondents by sex ...................................................................... 14 
Figure 15. First time job seeker survey respondents .................................................................................. 14 
Figure 14. Job seeker survey respondents in the private sector by nature of employment ....................... 14 
Figure 17. Policy and legal framework in the Philippines vis-a-vis DLMIs .................................................. 16 
Figure 18. Company type of DLMI participants........................................................................................... 20 
Figure 19. Corporation classification of DLMI participants ......................................................................... 20 
Figure 20. Registration type with DOLE of DLMI participants .................................................................... 20 
Figure 21. Employer walkthrough in DLMIs ................................................................................................ 26 
Figure 22. Job seeker walkthrough in DLMIs .............................................................................................. 26 
Figure 23. Registered employers, job seekers and job vacancies in four DLMIs from 2018 to July 2023 . 27 
Figure 24. Scope of PEA services and DLMI platform, software, and tools in the recruitment and selection 
landscape ........................................................................................................................................... 27 
Figure 25. Most commonly used DLMI of survey respondents ................................................................... 29 
Figure 26. Survey respondents' DLMI accounts ......................................................................................... 29 
Figure 27. Other DLMIs used by job seekers ............................................................................................. 30 
Figure 28. Other commonly used DLMI by job seeker by count ................................................................. 30 
Figure 29. Range of fees paid by job seekers ............................................................................................ 32 
Figure 30. Survey respondents payment of fees to use the basic features of DLMIs ................................ 32 
Figure 31. Job seeker response to fraudulent job postings encountered in DLMIs.................................... 33 
Figure 32. Job seeker response on what actions did they take upon ......................................................... 33 
Figure 33. Job seeker awareness of data retention policy ......................................................................... 34 
Figure 34. Job seeker respondents who encountered data privacy concerns ........................................... 35 
Figure 35. Survey response on "Did you encounter gender-based discrimination?" ................................. 36 
Figure 36. Job seeker response on trying traditional mode of seeking job opportunities ........................... 37 
Figure 37. Survey respondents on traditional modes of seeking job opportunities .................................... 37 
Figure 38. Job seeker response on the available features in DLMIs .......................................................... 38 
Figure 39. Average timeframe of job seekers before being hired ............................................................... 39 
Figure 40. Proposed regulatory framework for DLMIs. ............................................................................... 54 
 
 
  
 
 
 

iv 
 
LIST OF TABLES 
 
Table 1. Typologies of DLMIs ....................................................................................................................... 1 
Table 2. Target list of key informants. ........................................................................................................... 6 
Table 3. Summary results of Prescreening survey for employers .............................................................. 10 
Table 4. Number of FGD participants per date, region, and industry ......................................................... 10 
Table 5. Data cleaning process for job seeker survey. ............................................................................... 11 
Table 6. Fee and non-fee charging activities and services of DLMIs (in general) ...................................... 21 
Table 7. DLMIs identified by employers ...................................................................................................... 42 
Table 8. Top reasons for availing DLMIs .................................................................................................... 43 
Table 9. Requirements of participating employers for selecting DLMIs ..................................................... 44 
Table 10. Additional tests conducted outside of DLMIs by employers ....................................................... 44 
Table 11.Employer concerns about the use of DLMIs and SNS in recruitment ......................................... 45 
Table 12. Select responses from employers on questions about data privacy .......................................... 46 
Table 13. The traditional mode of recruitment ............................................................................................ 47 
Table 14. Select stakeholder sentiments on the advantages of conducting the recruitment process to non-
digital means ...................................................................................................................................... 47 
Table 15. Select responses from employers on the disadvantages of conducting the recruitment process 
through non-digital means .................................................................................................................. 49 
Table 16. Select employer sentiments on their opinion on the question “What do you think should be the 
roles and responsibilities of the government?” ................................................................................... 50

INTRODUCTION

Digital transformation in recruitment and selection activities

The impact of automation and information technology (IT) in the human resource

management (HRM) field over the years has revolutionized the way recruitment and

selection activities are conducted. However, digital transformation in this HR function took

time to come as compared to other critical HR tasks. The process of recruiting job seekers

is traditionally labor-intensive, from physically preparing the job vacancy, publishing the

announcement through different traditional channels, sorting, and screening physical

copies of job applications, and manually matching resumes (Lewaherilla and Huwae,

2023). Despite this, little attention was focused on improving this critical function in HR

Information Systems (HRIS) in the early 1980s, when technology was slowly changing

how employees conduct their work, as most business firms relied on the software for

automating compensation and benefits processing (De Sanctis, 1989). According to

Eshner et al. (2002), the shift to improving personnel selection activities came with the

transition when HR was slowly becoming a critical focal point of businesses to keep up

with globalization, demographic shifts, and technology – the key drivers of FiRe.

Online platforms or Digital Labor Market Intermediaries (DLMIs) have appeared to

facilitate employer-employee matching in the labor market, digitalizing the recruitment

and selection process to meet the demands posed by 21st-century innovations and

technologies (Autor 2001). In a more comprehensive definition, Autor (2007) and Bonet

& Capelli (2013) define LMIs as those that “pose themselves between workers and firms

to facilitate, inform, or regulate how workers are matched to firms, how work is

accomplished, and how conflicts are resolved.” DLMIs may be grouped into three types

by their functions and degree of intermediation: Connectors, Curators, and Comminglers

(See Table 1).

Table 1. Typologies of DLMIs

NAME

DEFINITION

EXAMPLES

Connectors

Digital technologies that connect workers and employers.

Includes websites where employers can post information

about job openings, aggregators that collect and redistribute

such postings, and platforms that facilitate labor contracting

for various tasks

Job posting websites:

Indeed, Monster, USAJobs

Aggregators:

Indeed, ZipRecruiter

Gig work/freelance websites:

UpWork, TaskRabbit,

Amazon Mechanical Turk

Curators

Websites and applications that allow companies to collect,

organize, and analyze information from job applicants and

other potential candidates. Includes automated hiring

platforms that collect job information, applicant tracking

systems that manage the hiring process, and web-based

search and screening tools used for vetting job candidates

Automated hiring platforms:

Workstream, vsource

Applicant tracking systems:

Taleo, Greenhouse, iCIMS

Web search tools: Google

Background check platforms:

HireRight, Experian, Edge

Employment Screening

Comminglers

Social media platforms that fulfill connecting and curating

functions simultaneously. They allow for the broad diffusion of

Social media:

LinkedIn, Facebook, Twitter,

information about job openings and candidates. They serve as

repositories of candidate and employer information that is

used in search and screening.

Instagram

Source: Directly quoted from Mcdonald et. Al (2022)

Software tools and built-in systems in digital platforms constructed by DLMIs aid HR

professionals in fulfilling their staffing needs while improving jobseeker job search

experience. Cloud-based solutions, where access to applications, software, storage, and

services are accessed via the Internet (Accenture, n.d) eliminating the need for physical

hardware, have become a popular service of DLMIs. In general, there are three types of

capabilities namely: (1) Software-as-a-Service (SaaS); (2) Infrastructure-as-a-Service

(IaaS); and (3) Performance-as-Service (PaaS) (Huth and Cebula, 2011). In a study

conducted by Al-Rwaidan et. al. (2022) among HR practitioners in the public sector of

Jordan, all cloud-based computing services generated a positive influence on HR

practices. More specifically, the authors cite Khan and Yasiri (2016), who claimed that

SaaS has provided businesses with data analytics that aided decision-making.

Sengupta et al. (2021) explored the use of digital tools in performing HR functions and

found social, mobile, analytics, and cloud (SMAC) technologies, SaaS, and artificial

intelligence as some of the widely used tools among HR professionals. Kulkarni and Che

(2019) discuss three main software tools for recruiting: (1) Job aggregators, (2) Candidate

Assessment Software, and (3) Applicant Tracking Software (ATS). The authors also

included a discussion on how Artificial intelligence (AI) has been applied in software tools

to further increase efficiency in recruitment and selection services. On the one hand,

digitization of recruitment and selection has positively affected the administrative work of

the HR department, cost efficiency of services, and accessibility of data among multiple

users (Sengupta et al.,2021). On the other hand, job seekers' experience in electronic

recruitment during their job search phase is positive (Baykal, 2020).

Overview of Employment Services in the Philippines

Figure 1. Regulatory landscape of employment services in the Philippines

Source: Authors’ illustration

Internet job search, through DLMIs, is a popular mode of seeking job opportunities in

the Philippines. Traditionally, however, private recruitment is regulated by the

government to afford the protection and promotion of the rights and welfare of the labor

force. It is in the national interest of the state to promote decent and full employment

among its constituents as part of the country’s national development objectives.

Operationalizing this entails strengthening the network of public employment service

offices under Local Government Units and rationalizing the participation of the private

sector in the recruitment and placement of workers for local and overseas employment,

as prescribed by Article 12 of the Labor Code of the Philippines (LCP), as amended,

which states that it is the policy of the state to strengthen the network of public

employment offices and rationalize the participation of the private sector in the

recruitment and placement of workers, locally and overseas, to serve national

development objectives.  

Employment facilitation by Private employment agencies (PEA) in the Philippines is

currently being regulated by LCP. PEAs are responsible for conducting private

recruitment as outlined in DOLE Department Order Nos. 216-20 and 217-20. The DOLE

regulates all PEAs to safeguard the rights of job searchers and avoid illegal hiring at

both the local and international levels, as required by LCP Article 25, which states that

the private employment sector shall participate in the recruitment and placement of

workers, locally and overseas, under such guidelines, rules, and regulations as may be

issued by the Secretary of Labor. To contextualize, Article 13, Section B of the Labor

Code refers to recruitment and placement as “ any act of canvassing, enlisting,

contracting, transporting, utilizing, hiring or procuring workers, and includes referrals,

contract services, promising or advertising for employment, locally or abroad, whether

for profit or not: Provided, That any person or entity which, in any manner, offers or

promises for a fee, employment to two or more persons shall be deemed engaged in

recruitment and placement.”  On the other hand, employment facilitation in the public

sector is carried out by the Public Employment Service Offices (PESOs) under the

Republic Act (R.A.) No. 8759 as amended by R.A. No. 10691, which core service is to

conduct free referral and placement to job seekers for local employment. It is maintained

and operated by Local Government Units (LGUs)and linked to DOLE for technical

supervision. However, no provisions in the LCP and DOs 216 and 217 cover the rules

and regulations about DLMIs.

In the digital space, the Bureau of Local Employment monitors and administers

Philjobnet, a government job portal that provides employment opportunities and posts

job vacancies for job seekers. On the private sector part, DLMIs are still unregulated.

Despite institutionalized frameworks, the policies fall short of covering DLMIs in their

regulatory space due to the ambiguity in applying Article 13, Section B of the LCP to

emerging digital platforms. This ambiguity has raised whether DLMIs should be inside

the regulatory landscape. In this context, this research seeks to explore the gap in

policy and determine whether the activities and services performed by DLMIs are

considered recruitment and placement following the existing policies and legal

frameworks of the Philippines.

Objectives of the Study

This paper aims to understand and characterize DLMIs in the Philippines concerning the

country’s existing policies and legal frameworks to aid policymaking. Specifically, this

paper aims to:

(1) Identify existing policies and legal frameworks that have jurisdiction over the identified

activities & services of DLMIs;

(2) Characterize DLMIs about the activities and services they offer to job seekers and

employers;

(3) Determine the effect of DLMIs on the pre-employment experiences of job seekers;

(4) Determine the effect of DLMIs on the hiring and recruitment experiences of employers

and

(5) Identify policy directions for protecting job seekers while supporting DLMIs in a

digitalized future of work.

METHODOLOGY

Research Design

This study adopted a mixed-method approach with a concurrent triangulation design.

Quantitative and qualitative data-gathering techniques were implemented simultaneously

to attain the paper's objectives, followed by data integration and analysis. The

recommendations largely drew from the analysis and data integration of the two phases.

Instrumentation

National Government Agencies (NGA). The instrument for NGAs is designed based on

the peculiarities of their mandate, policies, regulatory power, and functions of the activities

and services of DLMIs. The questionnaire also elicited the possible areas of collaboration

between NGAs and DOLE in enhancing the policies aimed at protecting the welfare of

job seekers.

DLMIs. The instrument design is based on the website content analysis made by the

proponents before the scheduling of interviews. It is divided into seven parts; the first part

is dedicated to the business profile of DLMIs based on their Securities and Exchange

(SEC) registration papers, followed by an overview of their activities and services. The

two succeeding sections are specifically designed for their services to employers and job

seekers. It was also indicated in the questionnaire if the interviewees would be amenable

to demonstrating the end-to-end process of employers and job seekers to understand

their respective platforms and features better. The remaining sections were dedicated to

their data privacy and cybersecurity compliance, internal policies to address job seeker

complaints, and concluding questions. Proponents also requested labor market

information from DLMIs on (1) total registered employers per industry, (2) total registered

job seekers and demographic profile, (3) total vacancies per employment type, and (4)

total vacancies per employment category.

Employers. The proponents devised two separate questionnaires for the prescreening

survey and for the FGD. The latter questionnaire is an expansion of the set of questions

in the prescreening survey to probe the experiences of employers in availing and using

the services of DLMIs. A prescreening survey for employers contained three parts: (1)

main qualifying question, (2) demographic profile, and (3) experience with DLMI

platforms. Meanwhile, the focus group discussion (FGD) questionnaire is divided into five

parts: (1) a comparison of non-digital and digital modes of recruitment, (2) availing the

services of DLMIs, (3) using the features of DLMIs, (4) issues, concerns, and complaints,

and (5) regulating DLMIs.

Job seekers. A survey tool for job seekers launched through SurveyCTO was made by

the proponents based on the existing mandate of the Department to protect job seekers.

Firstly, a socio-demographic profile was requested from job seekers, followed by the

qualifying question on their use of DLMIs in searching for employment opportunities. The

succeeding sections were dedicated to their experiences during their job search phase,

the effectiveness of using DLMIs in employment, complaints about fraudulent job postings

and data privacy concerns, and their overall user experience in using DLMIs during their

job search phase.

Data Collection

Qualitative Phase

Content Analysis. DLMIs are characterized through a content analysis of their websites

to examine the activities and services they offer for job seekers and employers.

Furthermore, administrative documents from the Department of Labor and Employment -

Bureau of Local Employment (DOLE-BLE), jurisprudence and legal frameworks on

regulating DLMIs, journal articles, publications from ILO and other reputable international

organizations were analyzed and used as reference material in writing this paper.

Key Informant Interviews (KII). Based on the consultation meetings with the Bureau of

Local Employment (BLE), four (4) NGAs and 12 DLMIs were identified as the target

respondents. Considering the small population of target respondents, all were given a

letter of request for an interview and an advance copy of the questions.

Table 2. Target list of key informants.

SECTOR

NAME

Government

Department of Justice

Department of Information, Communications and

Technology

National Privacy Commission

Securities and Exchange Commission

DLMI

BossJobs

Fastjobs

Findwork

Jobfinder

Jobs180

Jobstreet

Kalibrr

Monster Jobs

Mynimo

Recruitday

Servehappy

Xcruit (Formerly Workbank)

Figure 1. Count of KII respondents per sector and sex

Out of 16 target respondents, 11 interviewees participated in the interview. All target

NGAs participated in the study, while seven (7) DLMIs met the project team for an

interview. In terms of gender disaggregation, most key informants of the study are males.

On one hand, participants from the government sector are all males. On the other hand,

more women were visibly present in the DLMI sector where there were four (4) women

participants and three (3) male respondents (See Figure 3).

FGD. A prescreening survey was rolled out from 16 June to 07 July 2023 to determine

the participants from employers’ groups that availed the services and activities of DLMIs.

The Institute requested assistance from the Bureau of Labor Relations in disseminating

the prescreening survey to Industry Trade Councils across all regions. The research team

also requested the assistance of the Employers Confederation of the Philippines, the

Philippine Chamber of Commerce and Industry, the Peoples’ Management Association

of the Philippines, and PHILEXPORT for the dissemination of the prescreening survey

among their members.

NGA DLMI

Interviewee count per sex and classification

Female Male

Figure 4. Regional distribution of target employer respondents for FGD

The prescreening survey garnered a total of 106 survey respondents. All responses were

processed due to the close-ended survey questionnaire design. Fifty-three respondents

confirmed their company’s availment of DLMIs services in posting their job vacancies

while the other half responded negatively (See Figure 4). 34.9% of females and 15.1% of

males responded “YES” to the qualifying question (See Figure 5). Employers from nine

50%50%

"Do you post your vacancies in DLMIs?"

Yes No

Figure 2. Summary results of "Do you post your vacancies in DLMIs?

15.10%

34.90%

Sex

Male Female

Figure 3. Summary results of prescreening survey

Yes No

Distribution of prescreening survey respondents by willingness to

participants and actual participants

Willingness to particpate in FGD Actual participants

Figure 6. Distribution of prescreening survey respondents by willingness to participants

and actual participants

(9) regions participated in the survey (See Figure 7). Most employers in the prescreening

respondents are from the National Capital Region (NCR), followed by Region VII and

Region III. Employers from thirteen industries participated in the prescreening survey. 13

employers belonged to the Manufacturing industry, followed by eight (8) representatives

in the wholesale and retail trade; and repair of motor vehicles and motorcycles. Six (6)

employers are in the construction industry, and five (5) are from the human health and

social work activities industry (See Figure 8).

Figure 5.Employer respondents per industry

When asked about their willingness to participate in an FGD, 42 out of the 53 respondents

voted yes. The proponents were able to gather 17 employers from the prescreening

survey to the actual conduct of the FGD. Six (6) FGDs were held from 12 July to 08

August 2023 (Table 0). In total, 30 employers from 11 industries participated in the FGD

of the study. Most FGD participants hailed from Region VI belonging to the education

wholesale and retail trade and repair of motor vehicles and motorcycles industries. These

were also recommended by DOLE Regional Office VII.

Table 3. Summary results of Prescreening survey for employers

CRITERIA

TOTAL COUNT

Total Count of prescreening survey answers

106

Employers that use DLMIs in their hiring and

recruitment

Willingness to participate in FGD

ACTUAL PARTICIPANTS

Table 4. Number of FGD participants per date, region, and industry

DATE

REGION

EMPLOYER

COUNT

INDUSTRIES

12 July 2023

Region VI

1. Education

2. Wholesale and Retail

Trade; and repair of motor

vehicles and motorcycles

26 July 2023

Region IV-A

1. Human Health and Social

Work Activities

2. Manufacturing

27 July 2023

Region III

1. business Process

Outsourcing

2. Construction

02 August 2023

(Virtual FGD)

Mixed

1. construction

2. Mining and Quarrying

03 August 2023

(Virtual FGD)

Mixed

1. administrative and Support

Service Activities

2. Transportation and

Storage

3. Agriculture, Forestry and

Fishing

4. Wholesale and Retail

Trade; and repair of motor

vehicles and motorcycles

08 August 2023

(Virtual FGD)

Mixed

1. manufacturing

2. Human Health and Social

Work Activities

TOTAL

Quantitative Phase

The rollout of an online survey for job seekers. A snowball sampling method was

applied through the launch of a nationwide online survey, through SurveyCTO, from July

to 04 September 2023. The proponents requested assistance for dissemination to the (1)

National Youth Commission, (2) DOLE regional offices, (3) PESO Managers Association

of the Philippines, and (4) partner educational institutions of the Institute. The Institute's

social media page and various Facebook (FB) groups were used to roll out the self-

administered online survey. In distributing the online survey on each of their various social

media pages, the researcher cooperated with the DOLE regional offices and Bureaus.

Data cleaning process. The online survey for job seekers garnered a total of 333

respondents. The data cleaning process was conducted for one week after the survey

was closed on 04 September 2023. From July 6 to September 1, 2023, 333 individuals

responded to the survey, with 109 answered “No” to the use of DLMI, nine (9) had

inconsistent/ambiguous answers, and one (1) did not consent to participate. After data

cleaning, 214 survey participants were utilized as the final sample for the analysis in this

study (See Table 5).

Table 5. Data cleaning process for job seeker survey.

REASON FOR EXCLUSION

NUMBER OF

RESPONSES

EXCLUDED

REMARKS

Did not provide consent

Do not use DLMI in their job

109

Unclear answers

Found in multiple

numbers where their

inputs for “Others”

TOTAL

119

The final sample used = Total responses less excluded data (333 – 119 = 214)

Source: Authors’ summary

Figure 7 Regional distribution of job seeker survey respondents

Demographic profile of job seekers. The majority of the respondents were from the

National Capital Region (NCR) and Region III with 64.95% (139), while Region IV-A and

V gathered 23.36% (50), while other regions collected one (1) to four (4) responses. By

Gender, most of the respondents were female 68.22% while 24.77% were male and

7.01% preferred not to say.

Job seeker educational

attainment. In terms of

educational background,

most of the respondents

finished college (63%),

predominantly female with 93

responses, chunk of them

were college undergraduates

(23%), while others were high

school graduates (6%),

postgraduate (5%), and

vocational education

graduate (3%) (See Figure

10).

The job seeker survey gathered the most responses from females across all educational

attainments. Most female respondents are college graduates (93), followed by college

undergraduates (33) and High School graduates (11). A small number of female

respondents (4) are also graduates of vocational education while the remaining are post-

graduates (5).

Figure 8. Educational Attainment of job seeker survey respondents

6% 3%

23%

63%

Jobseeker Education Attainment

Highschool

Graduate

Vocational

Education

College

Undergraduate

College Graduate

Post Graduate

Figure 9. Educational attainment of job seeker survey respondents by sex

Highschool GraduateVocational EducationCollege

Undergraduate

College GraduatePost Graduate

Educational Attainment

Jobseeker Educational Attainment by Sex

Male Female LGBTIQA+ Prefer not to say

39.72%

60.28%

Employment Status

Employed Unemployed

Figure 10. Employment status of job seeker survey

respondents

95 9

EmployedUnemployed

Employment Status

Jobseeker Employment Status by Sex

Male Female LGBTIQA+ Prefer not to say

Figure 11. Employment status of survey respondents per sex

37.85%

62.15%

First time jobseekers

Yes No

Figure 15. First time job seeker survey respondents

Figure 13. Job seeker survey respondents in the government by nature of employment

Figure 12. Job seeker survey respondents by sector

29.91%

70.09%

Jobseeker Employment Sector

Government Private

Regular

Contractual

Freelance

Part-time

Self-employed

Seasonal

Project-based

Overseas Filipino Worker

Jobseekers in the private sector by nature of employment

Regular

Job Order

Contractual

Contract of Service

Co-terminus

Jobseekers in the government by nature of employment

Figure 14. First time job seeker survey respondents by sex

Yes

First time Jobseeker by Sex

Male Female LGBTIQA+ Prefer not to say

Figure 16. Job seeker survey respondents in the private sector by nature of employment

Job seeker employment status. By employment status, the majority of the respondents

were unemployed at the time of the survey 60.28%, and the remaining 39.72% were

employed. Figures 10 and 12 illustrate the educational attainment and employment status

of respondents disaggregated by gender.

Job seeker employment by sector. 70.09% of the survey respondents were employed

in the private sector, while the remaining 29.91% were working in the government sector.

This can be attributed to the majority of the job postings and opportunities on DLMIs being

from the private sector, while the government sector also uses DLMIs through online job

fairs. Further, the majority of the respondents in the private and government sectors were

already regulars, while almost half of them were contractual freelancers, part-timers,

and/or job orders.

First-time job seekers. Figure 17 shows that 37.85% of the respondents were first-time

job seekers, and the majority of them were female compared to male. 62.15% of the

respondents are currently employed and looking for other job opportunities through the

DLMIs.

Scope and limitations. This study is limited to (1) private-owned DLMIs in the

Philippines, (2) employers that post their job vacancies in any DLMIs, and (3) active and

inactive job seekers that have profiles in DLMIs. It should also be noted that the results

of the online survey for job seekers should not be generally applied to the labor force

since a snowballing sampling method was utilized.

Gender Relevance. The researchers aimed for an ideal 1:1 male-female ratio among the

interview participants. A gender lens will also be applied in analyzing the data collected

from the online surveys.  

Ethical considerations. The research proponents guarantee and uphold the

participants’ data privacy, confidentiality, and anonymity. Key informants and FGD

participants were briefed on the purpose of the study and their consent to participate and

be recorded was requested before the start of the interview.  The online survey for job

seekers also contained a portion on data privacy, confidentiality, and anonymity.

Research and Academic Integrity. The paper abides by the highest research standards,

intellectual honesty, and academic integrity, among others.  

RESULTS AND DISCUSSION

Existing policies and legal frameworks that have jurisdiction over the identified activities

& services of DLMIs

Figure 17. Policy and legal framework in the Philippines vis-a-vis DLMIs

Source: Author’s own illustration based on the findings

The right to employment is a basic right guaranteed to every Filipino by the Philippine

1987 Constitution. The State's objective is to ensure that every Filipino has access to

possibilities for work and to promote equal opportunity.

“The State shall afford full protection to labor, local and overseas,

organized and organized, and promote full employment and equality of

employment opportunities for all (Section 3, Art. XIII, 1987 Constitution).”

Acts enlisted in Section 13(b) of the LCP are also applicable in the digital space.

“Recruitment and Placement refers to any act of canvassing, enlisting,

contracting, transporting, utilizing, hiring or procuring workers, and

includes referrals, contract services, promising or advertising for

employment, locally or abroad, whether for profit or not: Provided, that any

person or entity which, in any manner, offers or promises for a fee,

employment to two or more persons shall be deemed engaged in

recruitment and placement. “

These acts are broad and do not limit recruitment and placement activity using traditional

methods and are also applicable in the digital space. However, there is a distinction

between how these acts are performed by traditional Private employment agencies and

DLMIs in the digital space. It was further clarified that the conduct of any act can be

considered and may be presumed as recruitment and placement activities. DOJ

believes that the description of conduct constituting recruitment and placement is

contained in the Implementing Rules and Regulations of the Labor Code of the

Philippines, as amended. Hence, the Department may exercise its regulatory powers over

entities engaged in recruitment and placement.

The acts committed must be about possible employment. It is made apparent by the

wording of Article 13(b) that employment may or may not be done for profit. It suffices for

an illegal recruitment conviction if the accused offers employment or makes promises in

exchange for payment (G.R. No. 169076, dated January 23, 2007). The Labor Code

defines "recruitment and placement" as "whether for profit or not," therefore even if it is

true that no money was sent, that would not matter in terms of a prosecution for unlawful

recruiting. As to the court's decision in People v. Jamilosa (G.R. No. 180926, December

10, 2008), it is "sufficient that the accused promises or offers a fee employment to warrant

conviction for illegal recruitment."

Due to the exclusive enumeration provided by the law, advertising for employment may

befall under recruitment and placement. Pending legislative action, there is a need to

provide less stringent regulations to these entities as it is within the mandate of this

Department to regulate pre-employment activities and entities engaged in activities that

involve advertisement of employment opportunities. DOLE may correlate with other

existing local legislation and jurisprudence on what proper rules and regulations should

be applied, as overregulation may affect the business model of the DLMIs.

Jurisprudence provides that the promise of employment is essential to classify

these entities as recruitment agencies. E-recruitment is considered a marketing

strategy undertaken by companies and employers to advertise job openings through

another medium, in this case, the Internet. To be engaged in recruitment and placement,

there must be a promise or an offer of employment from the person posing as a recruiter,

whether locally or abroad (People v. Gallardo, G.R. Nos. 140067-71, 29 August 2002).

In the People v Panis case, the number of people engaged isn't a crucial factor in

recruiting and placing workers. Any actions listed in Article 13 (b) would count as

recruitment and placement, even if it involves just one prospective worker. The exception

simply establishes a guideline: if a fee is collected for promising or offering employment

to two or more potential workers, the entity dealing with them will be assumed to be

involved in recruitment and placement based on evidence rules. Referral, a component

of the hiring process, refers to "forwarding an applicant for employment to an employer,

placement officer, or bureau after an initial interview" (Rodolfo v People, G.R. No. 146964,

2006). Unlawful recruitment and placement involve making promises of factory

employment and accepting money for paperwork processing without proper authorization

or a license. As per the ruling in People v Saulo (G.R. No. 125903, 2003), the absence of

the necessary license or authority renders all recruitment activities performed by the

accused-appellants illegal.

Scope and jurisdiction of DOLE’s regulatory powers on SEC-registered entities.

SEC monitors the strict implementation of enforcement of the Foreign Investment

Negative List (FINL), which limits foreign ownership participation in businesses engaged

in recruitment and placement up to 25% only. This also covers Resident Foreign

Corporations, Domestic Foreign Corporations, and foreign corporations. Exercising

DOLE’s regulatory powers over recruitment and placement activities, companies that fall

within the scope of FINL will not have their licenses immediately revoked. Entities will be

required to submit documentary requirements that declare their businesses conducting

recruitment and placement, revised articles of incorporation, and other relevant SEC

registration forms. On their end, they require applicants to submit Articles of

Incorporation, basic company details, and information such as industry classification

based on Philippine Standard Industrial Classification (PSIC), company name, address,

and incorporators, among others. Applicants submit information, and the SEC assesses

them; the SEC does not dictate to companies what to write and give on the information

needed from the companies. 

A key informant affirms that foreign equity ownership should be followed by Resident

Foreign Corporations, which is by the law. FINL limits the foreign equity ownership to 25%

in the case of recruitment and placement activity. If DOLE regulates and considers the

DLMIs conducting recruitment and placement activity, DLMIs might be violating the FINL

since most of them are 41% foreign-owned. DLMIs, regardless of whether RFC or

Domestic Corporations, are bound to follow the foreign ownership restrictions determined

in the FINL.

Concerns regarding data sharing agreements and data privacy. NPC recognizes the

benefits of DLMIs in creating spaces for employers and employees to connect outside of

traditional job search. The NPC is cognizant of the risks it presents - DLMIs store vast

amounts of personal data, which can be harmful to the data subjects in cases of data

breach. The NPC conducts multiple approaches vis-à-vis its regulatory functions, such as

monitoring compliance, capacity-building, data protection standards, investigation and

adjudication, and enforcement. Moreover, DLMIs are expected to uphold the data subject

rights under Section 16 of the Data Privacy Act (DPA), as further explained in Rule VIII of

the DPA’s Implementing Rules and Regulations. Under prevailing NPC issuances, review

of data-sharing agreements is not mandatory, and each party is responsible for complying

with the requirements of the DPA. NPC has not received any data breach notifications

involving DLMIs from 2019-2022. Entities under one sector may opt to form a data privacy

council where members can define and enumerate the treatment, utilization, and storage

of the job seekers’ data.

Private companies or job sites are also required to submit a list of their data privacy

officers. There are five Personal Information Controllers or Personal Information

Processors (PICs/PIPs) registered in the NPC Registration System, but since 2020, nine

entities have registered with the NPC. The NPC also conducts on-site visit compliance

checks where the Compliance and Monitoring Division evaluates, assesses, and guides

stakeholders toward their compliance journey. NPC provides assistance or guidance to

sectoral organizations or entities to organize and conduct privacy issuances,

requirements, or needs.

The DICT in the Philippines plays a crucial role in monitoring and addressing

emerging cybersecurity threats and vulnerabilities, including those related to

DLMIs. DICT’s overseeing functions are insofar as with the enforcement or

implementation of all cybersecurity laws. Enforcement of data privacy law is co-shared

with NPC. However, regulation of DLMIs insofar as they perform their labor market

intermediation functions under the Labor Code is covered by DOLE.

Activities and services of DLMI offered to job seekers and employers

Business profile of DLMIs

Most DLMIs are domestic and non-stock corporations. Participating DLMIs are duly

registered with the SEC, signaling compliance with national laws. Most respondents are

Filipino-owned and domestic corporations. A small number of DLMIs are non-stock

corporations while, in terms of company classification, there is only one foreign-owned

corporation. Based on their SEC registrations, most DLMIs are categorized into software

development; operating, developing, managing, and providing software solutions;

operating an online search portal; information technology; and web/mobile applications,

among others.

Two companies are licensed PEAs and

have digital platforms. Participating DLMIs

disclosed that they had acquired a PEA

license before the start of the pandemic. They

were categorized as DLMIs because they

made use of online websites and social

networking sites (SNS) to disseminate job

vacancy postings. A participant discussed

their marketing strategy for attracting job

seekers and employers, vouching for the use

of SNS in sourcing and pooling job candidates

due to the volume of inquiries and applications

received. Job interviews were still conducted

in their physical office as compared to the

other participants who said their company

opted to conduct interviews with job candidates online. Essentially, PEAs oversee the

preparation, sourcing, screening, and selecting phases on behalf of the employer. A PEA

license is a conduit for the company to conduct screening and initial interviews on the

Figure 19. Corporation classification of DLMI participants

Corporation classification

Domestic Foreign

Company type

Stock Non-stock

Figure 20. Registration type with DOLE of DLMI

participants

Registration type with DOLE

Private Employment Agency

Not registered with DOLE

Figure 18. Company type of DLMI participants

potential candidates for job vacancies. After these, the PEAs place the assessed job

seekers to employers for hiring.

Activities and Services of DLMIs

EMPLOYERS

JOB SEEKERS

FEE-

CHARGING

1. Job posting/advertisement

1. Referral

2. Employer Branding (Marketing)

3. Virtual jobs fair*

4. Resume search

NON-FEE

CHARGING

1. ATS

1. Job search

2. Company profile search

3. Skills assessment test

4. Alerts on job preferences

2. Skills test

5. Resume Builder

6. Networking with industry

experts and professionals

7. Video resume

3. Labor Market Information (LMI)

report

8. Career coaching and

guidance seminars and

articles

9. Advertisement of skilling

opportunities

Source: Authors’ compilation

Table 6. Fee and non-fee charging activities and services of DLMIs (in general)

In general, Table 7 depicts the overall services and activities of DLMIs for employers and

job seekers. The table is categorized into services and activities where DLMIs gain profit

or not and their advocacy activities that are free of charge.

Services for Employers

Fee Charging

1. A job posting/advertisement is a notice published online by a company or

employer to inform job seekers about available positions. These advertisements seek to

inform prospective applicants of the essential duties and qualifications of the position.

2. Employer branding is a marketing service offered to companies and

organizations to raise the visibility of their job postings for the active administration of the

employer brand to promote the company to job seekers.

3. Virtual jobs fair is an approach to employment services that makes it easier for

employers and job seekers to meet and be engaged in hiring and activities including

registration, interviews, and placements made possible via DLMIs.

4. Resume search service pertains to whereby companies can post positions and

go through resumes of prospective employees. Employers can also search for resumes

by region, industry, qualifications, and experiences using a resume database.

Non-fee charging

1. Applicant Tracking Software manages job listings and applications on a single

DLMI, enabling employers to automate the recruitment process. This system

prioritizes resumes according to how closely they match the job description. This

allows hiring managers to find the best candidates fast and advance them through

the hiring process.

2. Skills tests are done by employers to determine the minimal level of practical

knowledge, skills, and abilities that a job seeker possesses to carry out the duties

listed in the job opportunity's job description.

3. The LMI report provides job seekers with up-to-date information on the overall

number of open positions, their occupations, and the jobs that employers, job

seekers, and industry are most interested in. Employers and job seekers can

obtain information from it about labor market developments.

Services for Job seekers

Fee Charging

1. Referral is a method of connecting pre-screened job applicants with companies

that have openings that meet their standards.

Non-fee charging

1. Job search refers to a service offered to job seekers to look for their desired

employment and occupation based on their qualifications. It is often done by

looking for and browsing available jobs based on the keywords provided.

2. Company profile search is a job seeker's tool for finding out information about a

certain company is a company profile search. Based on the data provided by the

company, it can offer both broad and detailed information about the organization.

Candidates now have the option to review the information of the company they

want to work for that has DLMI registered.

3. The skills assessment test is a voluntary test to determine the minimal level of

practical knowledge, skills, and abilities that a job seeker possesses to carry out

the duties listed in the job opportunity's job description.

4. Alerts on job preferences allow for an automatic notification through email or

direct message to job seekers on their preferred job opportunities posted in the

DLMI.

5. Resume builder is a technological tool used by job seekers in the DLMI to

automatically generate a resume template based on the given data and information

of job seekers based on the preferences of employers. It helps job seekers to

instantly create a resume.

6. Networking with industry experts and professionals. One of DLMI's services

is networking with professionals and industry experts by fostering good ties

between job seekers and industry experts. Keeping a list might help you get the

job you want, keep informed about advances in the field, and share insightful

information.

7. Video resume allows an applicant to film a brief video introduction which will be

sent to an employer. Candidates can utilize their video CV to promote their

qualifications and demonstrate why they are the ideal candidate for the job.

8. Career coaching and guidance seminars are advocacy activities of DLMIs to

guarantee that job seekers receive timely and pertinent information about the

reality and current developments in the labor market that influence their choice of

career.

9. Advertisements of skilling opportunities are published by DLMIs that contain

available opportunities for job seekers to obtain certain types of skills that may be

beneficial on their application to different job postings.

The primary service of most DLMIs is job advertisements, while some integrate

employer branding into their packages. The online websites owned by DLMIs have

replaced the old-fashioned method of recruitment and job matching, eliminating the need

for physical spaces for job seekers and employers to connect. Employers can post two or

more job vacancies, depending on the staffing needs, and may have the option to

advertise their brand on the landing page. For instance, some DLMIs charge employers

per job posting only while others offer a company banner in the DLMI landing page along

with the job advertisement. DLMIs utilize their website algorithms and spaces to advertise

employer banners on their platforms. In the study conducted by Spitzer et al. (2013),

employer branding in digital platforms has become a strategy to attract high-quality job

candidates. Fees charged to employers are determined by the number of job postings,

duration of the job posting, employer branding ad placement on the website, and other

customizations the DLMI may offer.

DLMI services are equipped with tools and features to downsize the administrative

burden of recruiting job seekers and applying for jobs. ATS and advanced filtering

systems categories are built into the systems of digital platforms at the convenience of

employers and job seekers alike. In the case of employers, this feature has become a

crucial element in the preparation, screening, and selecting phases of the recruitment and

hiring cycle in the digital platform. Under the preparation phase, account handlers may

indicate the skills, competencies, required work experience, licenses, and certifications

as deemed integral to the performance of the position. Employers may also require

additional questions related to the job vacancy (i.e., Do you have this number of work

experience working in a specific industry?). ATS automates the screening phase of the

recruitment and hiring cycle, maximizing technological efficiency to its utmost potential.

The filters applied during the preparation stage are used as inputs to facilitate the

automated job-matching process of qualified applicants with the job vacancy. The account

managers conduct another layer of human checking on the applications to ensure that

qualified and unqualified candidates are correctly filtered and sorted. Applicants are then

tagged based on the results of the initial screening assessment. Employers then contact

qualified candidates outside the platform for additional interviews and assessments. It is

worth noting that DLMIs do not provide services or systems that oversee the overall

recruitment and hiring cycle but, offer tools to improve organizational efficiency in

recruiting job seekers. Despite the features offered by DLMIs, employers still opt to use

their own HRIS in hiring and onboarding candidates since their system contains all

modules needed to train and inform the new hire. Thus, employers highly rely on DLMIs

for sourcing and pooling applicants.

DLMIs also integrated a single-sign-on (SSO) authentication scheme during the

registration process for job seekers, where they may connect their personal emails or

social media accounts during this process. On the side of job seekers, job hunting is made

easier by searching for specific keywords on occupations, employment type, location, and

expected salary, among others. Job seekers can track the status of their applications via

their accounts through this feature. (See Figure 25. Job seeker walkthrough).

Paid but limited access to job seeker profile DLMI database offered only to

employers. The number of profiles that an employer can access is determined by DLMIs.

According to a respondent, the number of job seeker profiles that can be accessed

through this feature is still limited and usually availed by companies scouting for passive

candidates in hard-to-fill occupations and managerial or executive positions. Hereinafter,

employers can send an invitation to apply for a job vacancy within the platform, or

communications can be done outside of the platform. It is worth noting that registered job

seekers must provide their consent to have their data accessed by employers despite

having no prior job applications to the latter for the former to gain access to their job

seeker profile.

Skills test for preliminary assessment of competencies to filter applicants. Another

significant service of certain DLMIs is the provision of skills assessment tests that can be

conducted online. Employers may provide their required metrics in the system and set

this as a filter for interested job applicants.

Use of AI to improve customer and user experience in DLMI platforms. Most DLMIs

that participated floated how the use of AI has generated insightful reports on analyzing

user behavior on their platform. These reports, as well as back-end reports, are used to

improve customer experience, job suggestions to job seekers, and user interface. This

is consistent with the findings of Al-Rwaidan et al. (2022) on the improved efficiency of

HR tasks due to IT and automation. Kulkarni and Che (2019) support the use of AI in

recruitment activities to allow HR professionals to devote more focus on functions

requiring physical interactions and increase employee engagement. They further

recommend using AI tools to generate comprehensive criteria for matching candidates

with the skills and competencies required by the vacancy, a reference file for an ideal

candidate with soft skills, and a list of recommended candidates that match the vacancy

and organizational needs.

Stringent requirements of DLMIs for employers act as a safety net for job seekers

from applying to non-existent companies. All DLMIs require employers to submit legal

documents for verification of legitimacy such as business permits, Bureau of Internal

Revenue (BIR), and SEC registration, among others. Some DLMIs have a dedicated team

to investigate the legitimacy of these businesses which may take a lead time of two to five

days before the approval of employer profile in DLMI platforms. Furthermore, DLMIs

strictly accommodate job postings for local employment only. (See Figure 25. Employer

walkthrough)

Minimal job postings for freelancers. Based on the data provided by DLMIs, most of

the participants provided minimal to no data on freelance opportunities. A respondent

discussed that their company only caters to business entities registered with BIR, SEC,

and or DTI. This is to ensure the existence of the company under national laws and

companies that establish employee-employer relationships. Some DLMIs have

accommodated freelancing opportunities that are handled by a registered entity.

Government partnership for virtual jobs fair. Respondents mentioned that they were

tapped by government entities to partner for the conduct of a virtual jobs fair. Noting that

these virtual job fairs are approved by DOLE, the conduct of job fairs in the virtual setting

at the height of the pandemic yielded favorable results from job seekers and employers'

side. DLMIs provide video conferencing capability as well as virtual booths where

employers and employees can interact in real-time. Furthermore, some virtual job fairs

also include one-stop-shop online services for tech-savvy job seekers.

Advocacy activities are geared towards increasing the employability of job

seekers. DLMIs conduct seminars on career guidance and career tips for job seekers.

Set against this, first-time job seekers are one of the primary target markets of career

guidance seminars to prepare them for the world of work. These talks usually revolve

around preparing for job interviews, resume building, and the soft skills that employers

look for in job seekers. Participating in campus tours and career guidance seminars also

serves as a marketing strategy for DLMIs to attract job seekers to register on their

platforms. For junior-level professionals and above, job seekers may access feature

articles found on digital platforms. As compared to seminars conducted in universities,

these online articles cover an array of topics such as tips for negotiating salaries, work-

life balance, office productivity, etc.

Figure 21. Employer walkthrough in DLMIs

Figure 22. Job seeker walkthrough in DLMIs

DLMIs contain crucial LMI integral to evidence-based policymaking. Based on the

data provided by participating DLMIs, the total number of job seekers registered across

all platforms is estimated at 14.5 million while employers reached an estimate of 53,800.

Meanwhile, job vacancies totaled 38.2 million across all platforms and different sectors.

It is important to note, however, that the estimated numbers above are not final. Job

seekers and employers may have registered accounts across all participating DLMIs, as

well as the job vacancies posted.

Scope of PEA services vs. DLMI platform, tools, and services in the Recruitment and

selection process

Source: Authors’ illustration based on the Full Recruitment Cycle process of Verlinden, (n.d.); Rawat (2019),

and Jain (2023).

Figure 24. Scope of PEA services and DLMI platform, software, and tools in the recruitment and selection landscape

Verlinden (n.d), Rawat (2019), and Jain (2023) define full-cycle recruitment as a holistic

recruitment process wherein the recruiter is involved in the end-to-end process of hiring

the candidate until their employment in the company. Full-cycle recruitment consists of

Figure 23. Registered employers, job seekers and job vacancies in four DLMIs from 2018 to July 2023

six phases namely Preparing, Sourcing, Screening, Selecting, Hiring, and Onboarding. In

the preparation phase, HR managers prepare the job description and job vacancy

announcement for dissemination. This is followed by the sourcing phase where the job

vacancy is posted on different channels to attract job seekers and increase the pool of

qualified candidates. During the screening phase, job applications are processed by

screening the resumes and matching the qualifications of the vacancies with submissions

from job seekers. As for the selecting phase, HR managers schedule an interview with

the job candidates and are later interviewed regarding their professional experience, and

motivations to work for the organization. HR managers then perform the additional steps

of background checking and deliberation. This is where usually the job offer happens. In

the onboarding phase, HR managers would conduct the orientation and perform regular

check-ups with the newly hired.

The platform, software, and tools offered by DLMIs in the Philippines do not cover

the end-to-end process of recruitment and selection, as compared to PEAs, as

illustrated in Figure 20. DLMIs’ platform, software, and tools are specifically designed to

provide productivity solutions to businesses for their hiring needs. These services are

intended to cover the four phases of the full recruitment cycle, from the preparation phase

until the selecting phase, where HR managers may utilize these to accomplish their tasks

to attract job seekers and eventually fill in the job vacancy. Fulfilling these tasks would

initiate the process of electronic recruitment (E-Recruitment) between candidates and

hiring managers through or outside the digital platform, depending on the mode of

communication preferred by either one. In this way, job seekers are also enticed to create

their job seeker profiles on DLMI websites to scan for job vacancies prepared by HR

managers. PEAs, on the contrary, cover the end-to-end phases of the recruitment and

selection landscape on behalf of the employer. In the Philippines, these agencies

facilitated the matching of job seekers and employers in the labor market, providing

employment opportunities to Kasambahays and industry workers. Additionally, PEA

onboarding is where job seekers are deployed after the selection of employers. Unlike

DLMIs, PEAs assume joint and solidary liability with the employer for payment of wages,

wage-related and other benefits. Including monthly contributions for social benefits, under

Department Order 217, s. of 2022.

Effect of DLMIs on the pre-employment experiences of job seekers

Job seekers have multiple DLMI accounts. After the survey, the majority of the

respondents have multiple accounts on the various DLMIs such as Jobstreet with 181

answers from the respondents; followed by Others with 80 responses which include social

media pages like Facebook, LinkedIn, and Indeed; Kalibrr (45); Jobfinder.ph (21); Foundit

(21); Jobs180 (18); Findwork (14); Fastjobs (11); Bossjobs (8); Mynimo (6); Xcruit and

Recruitday (5); and ServeHappy (3). Thus, Jobstreet by Seek was founded in Malaysia

in 1997, and in 1999 it was registered and started to operate in Singapore and the

Philippines. Moreover, Jobstreet received funding from Seek, an Australian business that

leads the online job market, in 2008. Jobstreet and JobsDB were merged by Seek in 2014

to become Seek Asia. Even though they launched independently, SEEK, JobStreet, and

JobsDB had a similar goal. When combined, SEEK is the biggest job marketplace in the

world today, consistently fulfilling our mission. Each of them makes use of distinct data

and technology to produce creative answers and visions for the future of work.

Among the identified DLMIs, Jobstreet is the most popular platform used by the

respondents. In terms of the usage of DLMIs, widely used is Jobstreet (131) by job

seekers and respondents; followed by Others (49) such as Indeed, and Linkedin, among

others; Kalibrr and Findwork tied up with eight (8) responses; Jobfinder (7); Jobs180 (6),

Fastjobs (2); while Bossjobs, Mynimo, and Servehappy with one (1) response.

181

Jobstreet

Kalibrr

Jobfinder.ph

Foundit

Jobs180.com

Findwork

Fastjobs.ph

BossJobs.ph

Mynimo

Xcruit

Recruitday

ServeHappy

Others

Jobseeker accounts in DLMIs

Figure 26. Survey respondents' DLMI accounts

131

Jobstreet

Kalibrr

Findwork

JobFinder

Jobs180

FastJobs

BossJobs

Mynimo

ServeHappy

Others

Commonly used DLMI by jobseekers

Figure 25. Most commonly used DLMI of survey respondents

Apart from the identified DLMIs by

DOLE, job seeker respondents

also use other DLMIs, SNS,

freelance websites, and digital

domains of PESOs. Since almost

half of the respondents with multiple

accounts answered Others, the

majority of other DLMIs include

Indeed (22) and LinkedIn (21), while

others answered Facebook (7);

Onlinejobs.ph (6); Upwork (5); Jora

(2); Philippine Go, Glassjobs, PESO,

Workabroad, and Philjobnet with one

(1) response. Figure 00 shows the

other DLMIs gathered from the

respondents. To note, LinkedIn and

Facebook are both social media

networks that have different features on job posting compared to legitimate DLMIs.

SNS is among the popular

commonly used platforms to

search for job vacancies. Facebook,

a prominent SNS in the Philippines, is

a popular platform for searching for

job opportunities among the survey

respondents, followed by LinkedIn -- a

professionally inclined SNS. Burke

and Kraut (2013) claim that job

seekers tend to use non-

professionally inclined SNS for wider

reach among their networks and

through interactions conducted within

the platform. Similarly, a study

conducted in Vietnam reveals self-

efficacy and peer influence as the

main pull factors of job seekers

searching for jobs on Facebook (To

et. al, 2022). Meanwhile, LinkedIn has

been popular for professional

networking since its launch in 2003. Unlike other SNS, LinkedIn is the leading

professional digital space with 950 million users across 200 countries worldwide

(LinkedIn, n.d.) which allows users to display their educational attainment, professional

experience, skill sets, and training, among others. Job seekers are cognizant of how

Indeed

Facebook

OnlineJobs.ph

UpWork

Jora

GlassDoor

Workabroad.ph

VirtualStaff

PESO

FreeUp

Philippine Go

GrabJobs.co

Talent.com

GoogleCareers

NextGen Jobs

Other DLMIs used by jobseekers

Figure 27. Other DLMIs used by job seekers

Figure 28. Other commonly used DLMI by job seeker by count

Indeed

Facebook

OnlineJobs.ph

UpWork

Jora

Philippine Go

GlassJobs

PESO

Workabroad

Philjobnet

Other commonly used DLMI by

jobseeker

digital footprints affect the hiring decisions of employers (Kaur et. al, 2020) hence, building

and maintaining a career-oriented digital footprint on these platforms are detrimental to

having prospects of favorable employment opportunities (Curran et. al, 2014).

Interestingly, passive candidates from Hosain and Liu's (2020) study recorded a positive

experience on LinkedIn due to the availability, reliability, and timeliness of job vacancy

information and job seeker professional experience.

Apart from the objectives of using SNS, the process of registration, publication of job

vacancies, and application for employers and job seekers in SNS and DLMIs are different

from one another. On one hand, DLMIs and professional networking sites require job

seekers to provide their professional experience and personal information before

navigating the platform for job vacancy postings. On the other hand

Freelancing websites are cited as one digital platform for employment

opportunities. The online survey was able to gather responses from freelancers who

cited popular websites looking for freelancing opportunities. These websites are

OnlineJobs.ph and Upwork. In DLMIs, there are limited vacancy posts and job seekers

directly apply to employers. However, it is important to note that job seekers using DLMIs

are different from freelancers using digital platforms for employment opportunities. There

are presently 1.5 million Filipinos registered, per a report from GCash and Payoneer

(Rayner, 2023). There are several explanations for the rise of independent contractors.

Among these is the expanding use of digital media channels. The Philippines' freelancing

income increased by 208% in 2020, compared to a mere 35% growth in 2019, as reported

by the Philippine Institute for Development Studies (PIDS). thus, given that the pandemic

hastened the transition to digitalization. Unlike DLMIs that require employer verification

through the submission of SEC Registration, BIR forms, and DTI Certificates, freelancers

only use digital platforms to meet the required service of the client.

Payment of fees in DLMIs

The majority of the respondents have free access to DLMIs while a small number

paid for premium features. Out of 214 respondents, six (6) of them answered that they

paid fees to DLMIs, while the remaining 208 answered no. As such, despite the free use

of services of DLMIs for job seekers, it is still compliant with our domestic laws.

Regardless of whether or not DLMIs are registered with DTI, SEC, and other licensing

authorities, they should follow laws and regulations covering them. Of the six (6)

respondents that answered “Yes”, three (3) paid a fee ranging from 5,001 – 10,000 PHP;

one (1) paid 5,000 PHP and below; one (1) paid 15,000 – 20,000 PHP; and one (1) paid

20,001 PHP and above.

Experience on Fraudulent job postings

5,000 PHP and

below

5,001 –10,000

PHP

15,000 PHP –

20,000 PHP

20,001 PHP

and above

Range of fees paid by jobseekers

Figure 29. Range of fees paid by job seekers

2.80%

97.20%

Payment of fees in DLMIs

Yes No

Figure 30. Survey respondents payment of fees to use the

basic features of DLMIs

Respondents encountered fraudulent

job postings in DLMIs. The majority of the

job seekers did not encounter fraudulent job

postings using the DLMI with 55.61%, while

the remaining 44.39% experienced

fraudulent job postings. It is worth noting the

importance of the job vacancy postings

checking process of DLMIs. After checking

the job vacancy of their artificial intelligence

and software, another audit team will verify

the authenticity of the job vacancy and the

company itself by manually checking the

submitted requirements.

Due diligence on the side of respondents in reporting fraudulent job postings. After

encountering fraudulent job postings, 69 of the respondents reported the job posting

through the platform, 10 reported the job posting to law enforcement, DOLE, and other

national government agencies, while the remaining 16 “others” did not take action after

seeing the job posting.

Figure 32. Job seeker response on what actions did they take upon

encountering fraudulent job postings

Lack of follow-up from DLMIs on cases reported by job seekers in their platform.

After sending a report through the DLMI, the majority of 49.07% were not aware of the

actions taken by the DLMI, while 23.83% responded that DLMI took the job posting down,

Reported the job

posting through the

platform

Reported the job

posting to law

enforcement,

Department of Labor

and Employment and

other national

government agencies

Others

What actions did you take?

Figure 31. Job seeker response to fraudulent job postings

encountered in DLMIs

44.39%

55.61%

“Have you ever encountered a fraudulent job

posting in the online job platform?

Yes No

18.69% did not receive any action from the DLMI, the remaining 8.41% were blocked by

the employer from using the platform/not applicable. Although most job seekers are

unaware of the steps taken by the DLMI in response to fraudulent job postings, DLMIs

have settlement mechanisms and a complaint center where we can identify their

responsiveness to fraudulent job postings. In these cases, the DLMI will remove the job

posting and prevent the employer from using the platforms.

Data privacy concerns

Figure 33. Job seeker awareness of data retention policy

Most respondents are aware of the data retention policy of DLMIs. The majority of

the respondents (55.14%) were aware of the data retention policy of the DLMI before

registering on the platform, while the remaining 44.86% were not aware of the policy.

Further, almost all of them (81.31%) still access their CV and other personal information

even after months of not using the DLMI, while the remaining 18.69% no longer access

their CV and other personal information. Regardless of whether their cloud is located

inside or outside of the Philippines, all DLMIs are compliant with the Data Privacy Act

since, aside from hiring data processing officers, they ask for the consent of the job

55.14%

44.86%

Awareness on data retention policy

Yes No

seekers before registration, and they follow the data retention policy. Consequently, even

though DLMIs lack a committee or organization registered with the National Privacy

Commission, the NPC has not received any data privacy complaints or concerns about

DLMIs. They guarantee that the Vulnerability Assessment and Penetration Test carried

out by DICT-recognized service providers completely secures the data privacy of job

seekers and their clients.

Figure 34. Job seeker respondents who encountered data privacy concerns

Some respondents encountered data privacy concerns on websites. Most of the

respondents answered that they did not experience any data privacy concerns with the

DLMI (166); while others believed that their data was accessed by third-party users

without their knowledge and consent (35); 15 answered that they were informed that the

website was hacked, and their data was compromised; while the remaining eight (8)

believed that their data was sold to third parties. While the majority of the respondents

answered that they did not experience any data privacy concerns, DLMIs must still

examine their evidence of compliance and their obligations under DPA, which includes

establishing data privacy governance, conducting privacy risk assessment, managing

security risks, and data breach management, among others.

166

No, I did not experience any of this.

My data was accessed with third party users WITHOUT my

knowledge and consent.

I was informed that the website was hacked and my data was

compromised.

My data was sold to third parties.

Encountered data privacy concerns

Discrimination in digital platforms

Encountered Discrimination. Almost all of the respondents (83.64%) did not encounter

any gender-based discrimination from the employers whom they communicated with

through the platform, while the remaining 16.36% agreed that they experienced gender

based-discrimination. As such, 42 respondents were not aware of the actions taken, 25

answered that no action was taken by the DLMI, 21 respondents agreed that DLMI took

the job posting down, while 6 believed that DLMI blocked the employer from using the

platform. With the increasing and ever-evolving technology, job vacancies are more

transparent for women, as the majority of the respondents who participated in this study

are women. Likewise, we cannot deny the fact that employers can also see the gender of

the applicant, which may result in gender preferences and discrimination.

16.36%

83.64%

Encountered gender-based discrimination

Yes No

Figure 35. Survey response on "Did you encounter gender-based

discrimination?"

Traditional modes of seeking job opportunities

Survey respondents also tried looking for job vacancies through traditional modes,

among which visiting Job Fairs is the most popular. 69% of respondents said they

also tried the traditional mode of looking for employment. Among the traditional modes

listed, job fairs are the most popular. Similar to one of the findings of Sills (2014), job fair

remains a popular traditional mode of searching for employment, despite the prevalence

of online platforms, due to the immediate processing of candidates and opportunities for

being hired-on-the spot. Other traditional modes visiting PESO (82); in-person Referrals

(71); Personal visits to the company (49); Private Employment Agencies and newspaper

advertisement (23); campus tours (4); and other modes (5).

Improved pre-employment experience of job seekers in searching for job

opportunities in the digital space as compared to looking for jobs through

traditional means. Accessibility to the internet, ease of convenience, and cost-saving

Figure 36. Job seeker response on trying traditional mode of

seeking job opportunities

69%

31%

Have you tried other traditional modes in

seeking for job opportunities?

Yes No

Job Fairs

Public Employment Service Office…

(In person) Referral

Personal visit to the company

Visiting Private Employment…

Newspaper advertisement

Campus tours

Others

Traditional modes of seeking job opportunities

Figure 37. Survey respondents on traditional modes of

seeking job opportunities

measures associated with digital job searching effectively attracted job seekers to

consider the use of DLMIs.

DLMI services Most of the job seekers agreed that there are features of DLMI

comparable to traditional recruitment and placement. Survey shows that resume builders

(112); career tips (107); virtual career fairs (60); advertisements on free and paid training

(59); referrals (52); networking events (29); and others (6), are the services and features

of DLMI job seekers have encountered using the platform.

Figure 38. Job seeker response on the available features in DLMIs

Figure 39. Average timeframe of job seekers before being hired

The average timeframe before being hired takes less than a month for DLMI users.

Furthermore, 87 of the respondents were hired less than four weeks after the recruitment

process of the employer using DLMI, 67 were hired within 1 to 3 months, 44 were hired

more than 6 months, while the other 16 were hired within 4 to 6 months after the usage

of the platform. Note that since the majority of the respondents were hired less than four

weeks after the recruitment process, this can be attributed to the efficiency of DLMIs in

job search and contribution to our labor force. Choi (2011) claims that unemployed

workers are more likely to be employed faster by 14% when looking for job vacancies on

the Internet as compared to those who do not. In a study that focused on employed

workers, Stevenson (2006) finds that employed individuals who look for better jobs in

cyberspace have higher chances of finding another job therefore increasing employer-to-

employer flows. This observation denotes the importance of online recruitment reducing

the time of application and hiring of job seekers. Compared to the traditional mode of job

seeking, with the use of DLMIs and online job search, lesser cost for job seekers, lesser

application procedures for employers, and lesser paper for the company and environment

were noted in this study, thus, results in the increase of productivity of company.

Improved pre-employment experience by using DLMI. The majority of the

respondents agreed that the use of online job platforms improves the pre-employment

experience compared to the non-digital means of job searching. 64.95% of the

respondents are satisfied with the easiness of using and navigating DLMI, and 54.67%

believe that they were able to save money and conveniently look for a job through the

use of DLMI. In terms of job quality, 58.88% is satisfied with the quality of jobs meeting

the needs, expectations, and career aspiration of a job seeker, 61.68% is satisfied that

the jobs posted meets the job seeker’s current skills needed, 58.41% believes that the

employers and job vacancies posted in the platform are legitimate under Philippine laws.

On the visibility of job seekers, 58.41% agree that the DLMI shortened the days of the job

search phase, and 58.88% are satisfied with their visibility in the labor market among

1 to 3 months

4 to 6 months

less than four weeks

More than 6 months

Average time frame before being hired

employers. Overall, 57.94% of the respondents are satisfied with the overall pre-

employment experience using DLMI.

-7.01%-4.21%

-1.87%

7.01% 58.41% 21.50%

-20% 0% 20% 40% 60% 80% 100%

The use of online job platforms shortened the days of my

job search phase.

Neutral Strongly dissatisfied Dissatisfied

-8.64%

-2.80%

-0.93%

8.64% 58.88% 20.09%

-20% 0% 20% 40% 60% 80% 100%

The services of online job platforms improved my

visibility in the labor market among employers

Strongly dissatisfied Dissatisfied Neutral

Satisfied Very satisfied

-9.11%

-2.80%

-1.87%

9.11% 57.94% 19.16%

-20% 0% 20% 40% 60% 80% 100%

Online job platforms improved my overall pre-employment

experience.

Strongly dissatisfied Dissatisfied

Neutral Satisfied

Very satisfied

-7.71%

-0.93%

-0.47%

7.71%

64.95% 18.22%

-20% 0% 20% 40% 60% 80% 100%

The platform was easy to use and navigate.

Strongly dissatisfied Dissatisfied Neutral Satisfied Very satisfied

-6.07%

-1.40%

-0.47%

6.07% 54.67% 31.31%

-20% 0% 20% 40% 60% 80% 100%

I was able to save money through use of online job

platforms

Strongly dissatisfied Dissatisfied Neutral Satisfied Very satisfied

-11.45%

-2.34%

-0.93%

11.45% 58.41% 15.42%

-20% 0% 20% 40% 60% 80% 100%

The employers and job vacancies in the platform are

legitimate and registered under applicable Philippine

laws.

Strongly dissatisfied Dissatisfied Neutral Satisfied Very satisfied

Effect of DLMIs on the hiring and recruitment experiences of employers

Popular DLMIs used by employers

DLMIs used by employers

Jobstreet   

Kalibrr  

Recruitday  

Mynimo  

Jobs180  

Boss Job 

Xcruit (Formerly Workbank) 

Found it (Formerly Monster Jobs)  

Fastjobs.ph  

Jobfinder.ph  

Findwork PH 

ServeHappy  

Facebook

Indeed*

Jora

Table 7. DLMIs identified by employers

Location-based popularity of DLMIs. Employers who participated in the FGD

mentioned different DLMIs that were popular in their respective regions. For instance, in

the National Capital Region, most employers cited Jobstreet and Kalibrr as one of the

most used websites by both employers and job seekers. Meanwhile, employers from

Region VII referred to Mynimo as the most popular DLMI in the region. Participating

employers from Regions III and IV-A fervently mentioned Indeed and Jora due to its free

use of services while attaining the objective of recruiting qualified job seekers for the job

vacancy.

It is worth noting that employers have also identified SNS, primarily Facebook, in

conducting their sourcing of their applicants. They highlighted its free use and wider

reach. A representative from the retail industry underscored the convenience of using

SNS due to the volume of applications they receive upon posting vacancies. Expedited

sourcing and pooling of applications is helpful for HR practitioners is helpful in cases

where there is an immediate hiring to fill in positions to prevent an interrupted flow of

operations. This claim is also consistent with the findings of Sultana et. al (2018), wherein

employers from Bangladesh also conduct their applicant sourcing through Facebook

advertisements due to cost efficiency and immediate hiring.

Motivations for availing services and DLMIs to recruit job seekers

SELECT RESPONSES

Reasons for availing services

and activities of DLMIs

Cost efficiency 

Access to a wider talent pool  

The digital platform matches the applicants’ skills

with the demand of the vacancies 

The digital platform is easy to navigate and user-

friendly 

Digital platform offers other human resource

services that meet the company’s needs  

Others:

Beneficial for positions due for immediate hiring

and immediate processing

Availability of the system to prevent downtime

of operations

Professional and technical positions are posted

on online websites while other occupations are

usually outsourced

Table 8. Top reasons for availing DLMIs

Cost efficiency and access to a wider talent pool as the top reasons for availing the

services of DLMIs. c Employers who have limited financial resources tend to limit the

number of job postings in DLMIs as compared to companies that conduct mass hiring

and have their recruitment cycle all year round to maximize their financial resources and

the activities and services of DLMIs to their fullest. Set against this, the automation and

ATS built-in digital platforms address the administrative burden of screening and sorting

qualified applicants for vacancy positions. System availability and accessibility outside of

the office also increase productivity among HR professionals.

The talent pool in a digital platform is also an integral factor in deciding which DLMI to

avail. To note, employers are keen on this because they want to hire the right candidate

with the skills and competencies required for the position. Similarly, HR managers from

Gupta and Bhosale’s (2020) study raise the quality of resumes from job seekers and

candidates hired through digital channels to excel than those hired through non-digital

means. A vast, wide talent pool also shortens the pooling duration of employers for

technical positions and regulated professions. The findings of this study support the

claims of Okolie and Irabor (2017) on the benefits of conducting e-recruitment for

employers, such as time and cost savings, wider reach of vacancies; Mathis and Jackson

(2006) on the expanded pool of applicants and

A respondent underscored the use of professional SNSs, such as LinkedIn, and DLMIs

in hiring managerial and executive positions. It was further argued that the candidates for

these high-ranking positions are sourced through online platforms. When asked about

availing headhunting services for these positions, scouting potential candidates in

professional SNS is less expensive and lines of communication are more immediate with

the HR manager.

Table 9. Requirements of participating employers for selecting DLMIs

Access to the talent pool and service that matches the needs of the employer as

the top reasons for availing the services of DLMIs. When asked about the

requirements that employers look into upon availing the services to DLMIs, most prefer

that the digital platform has already a wide range of talent pool. The BPO industry tends

to be inclined toward the popularity of DLMIs among job seekers as it raises brand

awareness of their companies. An employer representative also expressed that a DLMI

has to offer a resume search service because they have hard-to-fill positions that must

be filled within a specific time frame.

The availability of financial resources remains important for employers. Employers

are also inclined to select DLMIs due to their free use of services. Some participants

expressed their unwillingness to incur costs for hiring and recruitment if sourcing and

pooling applicants can be fulfilled by using SNS for job advertisements. This reflects the

budget constraints and achieving the goal of most recruiters that as long as there are job

applicants, they are comfortable using just SNS.

SELECT RESPONSES

Additional tests outside DLMI

Emotional quotient

Supervisory and skills profiling

Trade test for tools

English test

Culture fit test

Typing capability

Onsite rider test, technical test

Table 10. Additional tests conducted outside of DLMIs by employers

Some assessments are conducted online while industry-specific tests which

require demonstration are conducted within the premises of the company or

commissioned to third parties. One of the innovative services of DLMIs in the digital

recruitment landscape is the provision of an online skills assessment test on their digital

platforms. However, the validity of these tests should only be used as a measurement

SELECT RESPONSES

Companies have specific

requirements for selecting

DLMIs

Range of database and talent pool

Complete package of HR solutions

Branding and marketing strategies

Free use of services

Resume search service

and not be treated as a nationally recognized or industry-grade certification. Skills

assessments in DLMIs, thus, serve as a filter to further sort candidates' demands of the

position.

Employers conduct another round of onsite or online competency-based assessments,

skills-based tests, and ability tests to properly assess the job candidate. It should be noted

that the passing rates of these exams are determined by the metrics set by the employer.

Skilled occupations in the construction sector are required to undergo a trade test for tools

before proceeding to the interview stage. Meanwhile, job seekers in the BPO industry

must receive a passing score on the English test for voice accounts and typing speed &

accuracy test for non-voice accounts. Representatives from the transportation and

storage industry brought up the conduct of onside rider tests and technical tests which

are always conducted onsite. He furthered that this is a crucial test for job seekers in the

industry because private individuals will be transported. Job seekers in the wholesale and

retail trade are further assessed through their personality and demeanor if they are

inclined to sales.

Vacancies requiring regulated professions need not undergo competency-based

assessments. Job seekers are instead required to provide a copy of their government-

issued licenses, and dependent on the employer, take the culture-fit test or prescreening

test. For example, a teaching license is a required document to be submitted by a job

seeker. After passing the screening phase, selected job seekers are required to conduct

a teaching demonstration before proceeding to the next stage.

Concerns on the use of DLMIs and SNS in recruiting job seekers

Table 11.Employer concerns about the use of DLMIs and SNS in recruitment

PLATFORM

SELECT RESPONSES

DLMIs

High costs of services

Applicability and scope of Philippine laws on

these websites

Heavy traffic to the website

Certain hard-to-fill positions have limited job

applicants even if these are posted in DLMIs

The volume of job applications despite the job

seeker not meeting the required skills and

competencies of the vacancy

SNS

The volume of comments in the original post

Expression of interest to work from minors

Employers relayed their concerns about the use of DLMIs and SNS for posting job

vacancies. An employer raised the increased costs of services over the past years

because their company availed before the pandemic. Some representatives also

mentioned the heavy traffic of the website and the volume of job applications that they

receive. Job seekers in DLMI platforms tend to apply for job vacancies that do not suit

their skills, competencies, and work experience.

Job vacancies in SNS reach different audiences, including underage. Employers

who sought to post their vacancies in SNS have encountered a volume of applications in

their emails. In some instances, they have received a large number of comments on the

original post and inquiries via chat. An employer from the transportation industry reported

that they received an inquiry through SNS on the job posting from an underage individual

who expressed a willingness to work for the company.

Table 12. Select responses from employers on questions about data privacy

AREA

SELECT RESPONSES

Job seeker info that can be

accessed

[DLMIs] Personal information and work

experiences, Photo is optional

Linked social media profile

Download Resume

Keep it just in case the need arises

Qualified job seekers who passed the initial

screening test

Employer access to job seeker information is limited to those who applied for their

job vacancies. Participants further clarified that no feature allows an employer to search

for a specific job seeker in the digital platform or simply access the whole job seeker

database. Following this, resumes/CVs of the job applicants are available for download

to employers. Some participants expressed they only download the resumes of qualified

applicants or those who will be interviewed. Meanwhile, some employers download the

resumes of job applicants to conduct a manual job-matching process.

Downloading of resumes is not available in the resume search service. Employers

who avail this service are restricted from downloading job seeker documents. Information

that can be accessed through this feature involves personal information, contact details,

work experience, and skills. HR practitioners contact job seekers found through this

service either through the platform or their contact details provided, then, invite them to

apply for the job vacancy.

Traditional modes of recruitment

The traditional mode of

recruitment

Internal Hiring 

Referral 

Outsourcing/Placement Agencies 

Newspaper Advertisement 

Advertisement through the Public Employment

Service Office 

Job Fairs 

Campus Tours 

Posting on the company website 

Headhunting 

Table 13. The traditional mode of recruitment

SELECT SENTIMENTS

Advantages of conducting the

recruitment process through

non-digital means

Qualitative assessment of the job seekers

Fewer expenses incurred for employers

The traditional mode of recruitment expedites the

process of hiring

Concentrated for certain occupations such as

non-techy, elementary occupations

Open-door recruitment in the company attracts

Gen-Z job seekers due to office ambiance

Face-to-face recruitment and hiring serve as a

commitment to stakeholders

Company-centric promotion

Table 14. Select stakeholder sentiments on the advantages of conducting the recruitment process to non-digital means

Traditional modes of recruitment are still being conducted. Employers in certain

industries prefer referrals. Consistent with the findings of Sills (2014), simultaneous

conduct of traditional and digital recruitment is practiced on the side of employers. The

emergence of e-recruitment did not lead to the decline of conducting traditional means of

recruiting or online job advertising. Participating employers expressed concurrence that

they still conduct one or more traditional modes of recruitment as indicated in Table 9.

The views garnered on the conduct of non-digital means varied from one employer to

another due to their industry placement and the respective peculiarities demanded by

their occupations.

A participant raised the idea that internal hiring promotes company-centric promotion

which raises employee morale and boosts company competitiveness. This also has one

of the least expenditures since HR practitioners would not spend resources to train and

orient the employees on organizational processes, policies, and culture. Meanwhile,

representatives from the maritime shipbuilding industry expressed a high preference for

employee referrals due to the expedited character background investigation. A sense of

trust in the job seeker is already established due to the character testimonial provided by

the internal employee. For budding Business Process Outsourcing (BPO) companies,

the impact of open house recruitment is twofold. On one hand, mass hiring of job seekers

is easily conducted and immediately processed for training or employment. On the other

hand, feedback on the office ambiance and infrastructure spreads through word of mouth

which attracts the Generation Z labor force to enter the BPO industry. This organic

marketing approach has the least cost for BPO companies and increases brand

awareness. In terms of outsourcing workers, an HR practitioner from the health industry

specified that utility workers, housekeeping, and security personnel are usually

outsourced while regulated professionals are recruited in DLMIs. An interviewee from the

agriculture industry testified that conducting community-based recruitment reflects the

commitment of the stakeholders to nurturing their land area.

Employer preference on traditional means of recruitment to assess soft skills of

job applicants. In-person interviews provide recruiters with a glimpse of the applicants’

willingness and motivation to work in the company. Employers also floated that soft skills

remain one of the important qualifications they look for in job seekers aside from having

the technical competence required by the job vacancy.

Employers seek rank-and-file employees through non-digital means while

supervisory, managerial, and executive positions are posted in DLMI platforms due

to access to a wide talent pool. Online websites have been deemed useful for

employers in looking for suitable candidates in managerial and executive positions.

DLMIs attract highly talented and qualified individuals who are suitable for managerial

and executive positions. Their experiences, as indicated in their profiles, have eased the

talent search of recruiters. However, it must be cautioned how only those digitally literate

can cover the white-collar occupations. Karaoglu et. al. (2022) finds a correlation between

digital literacy in searching for job opportunities on the Internet and lower education levels.

Furthermore, digitally disadvantaged individuals are exposed to risks of being left behind

in the use of modern technologies (Lindsay, 2005) therefore limiting their career choices

and increasing the probability of being exploited.

SELECT RESPONSES

Disadvantages of

conducting the recruitment

process through non-digital

means

Location and distance may not be suitable for

employers and job seekers

Time-consuming

An additional layer of administrative work

Incurred costs are higher as compared to digital

Increased competition between companies

Competency in internal hires does not meet the

job vacancy

The limited reach of the job vacancy

Table 15. Select responses from employers on the disadvantages of conducting the recruitment process through non-digital means

Disadvantages of non-digital means of recruitment. Albeit the advantages of

traditional modes of recruitment, employers also expressed their corresponding

disadvantages. Employers raised how this mode of recruitment consumes time due to

travel and could potentially incur higher costs than promoting job vacancies digitally. This

is especially true when the location of a career fair is not within the vicinity of the employer

despite expressing their participation in the said function. Face-to-face (FtF) recruitment

also adds another layer of administrative work since the submitted documents by the job

seekers must be scanned, encoded, and properly stored. For industries with regulated

professions, job vacancies have a limited reach which can potentially affect the conduct

of their operations. In some instances, employers tend to hire external applicants for

vacant posts because the competencies of the internal applicants do not fit the skills

required by the job vacancy. The findings of Slavic et. al. (2017) suggest that the younger

generation of the workforce is not easily attracted through the traditional modes of

recruitment and selection and recommend the combined use of non-digital and digital

modes to address the concerns and demands of job seekers.

Table 16. Select employer sentiments on their opinion on the question “What do you think should be the roles and responsibilities of

the government?”

SELECT RESPONSES

Roles and responsibilities of

the government

Inspection on the side of the government to ensure

reports from job seekers are addressed.

Formation of a committee that has jurisdiction over the

activities and services of DLMIs and monitors job

vacancies in SNS

Information campaign on the roles, responsibilities, and

limitations of posting any information on digital platforms

A list of legit and validated DLMIs from DOLE especially

those that post overseas employment

Improve the competitiveness of government portals to

compete with DLMIs

Despite the impact of DLMIs in the recruitment and hiring cycle of employers,

concerns are still being raised about the formers’ compliance with national laws

and, the safety of job seekers. A participant suggested the government inspect these

DLMIs to verify if there are reports from job seekers addressed properly. Taking into

consideration that the nature of transactions is conducted online, an employer suggested

the creation of an interagency committee to monitor job vacancies, data privacy concerns,

and job seeker reports in DLMIs and especially in SNS that have jurisdiction over the

activities and services of DLMIs.

It was suggested that DOLE should also release a list of verified DLMIs, especially those

that post overseas employment opportunities, which would inform employers of the

legality of their operations and protection against cybercrimes and data privacy concerns.

Doing so protects employers and job seekers alike from criminal activities and adds a

layer of security on both sides in conducting their hiring and recruitment processes in the

digital space. It is also imperative for the government to conduct an information campaign

on the roles, responsibilities, and limitations of all stakeholders in the labor market of

conducting recruitment and hiring in the digital space.

An employer who has availed the services of DLMIs and the official government jobs

portal suggested improving the competitiveness of Phil Job Net to attract more employers

and job seekers. It was also mentioned that the quality of job seekers in the government

portal does not match the required skills and competencies of the job vacancies. A large

number of job seekers have adapted to the digital age and are tech-savvy in navigating

the digital space. Thus, it is imperative to attract this tech-savvy generation through the

use of digital apps, mobile applications, and increased campaigns in SNS to bring closer

job vacancies to curb unemployment.

Social media leaves a vacuum for risks among job seekers and employers. It was

generally agreed that social media recruitment needed regulation. Even though no

complaint was made about private DLMIs, some employers raised concerns about

unregulated recruitment on Facebook and other social media platforms. They expressed

concern about illegal and scam recruiters using social media to recruit.

CONCLUSION

In the Philippines different policies in place cover the activities and services of DLMIs,

however, none covers labor and employment. The definition of recruitment and placement

includes a wide range of acts that apply to both traditional and digital recruitment and

placement activities. There is a difference, too, in the way DLMIs in the digital sphere and

traditional private employment agencies carry out these tasks. Any performance of the

acts listed could be interpreted as recruitment and placement activity. The Labor Code of

the Philippines, as amended, contains the description of the activity that makes up

recruiting and placement in its Implementing Rules and Regulations. As a result, the

Department may use its regulatory authority over organizations that handle hiring and

placement.

All services provided by DLMIs, which charge fees only to businesses, are free for job

seekers and are intended to increase their employability in the labor market. Job seekers

can use these websites to look for genuine job postings, advertisements for skill

development, and new chances. While some DLMIs provide employer branding in their

packages, the majority of them primarily provide job listings. DLMI services come with

features and tools to reduce the administrative work involved in finding candidates and

submitting applications. Unlike PEAs, DLMIs in the Philippines do not provide end-to-end

recruitment and selection processes through their platform, software, or tools.The

average wait time for hiring for DLMI users is less than one month, indicating that job

seekers' pre-employment experience is better when they utilize digital platforms to hunt

for possibilities than when they use traditional methods. Job seeker respondents utilize

SNS, freelance websites, digital domains of PESOs, and additional DLMIs in addition to

the ones discovered by DOLE. Respondents to the survey also attempted traditional

methods of finding openings, the most common of which being attending job fairs.

DLMI has also helped employers hire and recruit more people. Employers seek rank-and-

file workers through non-digital means, and DLMI platforms are used to post supervisory,

managerial, and executive positions because they have access to a large talent pool.

However, traditional recruitment methods are still used, and some industries prefer

referrals. As a result, worries over the former's adherence to regulations and the security

of job searchers persist, even in light of the influence of DLMIs on businesses' hiring and

recruitment cycles.

Undeniably, the world of work has adapted to the societal and technological changes of

the 21st century. The ease of convenience brought by the digital age has revolutionized

the way recruitment and placement are conducted. The emergence of new technologies

and shifts in the economic landscape on a global scale signals another wave of

advancements in the recruitment landscape. It is also worth noting that digital space

remains a vacuum of complexities that remain untouched by the regulatory powers of a

state. Approaching this complex infrastructure necessitates collaboration among the key

stakeholders in the labor market intermediation. Employers and workers will fully take

advantage of these innovations to maximize the gains of technological efficiency,

convenience, and productivity. However, while these two actors are quick to adapt to the

changing world of work, the government is lagging in fulfilling its state responsibilities in

the digital space. In the case of the Philippines, the private sector – led by DLMIs-- has

ushered the labor market into an era of e-recruitment, easing the burden of talent

attraction and job searching from employers and job seekers alike. The software,

capabilities, tools, and platforms designed by DLMIs removed the need for physical

spaces to facilitate recruitment, sourcing, and job matching. This revolutionary change,

however, has confronted the Department with a policy challenge of exercising its

regulatory powers among DLMIs because traditional modes of conducting recruitment

and placement activities are being conducted by PEAs. A government action should

center on the protection of the welfare of job seekers, but this must not impede nor limit

the participation of the private sector in cultivating an environment conducive to current

trends in the labor market. Private and public sector collaboration in facilitating

employment opportunities in the digital space, combined with a viable policy approach,

cultivates an environment for economic growth, and remunerative and decent

employment. Ensuring a safe, ethical, and fair recruitment landscape in cyberspace is a

shared responsibility between and among the key actors in the labor market.

RECOMMENDATIONS

Intermediation in the digital space by non-traditional intermediaries denotes the

transformative changes brought by Fourth Industrial Revolution in the world of work.

These tectonic shifts will likely continue and further gain momentum shortly, signaling the

emergence of opportunities and challenges in the labor market. Considering the move

towards digitization where most transactions have migrated in digital space. Given the

foregoing, the study recommends the following policy options:

I. For the government

1. A policy specific to the peculiarities of

DLMIs. At present, job seekers and

employers alike have sought the services

of DLMIs for remunerative job

opportunities which will likely continue in

the coming years with more innovations to

come to complement the changing world of

work. In comparison to DLMIs, PEAs

operate in physical spaces and are paid by

employers to advertise job vacancies,

screening assessments, and interviews on

their behalf. However, the online services

of DLMIs are mainly focused on providing

an online platform for advertising job

opportunities, increasing the brand image

of an employer, and an online system to

augment the administrative process of

advertising, shortlisting, and screening

potential candidates for job vacancies. To this end, a clear-cut policy that accommodates

the peculiarities of DLMIs must be pursued to address employment facilitation in

cyberspace and crosscutting issue of data privacy. Fundamental to the operationalization

of this proposed regulatory framework is the government’s responsibility to ensure labor

market efficiency and protect workers in the labor market. The framework contains five

essential elements to promote an environment conducive to industry growth while

ensuring labor market efficiency and workers' protection. Hence, oversight on

employment facilitation, whether conducted in the digital space or not, must be

coordinated at the national level. Legal personality establishes legitimacy and compliance

under Philippine laws. It is important to note that FINL limits foreign ownership to 25% in

recruitment and placement activities to safeguard national interests in ensuring a

competitive labor market for Filipinos. Further, Filipino ownership of businesses engaged

in recruitment and placement promotes industry growth. Another essential element in the

proposed regulatory framework is a license or recognition from DOLE to conduct

recruitment and placement activities for local employment. Recognizing the intermediary

roles of the private sector that revolutionized the contemporary recruitment and hiring

Figure 40. Proposed regulatory framework for DLMIs.

landscape in the Philippines also establishes their status as partners in nation-building

and raising the competitiveness of the workforce. A license or recognition from the

Department adds a layer of protection for job seekers from illegal recruiters and entities

conducting criminal activities. Lastly, the intersecting nature of cybersecurity and data

privacy must be fully realized in consideration of the shifting trend toward digitization. The

Department must be agile to transition toward digital governance in anticipation of

emerging trends in the world of work and technological shifts. This can be done by

pursuing capacity-building activities with DICT and NPC to properly incorporate the

technicalities of the subject matter and guarantee that DOLE’s policies are compliant and

aligned with cybersecurity priorities and data privacy thrusts.

2. Strengthen and increase information dissemination campaigns to protect

job seekers in the digital space. The prevalence of online fraud and criminal activity

has heightened in recent years. A strong information dissemination campaign from the

Department would further raise awareness among the labor force on how they will protect

themselves in digital platforms while searching for employment opportunities. This can be

done by integrating the information campaign into the career guidance program and labor

education modules of the Department. Public Employment Services Offices are also

encouraged to capitalize on this dissemination campaign.

3. Harmonized efforts for skilling opportunities between DLMIs and

government agencies. The government and DLMIs both share the advocacy of raising

the employability of the workforce through skilling opportunities. The convergence of

private and public sector skilling opportunities promotes a coordinated approach to

addressing the current challenges of the labor market. This initiative would further

reconcile the industry-specific in-demands skills and prioritization of skills training to

provide job seekers with the ability to meet the labor demand.

4. Benchmark technologies used by DLMIs to improve the government jobs

portal. The private sector has successfully integrated automation, artificial intelligence,

and other IT systems to improve the user experiences of job seekers and employers.

The government can benchmark the technologies infused in the DLMI platforms to

improve the government jobs portal to further attract employers and job seekers alike.

Doing so will have a two-fold effect, one is to facilitate job matching while the other is to

improve labor market information across low-skilled and high-skilled professions.

II. For DLMIs

1. Empower DLMIs to form an industry organization and adopt a business code

of conduct (CoC) aligned with national legal frameworks and development thrusts.

The process of recruitment and hiring has migrated to the digital space to reap the

benefits of digitalization and for wider reach than before. To this end, these platforms are

equipped with emerging technologies underlining the need to continuously innovate to

keep up with competitive industry trends and global demands. It is important to note,

however, that these innovative approaches in the private sector are not easily caught up

by the public sector. Thus, businesses must express due diligence in facilitating

employment opportunities in the digital space between job seekers and employers. A

business CoC centered on a mutually shared responsibility of protecting and promoting

the rights and welfare of job seekers among industry players must be formed. This

document may further include but is not limited to the following: (1) industry outlook, (2)

action plans to support government initiatives to improve labor market conditions and

increase the competitiveness of the workforce, (3) cybersecurity and data privacy

standards, (4) compliance to national legislations in support of protecting and promoting

the rights and welfare of job seekers.

2. Enhanced partnership between the government and DLMIs in terms of LMI.

Addressing the prevailing job-skills mismatch in the labor market requires accurate,

timely, and organized LMI. Additional statistical data on the demographic profile and

skills information from registered job seekers in DLMIs would serve as crucial inputs in

crafting policies to address job-skills mismatch, provision of skilling opportunities and

further improve employment facilitation services of the government.

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