Through its strategic initiatives with Paywatch, the IBPAP is empowering employees to improve their financial wellness, a move which boosts talent attraction and retention by the industry.

The IBPAP (IT & Business Process Association of the Philippines) has entered into a partnership with Paywatch, Southeast Asia’s leading Earned Wage Access (EWA) service provider. This strategic move is part of the IBPAP’s ongoing commitment to help IT-BPM (Information Technology and Business Process Management) companies to address the current talent shortage. EWA programs have, in the US and UK, been shown to increase retention, improve recruitment and enhance productivity.

Paywatch’s implementation of Earned Wage Access–also called on-demand pay–empowers employees by giving them access to a portion of their earned wages before payday. By doing so, EWA provides workers with a debt-free way to improve the management of their personal finances. In effect, it is a simple and effective method to remove employees’ reliance on costly high-interest loans and salary advances. 

EWA is a proven solution that the IBPAP hopes will make the IT-BPM sector more attractive to its workforce. To date, Paywatch has pioneered EWA in companies across many Asian countries. The company also has partnerships with global banks and the United Nations Capital Development Fund (UNCDF).

“The IT-BPM sector in the Philippines holds immense potential,”  said Sandeep Mulajkar, Managing Director of Paywatch Philippines, “yet attracting and retaining top talent remains a challenge. Addressing employees’ financial concerns by offering EWA is crucial to overcoming this obstacle.”

The Benefits of Earned Wage Access

Earned Wage Access (EWA) gives employees access to a portion of earned but unpaid salaries. As they have already earned this amount, they can withdraw it interest-free, paying only a small transaction fee without any hidden charges. And what’s more, they can do this on-demand, anytime and anywhere.

In an article published on The Business Manual, Rowell Del Fierro, President of Paywatch Philippines, wrote that EWA “intuitively is a valuable benefit to employees who can now access their earnings to address unforeseen expenses or tide over the stress from ‘petsa de peligro.’” 

For employers, Del Fierro cites EWA as instrumental in improving employee retention and increasing productivity.

Strengthening the IT-BPM Industry in the Philippines

The partnership between IBPAP and Paywatch is a collaboration that strengthens the IT-BPM industry as a whole.

For the IBPAP, the partnership supports its Industry Rebrand campaign, which was launched in March 2024. The campaign seeks to increase sector employment to 2.5 million by 2028.

In a statement, Jack Madrid, President and CEO of IBPAP focused on creating a resilient workforce for IT-BPM companies. He said, “Our collaboration is consistent with IBPAP’s intention towards building a resilient workforce to ensure a thriving and competitive IT-BPM sector. By introducing EWA to our member companies, we aim to help improve their ability to attract, engage, and retain a skilled workforce.”

For Paywatch it is part of the ESG (Environmental, Social and Governance)-focused company’s mission towards financial inclusion and empowering employees.

According to Sandeep Mlajkar, “We believe that by empowering employees with financial tools such as EWA, we can help drive the IT-BPM industry forward, ensuring it remains a cornerstone of the Philippine economy while enhancing the financial security and satisfaction of its workforce.”