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Philippine Statistics Authority

Highlights of the 2021/2022 Integrated Survey on Labor and Employment (ISLE) Module on Establishments’ and Workers’ Productivity During The COVID-19 Pandemic: CY 2021 and July 2021 to June 2022


The 2021/2022 Integrated Survey on Labor and Employment covers formal establishments employing at least 20 workers. This module on Establishments’ and Workers’ Productivity during the COVID-19 Pandemic gathered data on productivity improvement programs and gainsharing practices with additional questions on productivity of work-from-home arrangements during COVID-19 pandemic.

A. Productivity Improvement Program (PIP) and Gainsharing Practices: CY 2021

1. Two out of Five Establishments have PIPs

a. Of the total 36,342 establishments employing 20 or more workers, 14,774 establishments or 40.7 percent implemented various PIPs in 2021. This proportion indicates an increase of 0.9 percentage point from 39.8 percent in 2019. (Figure 1 and Table 1)

b. Within each industry group, Human Health and Social Work Activities Except Public Health Activities recorded the highest proportion of establishments with PIPs at 51.8 percent of the total establishments for the industry. This was followed by Electricity, Gas, Steam, and Air Conditioning Supply with 51.4 percent and Accommodation and Food Service Activities with 50.8 percent. On the other hand, Professional, Scientific, and Technical Activities reported the least at 31.5 percent. (Table 1)

c. By region, Cagayan Valley registered the highest proportion of establishments with PIPs at 71.0 percent of the total number of establishments in the region. This was followed by Cordillera Administrative Region with 55.1 percent and MIMAROPA Region with 52.8 percent. On the other hand, Zamboanga Peninsula registered the lowest establishments with PIPs at 22.7 percent. (Table 2)

2. 7S of Good Housekeeping was the Top PIP Implemented

a. Among establishments that implemented PIPs, the most common PIP was 7S of Good Housekeeping at 64.3 percent. This was followed by Continuous Process Improvement with 54.6 percent and Client Satisfaction Measurement with 51.5 percent. (Figure 2 and Table 3)

3. Development of PIPs Implemented were Mostly led by the Establishment’s Management

a. Management was identified as the lead program developer with 85.8 percent of the total number of establishments with PIPs. Supervisors/line leaders and rank-and-file/production workers followed with 21.0 percent and 14.4 percent, respectively. Meanwhile, Unions had the least share on the groups of individuals who developed/initiated the PIPs with 0.5 percent. (Figure 3 and Table 4)

4. Majority of Employees Covered by PIPs were Rank-and-File/Production Workers

a. Around 1.67 million employees were covered by the PIPs, 56.0 percent of which were male employees, while the remaining 44.0 percent were female. (Figure 4 and Table 5)

b. By type of employee covered by PIPs, 86.3 percent were rank-and-file/production workers, 8.6 percent were supervisors/foremen, and 5.2 percent were managers/executives. (Figure 4 and Table 5)

5. PIP Objectives

a. The most cited objective on implementing PIPs was improving the product or service quality at 72.9 percent of the total establishments. This was followed by cost reduction with 72.5 percent and complaints reduction with 66.9 percent. (Figure 6 and Table 6)

b. By sub-objectives, skills training was the highest recorded activity to improve product or service quality at 89.7 percent. (Table 6)

6. Gainsharing Schemes/Practices were Present in Some of the Establishments with PIPs

a. A total of 5,438 establishments or 36.8 percent of the establishments with PIPs had gainsharing schemes/practices or provided incentives or bonuses for improved performance of their employees in 2021. Provision of cash was the usual practice for both gainsharing and profit sharing with 66.1 percent and 11.4 percent of establishments, respectively. Moreover, provision of non-cash incentives was also practiced for both gainsharing and profit sharing by 33.9 percent and 5.7 percent of establishments, respectively. (Table 7)

7. Majority of Employees that Benefit from Gainsharing Schemes/Practices were Rank and File/Production Workers

a. A total of 656,493 employees benefitted from gainsharing schemes/practices, 55.1 percent of which were male employees while the remaining 44.9 percent were female. (Table 8)

b. By type of employee, 87.0 percent was recorded as rank-and-file/production workers, while supervisors/foremen and managers/executives accounted for 8.6 percent and 4.4 percent, respectively. (Figure 7 and Table 8)

B. Productivity of Work-from-Home (WFH) Arrangement during the Coronavirus disease of 2019 (COVID-19) Pandemic: July 2021 to June 2022

1. Establishments Adopted WFH Arrangement

a. During the period July 2021 to June 2022, there were a total of 9,822 establishments or 27.0 percent of the total establishments allowed WFH arrangement during the COVID-19 pandemic. (Table 9)

b. By industry group, Education Except Public Education posted the highest proportion of establishments that implemented the WFH arrangement at 63.0 percent. This was followed by Information and Communication with 58.5 percent and Electricity, Gas, Steam, and Air Conditioning Supply with 49.7 percent. Meanwhile, Accommodation and Food Service Activities had the least proportion at 9.9 percent. (Figure 8 and Table 9)

2. Weekly Progress/Accomplishment Reports were the Main Performance Monitoring System Employed

a. Majority or 68.1 percent of the establishments under WFH arrangement implemented a weekly progress or accomplishment report to monitor the performance of its employees. Other performance monitoring systems implemented by establishments were the conduct of regular meetings and feedback sessions at 47.9 percent and the installation of online productivity trackers on work computers with 20.1 percent. Tracking of customer feedback through satisfaction surveys was the least used performance monitoring system at 9.3 percent. (Figure 9 and Table 10)

3. Challenges Encountered from Adopting WFH

a. During the period, the top three challenges encountered by establishments under the implementation of WFH arrangement were no or intermittent internet connection (60.1%), difficulties in monitoring employee performance (40.1%), and difficulty in communicating with employees (29.5%). (Figure 10 and Table 11)

4. Continued Implementation of WFH

a. Among establishments that adopted WFH arrangement, more than half (63.5%) of the establishments mentioned that they will no longer continue the implementation of WFH arrangement on a permanent basis. On the other hand, there were establishments that are willing to continue the implementation of WFH arrangement on varying scales. About 19.2 percent had plans to continue implementing WFH but on a smaller scale or on a minimal number of units in the establishment, 16.1 percent stated that they will continue the set up as currently implemented, and 1.2 percent of the establishments were willing to continue implementing WFH arrangement on a bigger scale or on majority of the operations. (Figure 11 and Table 12)