The offshore staffing industry has a retention problem, and most companies in the space have little incentive to solve it. When agencies get paid per placement or per seat filled, churn becomes a business model rather than a bug. Konektao, a US-based Employer of Record operating in the Philippines, is trying a different approach: treat the people you place well enough that they actually stay.
Founded by Nikita Mercado, a Filipina American entrepreneur whose background spans global health, public policy, and law, Konektao serves as the legal employer for Filipino professionals working with companies across the United States and Europe. The company manages the full employment lifecycle, including DOLE compliant employment contracts, payroll administration, tax filings, and statutory contributions such as SSS, PhilHealth, and Pag IBIG. This allows startups and growing businesses to build teams in the Philippines without establishing a local entity or navigating unfamiliar employment regulations.
What sets Konektao apart is its belief that hiring is only the beginning of the relationship. Rather than stepping away once a role has been filled, the company provides ongoing workforce management, employee support, and operational guidance designed to help both clients and employees succeed over the long term. The objective is not simply to make placements, but to build teams that remain stable and productive.
Comprehensive Benefits as a Retention Strategy
One of the company’s most distinctive investments is employee healthcare. Every professional employed through Konektao receives comprehensive HMO coverage that includes medical, dental, and vision benefits, with coverage extending to immediate family members. While many offshore staffing providers offer only the minimum required benefits, Konektao views healthcare as an investment rather than an expense.
The philosophy is straightforward. Employees who feel secure and supported are more likely to remain engaged, perform consistently, and build lasting careers. For clients, stronger retention reduces the hidden costs associated with turnover, repeated hiring, and lost productivity.
Nikita Mercado’s perspective comes from operating on both sides of the equation. Having built operational teams within United States startups while managing Philippine based workforces, she has seen firsthand how cultural misunderstandings, inconsistent support, and compliance challenges often undermine otherwise successful offshore teams. Her background in policy and law further shapes the company’s emphasis on responsible employment practices and long term workforce stability.
Expanding Beyond the Philippines
Konektao primarily partners with growth focused companies seeking professionals across operations, customer service, recruiting, finance, executive support, and other business critical functions. Rather than competing solely on labor costs, the company positions itself as a long term workforce partner focused on building reliable, engaged teams.
Looking ahead, Konektao plans to expand beyond the Philippines into additional high growth talent markets, evolving into a multi country Employer of Record platform. Future investments include technology that simplifies hiring, onboarding, payroll, and compliance, alongside leadership development and career advancement programs that help employees grow alongside the companies they support.
The company’s name reflects its broader philosophy. “Konekta” means connect, while “tao” means people in Filipino. Together, they represent a belief that successful global hiring depends on more than filling open positions. It requires building lasting relationships supported by compliance, culture, and meaningful investment in people. As Konektao expands into new markets, the company’s long term success will depend on whether retention-first philosophy can scale alongside its growth.
