Table 6

PESTEL Risk
Impact Assessment
Factors Assess
ment Impact
Potential Time Frame Prioritization
How might the factor on the left Catastrophic 0-6 months Extreme
impact the organization? Major 6-12 months High
Moderate 12-24 Mediu
Minor months m
Political 24+ months Low
1. Wage Required compliance Minor 0-6 months Low
Order
Increases
2. Government Compliance with government
Policies requirements relative to training Minor 24+ months Low
certifications and grant for project
funding (e.g. , environment funding)

May create talent drain particular for Modera 6-12 Medi

technical skills. te months um
 Political
2. Compliance with government
Government requirements to labor law/ Code Moderate 12-24 months High
Policies ( e.g., DO 18-02, contractualization,
benefits, holiday pay and benefits
concern, etc )
3. Shareholder/ Not applicable
Stakeholder
needs and
Demand
4. Lobbying/ Infiltration of militant
Pressure Group groups/organized group presence Major
(Union-related 12-24 months High
groups) Continuity of operations Catastro
phic 24+ months High

Safety of employees / stakeholders 24+ months High

Major
Lost opportunity cost / profit Medium
Moderate 24+ months
Adverse local public or media
attention or several complaints from 12-24 months Medium
barangay/community Minor
 Political
4. Lobbying/ Company image as perceived by Major 12-24 months High
Pressure Group community residents
(Union-related
groups) Continuity of site operation
Economic
1. Economic crisis can result to belt
Domestic tightening impacting training budget; Moderate 24+ months Medium
Economy training pricing cost; talent going
overseas

Economic conditions/ inflation that

may affect employees’ financial
needs/ take-home pay
(Hospitalization of dependents, Major 12-24 High
education, basic needs on food, months
shelter, and clothing) which may lead
to labor unrest/ mass actions

Domestic economic situation that

may lead to employees’ decision to Major High
go abroad and seek better paying job 12-24
to sustain family. months
Economic
2. Global Economic crisis can result to belt
Economy tightening impacting training budget; Moderate 24+ months Medium
training pricing cost; talent going
overseas
3. Taxation Required compliance; Impacts
Issues employees on their net take home Major 0-6 months Low
pay
4. Exchange Impact on cost of foreign related
Rate training and externally provided Low 24+ months Low
(foreign) development solutions
5. Inflation Impacts every employee in terms of
net take home pay or cost of money Major 0-6 months Low

May lead to labor unrest or longer

Collective Bargaining Agreement Modera 12-24 Medi
(CBA) negotiation that may cause te months um
disruptions in operations
 Social
1. Media That company is not taking care of
Views its employees/ no harmony between Moderate 17-24 months Medium
labor and management.
2. Company/ Company branding is important in
Technology attracting great talents Major 24+ months Medium
Image
That company is powerful and of
national interest, therefore, very Modera 12-24 High
attractive to militant groups te months
3. Education/ Caliber of new hires and workforce Moderate 24+ months Medium
University
Offerings
4. Generation of Need for appropriate and effective 24+ months Low
Learning methodologies for Minor
Learners
changing generation of learners
5. War for talent Caliber of workforce Moderate 24+ months Medium
Technological

1. Technology Opportunity to make training technology supported Moderate 24+ months Medium
Development and driven (e.g., learning management system, virtual
learning/ university) addressing relevance,
accessibility, operational efficiency, training coverage
and generation learner issues

2. Competing Employees transferring to business operations Moderate 12-24 months High

technology competitors
development

3. Maturity of Need to upgrade and introduce new methods and Moderate 12-24 months High
Technology systems or technology that may affect labor
requirements
 4. Waste Unavailability of good manufacturing practices/ 5s
Removal systems and resources to address waste disposal Moderate 12-24 months Medium
Recycling requirements (e.g, chemicals, utilities, and materials)
Environmental

1. Environmental Community takes advantage of environmental Major 12-24 months Medium

Issues protection issues for personal gain/ advantage

Poor understanding of residents on site operations

that may affect safety of employees.

2. Environmental Required compliance to satisfy any insecurity or Major 12-24 months Low
Regulations safety issues of employees and community residents.

3. Ecological Community or employees demand for more Minor 12-24 months Low
Corporate Social Responsibility (CSR) activities to
enhance relationship in the area we operate.
 Legal

1. Current and Impact on labor relations Major 24+ months High

Future
Legislation Labor related changes and implementing rules
revisions that may lead to Union activities/ concerns.

2. Regulatory Compliance with training standards and certifications Minor 24+ months Low
Body and
Processes Labor cases (discipline, work standard compliance,
corporate rules and regulations and procedures
compliance) involving employees that may lead to
third party resolutions/ interventions.