The offshore staffing industry has long operated on a simple premise: connect companies with lower-cost labor overseas, make the placement, and move on. Nikita Mercado thinks that model is broken.
As founder of Konektao, a US-based company with operations in the Philippines, Mercado is building something different—a full-service employer of record platform that treats offshore hiring less like a transaction and more like building an actual team. The approach comes from her experience on both sides of the equation: as a Filipina American entrepreneur based in California, she’s seen firsthand where traditional outsourcing breaks down.
“A lot of companies struggle with cultural misalignment and communication barriers,” Nikita Mercado explains. “Filipino talent is incredibly skilled, but when offshore employees feel disconnected from the company, retention suffers. We wanted to change that.”
Beyond Placement
Konektao operates as a complete Employer of Record in the Philippines, managing everything from DOLE-compliant employment contracts to payroll processing, statutory contributions like SSS and PhilHealth, and tax compliance. But the company’s differentiator is what happens after the hire.
Where most staffing agencies stop at placement, Konektao provides ongoing workforce management and team integration support. The goal is to make sure offshore employees don’t just start strong—they stay aligned, productive, and engaged long-term. For startups and SMBs trying to scale without the overhead of US hiring costs, this continuity matters.
Nikita Mercado’s background scaling teams from early-stage startups to organizations with thousands of employees informs the company’s structure. She knows what breaks when companies grow fast, and she’s built systems to prevent it.
A People-First Model
One detail sets Konektao apart in an industry not known for prioritizing worker welfare: every employee hired through the platform receives comprehensive HMO coverage, including health, dental, and vision benefits. That coverage extends to immediate family members.
It’s an unusual move for an offshore staffing and BPO partner, but Mercado sees it as essential. “Strong teams are built when employees feel supported both professionally and personally,” she says. In an industry where turnover is a persistent problem, benefits that extend beyond the individual employee can be a retention lever.
What Comes Next
Nikita Mercado’s vision for Konektao extends beyond the Philippines. The company plans to expand into other high-growth talent markets, evolving into a multi-country Employer of Record platform. The roadmap includes investing in technology to streamline hiring, onboarding, and compliance, making it easier for companies to manage distributed teams across regions.
But the core mission remains consistent: creating quality opportunities for Filipino professionals while helping US companies build teams that actually work. The name itself reflects that intent—”Konekta” means connect, and “tao” means people in Filipino.
As more companies explore distributed teams, the question isn’t just where to hire—it’s how to do it in a way that lasts. Mercado’s answer is to treat offshore staffing services not as a shortcut, but as a long-term investment in people. Whether that model scales remains to be seen, but it’s a needed counterpoint in an industry that has often prioritized speed over sustainability.
