HIRING EMPLOYEES IN INDIA: A GUIDE FOR FOREIGN COMPANIES
In over 95% of staff employed by abroad firms operating in India are hired locally. India has huge talent pool with basic skills to highly skilled individuals to choose from.
However, the size of India and its workforce, combined with cultural differences and attitudes to employment, can make it difficult to find the right staff for your business. In particular, with the growing number of international companies competing for talent it can be challenging to find experienced senior executives.
If you are aiming to fill positions that require specific experience or particular skills, recruitment firms can be extremely useful and are often necessary to make sure you find the right staff.
To help companies entering the Indian market manage their recruitment effectively, the Remunance’s ‘indcubate’ provide recruitment support where we manage the process and the recruitment agencies from start to finish or we adopt the recruitment process of yours and help companies get their first team member in India.
- RECRUITMENT/STAFFING SCENARIO IN INDIA –
Foreign companies need to be sensitive to India’s different cultural and religious norms that affect HR practices. You can find out more about Indian business culture here.
In comparison to the other countries, relationships between managers and staff in India are more formal and hierarchical.
It is not unusual for candidates to address interviewers as ‘Sir’ or ‘Madam’.
English is the main language of business, and job interviews would typically be conducting in English.
Indian employees value secure and long lasting jobs. As a result contract jobs are often seen as a last resort and “freelancing” is not as widespread as in rest of the world, or seen as a particularly desirable state of employment.
Job titles and designations are very important. For much of the population their employment forms the basis of their social status, eligibility for a mortgage, and even marriage prospects.
Salary packages in India are known as CTC (cost to company). This includes all elements of pay. Your tax accountant should design a corporate structure as a template. Individuals will have differing tax requirements and different staff numbers result in differing requirements such as Provident Fund.
- INDIA’S ONLINE JOB PORTALS –
If you are looking for junior to mid-level staff India’s online job sites are an effective way to find recruits. These portals offer a wide choice, however be prepared to receive high volume of responses. To save time and avoid unwanted applications, be very specific about the job description and the qualifications you’re looking for.
- SOCIAL MEDIA BASED RECRUITMENT –
Recruitment through social media in India is a growing trend and is expected to continue to grow more for recruitment. It is an effective way to reach a significant number of people quickly and easily but it may not be trustworthy as well as might not suit for all types of jobs.
- PEO/EOR IN INDIA –
PEO or EOR becomes the legal employer of the Indian staff or the transferred expats of the foreign entity’s team in India.
Professional Employer Organization or Employer of Record also takes care of all compliances of the team, payroll processes, tax computations, employee benefits & Govt. Regulations etc. This gives the foreign company an advantage to start operations quickly, focus on core business activities and get mentored to explore the Indian market.
As business grows across different boarders, employment laws and regulations get more complex especially in a country like India. Local PEO or EOR has the right network and access to the talent pool that makes hiring resources much easier for the foreign company.
With this model, a foreign entity can build their team in India and work with them to support their existing business or flourish in the Indian market.
- WORK HOURS AND OVERTIME PAY IN INDIA –
For most industries in India, employees should not work more than 9 hours per day, and not more than 48 hours per week in total.
The Minimum Wages Act, 1948 states that if an employee has fixed minimum wages for a particular period of time, the employee should receive overtime pay for work done beyond the specified period. Like the regulations for work hours, regulations for overtime pay may also vary depending on the industry. Remunance services have helped many global companies recruit their team in India & start business operations with complete HR Admin, office infrastructure support all over India.