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India’s continued rise in the tech world is driven, in no small part, by its dynamic workforce. It’s no surprise that several international tech giants like Google, Apple, Amazon, Intel, and IBM have established themselves in the country – and this trend is only expected to grow. In fact, in FY 2021-2022, India received its highest annual foreign direct investment (FDI) inflow of USD 83.57 billion.
Given that many top cities around the world continue to experience talent availability challenges, India offers a promising opportunity for tech companies that need skilled professionals to drive their growth in such a fast-paced industry.
However, accessing talent in India presents its own unique set of compliance obstacles and cultural considerations that may delay or ultimately hinder the hiring plans of international employers that approach the market without the right preparation and support.
Here are a few of the most common mistakes companies may experience without a nuanced understanding of India’s talent market:
MISTAKE #1: Company X was not familiar with local salary packages.
Weeks after starting their hiring campaign in India, Company X was puzzled as to why all candidates stopped moving forward with their application, especially since most of them reached the job offer stage. The problem was that while their base salary offering was competitive, the entire package fell short compared to competitors. Candidates who are parents, in particular, were expecting Children Education and Children Hostel allowances.
G-P TIP: Understanding full compensation nuances and requirements in the country you’re hiring in is crucial. Aside from the base salary, employees in India expect additions to their overall pay, including House Rent Allowance (HRA), Leave Travel Allowance of Concession (LTA/LTC), and other allowances and bonuses. In fact, according to the country’s regulations, up to half of the total salary package can be made up of additions to the base pay.
These allowances and bonuses are crucial for employees to maximize their take-home pay through tax exemptions. Candidates place a premium on comprehensive packages that cater to their needs.
MISTAKE #2: Company Y did not have a streamlined hiring process.
Company Y began recruitment in Mumbai after finding out this was where their competitors had been hiring talent. While they entered the market confident that their benefits packages were more compelling than similar companies, their hiring campaign was progressing significantly more slowly than expected. After interviewing an applicant, Company Y found out that the length of their hiring process, combined with uncertainty due to lack of communication, made the candidate decide to take a position elsewhere.
G-P TIP: An efficient hiring process is, in itself, a competitive edge. The demand for tech professionals in India is high, especially if employers target the more prominent markets. Aside from knowing which locations are ideal for finding and hiring the right people, employers should also establish a streamlined application process.
It’s not uncommon for jobseekers in India, especially those in tech, to receive several job offers from competing organizations simultaneously. A quick, efficient, and well-communicated process can be the final push candidates need when considering which offer to accept.
Companies with high affinity to growth also employ global employment technologies to help create an efficient application process. Implementing automated steps and procedures and leveraging the support of in-region HR experts for quick and compliant onboarding can help set your company apart from the competition.
MISTAKE #3: Company Z did not provide the appropriate days off.
India was the first frontier for Company Z’s international expansion six months ago. So far, they had enjoyed the skills and work ethic their India-based employees had brought to the table. The problem began when disputes about local holidays caused disengagement within the workforce. Company Z operated in three different states. Each of the states has its own set of holidays that the company had not accounted for in its paid time-off benefits offering. Soon after, the company saw a rise in attrition.
G-P TIP: Local customs can influence employee benefits and privileges. In addition to the minimum 15 required vacation days and 12 sick days per year, employees in India also receive 10 paid public holidays based on the customs of particular locales. Employers often offer more time off to support employee wellbeing and gain a competitive advantage when attracting talent.
The paid leave credits and days off can be a challenge to navigate for international companies that may not have similar systems at home. Familiarity with varying public holidays requires local know-how. The Sindhi New Year, for example, is observed in Delhi, but not in Bengaluru. The Valmiki Jayanti is observed in both locations, but not in Mumbai.
Increase speed-to-market in India with the right partner.
There are many other factors to consider and regulations to understand when accessing India’s tech talent market. The good news is all these missteps can be avoided with support from a trusted partner.
With our extensive experience in global expansion, G-P understands what companies need to navigate the tech talent market in India successfully. G-P Meridian Suite™, our #1 suite of global employment products, helps companies like yours find, hire, and manage talent in 180+ countries. Our market-leading platform is also backed by the largest team of in-region HR and legal experts who have over a decade of valuable firsthand experience making sure companies are meeting the expectations of candidates and employees.
Find out more about how to hire tech professionals in India with our comprehensive eBook, Tech Talent Access: India.