Hiring in India is different than hiring employees in any other country. Companies are hierarchical, and negotiations are known to be slow-moving. In addition to following the country’s cultural norms during the process of staffing and recruiting, you’ll also have to meet every India employment compliance law while getting your new branch off the ground. Luckily, Globalization Partners can help. We’ll hire employees on your behalf so that you can get started sooner, and we can help you through the setup process by acting as your subsidiary.
Recruiting in India
The pool of candidates in India is large, but you’ll still need to work to attract top talent to your company. Using the right recruitment channels can make all of the difference when it comes to staffing in India.
In recent years, internet job boards have been the largest source of hires for Indian companies. Many companies are increasingly turning to employee referral programs and social professional networks as well. However, these two methods may be difficult for your company to use if you don’t have an established presence in India. For this reason, working with a global PEO that has an Indian subsidiary can be helpful during the recruitment process.
Understanding Indian culture is essential when you are recruiting new team members. However, it’s equally important to understand the legal obligations your company faces and the best recruitment channels to use as you navigate the process of staffing in India.
Legal & Background Checks
As the employer, you are legally allowed to carry out background checks on prospective employees as long as you have their consent. You can request information regarding an applicant’s criminal record as well as their health. However, there are strict laws in place regarding the procedures for processing and storing medical records and information pertaining to the physical, psychological, and mental health conditions of applicants and employees.
Laws Against Discrimination in India
In India, there is no comprehensive law prohibiting discrimination in the workplace. However, there are a series of individual laws protecting specific categories of employees and applicants. Protected categories include:
- Individuals with HIV or AIDS.
- Persons with disabilities.
- Members of certain social classes.
How to Hire Employees in India
Negotiating with a new employee may take some time in India. Many Indians have an indirect communication style, and they often try to avoid talking about personal subjects.
A significant part of the negotiation process is the job title. A “good” job title can impact many parts of life in India, such as arranged marriages. Therefore, an employee could turn down a high-paying job to find one with a better-sounding title. However, you should not give too much of a job’s position away in its title. Employees with higher-level titles such as “director” or “manager” might ask for an assistant or refuse to do anything seen as “beneath” the job title.
You should also hire employees before you find a physical office space. Working from home is not common, and employees care about working close to home due to heavy traffic.
India Employment Laws
Employment laws in India are notably complex. One of the best things you can do is create a written employment contract that outlines each employee’s compensation, benefits, and termination information. Make sure the employment contract and offer letter state all salary amounts in Indian rupees as opposed to foreign currency.
Negotiating compensation packages is also hard to navigate. India has many pre-tax allowances for employees, so many workers try to maximize their take-home pay and allowances. Keep in mind during negotiations that a basic salary is usually around 40% of an employee’s total compensation packages.
Onboarding in India
Once you hire employees in India, you’ll need to onboard them. Many Indians care deeply about workplace culture, so you should familiarize your employees with your expectations beforehand.
Since negotiations can get complicated, reviewing the employment contract before your employee’s first day is essential. You should also get any necessary forms or information you need for payroll.
Benefits of Hiring Outsourcing in India
With so many India employment compliance laws to consider, outsourcing offers numerous benefits. Globalization Partners is a global PEO that offers India hiring outsourcing services. We can help you find top talent to build your subsidiary. We’ll even hire employees on your behalf, so you can start working faster.
With us, you won’t have to worry about noncompliance. We’ll take on all liability so that you don’t have to.
Work With Globalization Partners To Expand Globally
If you’re ready to open a subsidiary in India, now is the time to look at outsourcing. Contact us today for more information about our services.