Congratulations on your expansion to Indonesia! Growing your company across borders is an exciting time for you and your business, but there’s still plenty to learn. You need to hire employees and ensure you meet all of Indonesia’s employment compliance laws, on top of running a new location in a new country. That’s why Globalization Partners offers Indonesia hiring outsourcing. As a global PEO, we will hire talented employees in Indonesia to fill your open positions, as well as take on matters of compliance.
How to Hire Indonesian Employees
Understanding Indonesian culture is essential to hiring and negotiating with employees. The country focuses on the group instead of the individual, so businesses are often hierarchical, and employees care about “face.” Indirect communication is normal, and employees that tell you “yes” may often mean no.
You should also prepare for long negotiations over an employment contract, as deliberations are a sign of respect. Indonesians view time as a fluid concept and believe everything will happen in its own time and space, so punctuality is not a concern. Instead of rushing through business transactions, take the time to build relationships.
Indonesia Employment Compliance Laws
You must follow Indonesia employment compliance laws starting with an employment contract. You can use a fixed-term employment agreement as long as it’s written in the official language, Bahasa Indonesia. The contract cannot exceed two years, but you are allowed to extend it for up to one year.
Employment contracts can also last for an unspecified period of time. When you hire an employee in Indonesia under this contract, you should include information regarding compensation, benefits, termination requirements, and more. Make sure you state all compensation amounts in Indonesia rupiah instead of foreign currency.
How Do You Onboard Employees in This Country?
Once you understand how to hire employees in Indonesia, you need to onboard them. Indonesia’s laws do not mandate one way to onboard employees, so you can choose the option that is best for your company. Since negotiations can be complex, we recommend reviewing the agreed upon employment contract together during the employee’s first day or week.
You can also choose to onboard multiple employees at one time. This approach will streamline the process for you and help new hires bond with each other over their employment with your company.
The Benefit of Indonesia Hiring Outsourcing Services
If you opt for Indonesia hiring outsourcing services with Globalization Partners, you can hire employees and start working faster. You will not have to establish a subsidiary to start working in the country as we use our existing subsidiary to run your business. Our Employer of Record platform means we will hire employees through a compliant process and assign them to work for you. You only need to worry about building up a new location.
Globalization Partners Can Help You Expand
Globalization Partners understands all of Indonesia’s employment compliance laws, and we’ll help you hire top talent quickly and compliantly. Contact us today to learn more.