Madagascar Recruiting and HiringReading Time: 4 minutes
Your employees are an integral part of your company. They help you secure new clients, offer different products, and build your company. It’s important to learn how to hire Madagascar employees and stay compliant while finding top talent that will give you a competitive edge. However, you have to worry about meeting Madagascar’s employment compliance laws while building a new company location and running your parent company.
Globalization Partners is a global PEO that will help you expand without the hassle of compliance. We’ll act as the Employer of Record to handle employment compliance on your behalf and hire employees who work for you. When you choose us, you’ll only have to focus on running your company — not worrying about the risk of recruiting and hiring.
Recruiting in Madagascar
Finding the right candidates when you’re handling Madagascar recruiting is only part of the equation — you then need to know how to communicate per the country’s cultural norms. Understanding business culture and etiquette will give you a leg up over the competition and impress all the prospective candidates you meet. If you’re handling the staffing and recruiting processes for your Madagascar company, remember the following tips.
1. Use a Formal Greeting
Most meetings in the country tend to be formal, and you’ll want to greet your associates with a handshake and their title. Loosely gripping someone’s right forearm with your left hand while shaking hands is a sign of respect. It’s also important to pass and receive documents or items with two hands, as doing so is another sign of respect. Keep in mind that different regions of the country can have different greetings — the above is more common in the Merina or Northern Betsileo regions.
2. Wear Lightweight Clothing
The warmer climate means most businesspeople wear lightweight suits. Men might wear pants or slacks with a long- or short-sleeve collared shirt. Women will often wear long skirts or pants and a blouse. However, they typically avoid wearing overly expensive accessories and dresses or skirts above the knee. Since the country is a more conservative society, we recommend wearing clothes that aren’t too revealing or casual when meeting with potential candidates.
3. Remember That Views on Time Vary Based on Region
Madagascar does not have one set view on time. For example, people in the capital of Antananarivo use watches and clocks to keep track of time and are almost always punctual. Outside of the capital, people operate on Malagasy time, which means going by the sun and hardly ever arriving on time. If you want to have a meeting in the more rural parts of the country, don’t expect punctuality. However, you should ensure that you’re prompt for interviews and meetings with candidates.
The Recruitment Process in Madagascar
If you plan on staffing your company with expats, you’ll need to understand the additional regulations that apply to them. For example, expats can make up only 30% of your workforce. For you to hire them, they must:
- Be the appropriate age
- Have special technical or scientific qualifications
- Have physical and mental abilities not found elsewhere
- Not have a criminal record
When you’re hiring expats, you can only employ them for a set period. The government expects nonresident workers to pass their knowledge and technical skills to Angolan employees so that residents can have the advantage when expats leave. The overall process is meant to push the country toward an “Angolanization” of human resources.
Labor Laws for Recruiting
Staffing and recruiting in Madagascar require an understanding of the different labor laws that can affect who you hire and what you offer. For example, the General Labor Law says you must set the same criteria and standards when determining salary. You’ll also need to give employees an equal opportunity for training and career progression. For instance, a woman would need to have equal rights as a man regarding salary and progression at work.
The country’s constitution and labor laws also prohibit all forms of discrimination based on:
- Political party affiliation
- Philosophical beliefs
- Education level
- Trade union membership
If you fail to comply with these laws, such as refusing someone’s employment or punishing or firing workers for a discriminatory reason, you could be punished with up to two years in prison or a fine of up to 240 days.
How to Hire Employees in Madagascar
You must hire all Madagascar employees using a written employment contract in the local language. The contract should include compensation, benefits, termination requirements, working hours, and similar factors. If your offer letter or employment contract includes salary or compensation amounts, they should be in Malagasy ariary instead of another currency. After your employee signs the contract, you need to give them a copy, then keep another for your records.
Madagascar allows fixed-term contracts of a minimum duration of six months, but no more than two years. These contracts do not enter the normal activities of the establishment and should relate to specific work that will get done by the end of the contract. If you renew the contract twice, it will transfer automatically to an open-ended employment contract.
Madagascar’s Employment Compliance Laws
Learning how to hire Madagascar employees isn’t the end of your compliance obligations. You have to ensure employees are meeting the terms of their employment contract, including working hours. The workweek in Madagascar is typically 40 hours, with five eight-hour days. If your employees work eight hours of overtime, they should get 30% their normal rate. Any additional overtime should get paid at 50% an employee’s normal rate.
Best Ways to Onboard Employees
You’re free to onboard employees using a process that works best for your business. If you’re not sure where to start, we recommend reviewing the Madagascar employment compliance laws outlined in an employment contract during your new hire’s first day. You should also provide job training and opportunities to build a positive team atmosphere among all new employees.
Benefits of Madagascar Hiring Outsourcing
Companies cannot hire employees in Madagascar until they incorporate in the country. However, it can take a few months to set up a subsidiary, leading the employees you want to hire to look for new positions. Globalization Partners can help you get the employees you need through Madagascar hiring outsourcing. We can onboard your preferred candidates using our existing subsidiary and even source new talent for you using our recruitment services. You won’t have to incorporate, and you’ll have peace of mind knowing that Globalization Partners is building a team you can trust.
Contact Globalization Partners to Learn More
If you’re ready to expand to Madagascar, we can help. Contact us today to learn more about Madagascar hiring outsourcing.