Step by Step Procedure for Hiring Employees from India

Employers that are considering hiring employees from India need to know that they’re entering an unfamiliar regulatory environment. Although finding talent from around the world is a great strategy for having a diverse workforce and get high-quality employees, you must know how to carry out this process successfully and in compliance with the law.

Whether you’re planning hiring remote workers India or expats, you have to learn about the process. This way, you’re going to able to navigate through the hiring process with ease and confidence.

In this article, we’re going to provide valuable insight on hiring foreign workers in India. In addition, you’re going to understand why a third-party could be the perfect solution for your needs. Let’s observe:

  • Step by Step Procedure for Hiring Employees from India
  • What do you need to start hiring employees from India?
  • Which steps should you follow to hire from India?
  • How much does hiring an employee in India cost?
  • What aspects should you consider before hiring in India?
  • How can Connect Resources help you with hiring internationally?

Step by Step Procedure for Hiring Employees from India

India is a densely populated country, as you may know, and in this place you can find outstanding professionals for your business. In the last few years, the Indian market has been developing considerably, to the point where many international companies have seen this place as a great one for expanding or for hiring remote workers.

Since many employers have seen that they can get top talent employees from India, they’re wondering how to carry out the recruitment process.

If you’re considering hiring employees from India, you need to know about several aspects. First, you should know that you must follow the local employment law if you want to stay in compliance. In addition, you must learn about the step by step process so you can know what to expect.

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Why is India a great place to find employees?

India is the second-most populous country in the world, and its population works hard to become professionals. So, there are many recent graduates and experienced workers looking for an opportunity to find their dream job.

In this regard, there are several options for you. Whether you’re looking for a developer, an architect, or any other professional, you can find them in India.

However, you must know that you have to follow the law when it comes to hiring. But you don’t have to worry, because if you have assistance from a service provider you can achieve excellent results.

With the help from a third-party you don’t have to worry about tasks such as how to pay employees in India. This is because a team of specialists is readily available to help you at any time  , For More also Get to know more about the basics to expand internationally.

What do you need to start hiring employees from India?

When you’re thinking about hiring an Indian employee, you need to know how to do it in compliance.

You have two options for starting hiring employees from India, which are the following:

  • Establish your company
  • Work with an EOR (Employer of Record)

Let’s observe the advantages and disadvantages of both:

Establishing your company

To be able to hire employees from India you need to have a legal presence in the country as an employer.

Therefore, you must learn about the legal procedures for incorporating a company. Thus, you must gather the necessary documentation to do it. In addition, you must pay the costs of establishing an entity.

Here’s what you should do:

  • Choose a legal structure for your business
  • Establish a company branch or subsidiary
  • Handle the HR and hiring tasks internally
  • Learn about the regulations regarding your sector
  • Get approvals and documents from the authorities
  • Obtain additional permits

Although it may seem like the best thing to do, it’s actually a complex and challenging process. In addition, this option doesn’t work for you if you’re only interested in hiring a few employees.

Work with an EOR

If you don’t want to establish an entity, you can opt for working with an EOR. An Employer of Record is a service provider that can assist you hiring new employees in India.

Here we have the advantages of partnering with an EOR:

  • EORs have enough knowledge about India’s employment law
  • They can assist you to structure benefits package and competitive salaries
  • You don’t have to set up your own entity
  • You won’t have to handle or deal with complex HR tasks
  • EORs decrease the risk of non-compliance

With an EOR you’re able to hire just one employee, if this is what you want, and even hiring independent contractors in India. You have several options to choose from among the EOR’s wide range of services and also Learn more about how to carry out a successful strategic workforce planning.

Which steps should you follow to hire from India?

Whether you decide to establish your company or work with an EOR, you must know about the hiring process. Hiring employees from India doesn’t differ much from doing it in your home country.

Although the hiring practices are likely similar, there are some specific considerations you must have. Let’s observe the process and highlight the most important aspects regarding this country in terms of hiring.

Job ads publishing

The first step for hiring workers in India is writing and publishing job ads. Here’s what you should do:

Once you have your job ads, you must decide where to post them or how to advertise them. If you’re looking for remote workers India, it’s best to post them on online job boards or LinkedIn.

But, keep in mind that professionals in India are highly active on Internet looking for jobs. So, be sure to choose the job boards that your target prospects may look up to and Get assistance for your payroll with Connect Resources.

Receive applications and review them

Once you have posted your job ads, you’re probably going to receive tons of them. Whether you’re hiring independent contractors in India or remote workers, you need to review them all.

This process may take you a long time, so if you don’t want to handle this task, you can always contact a third party like Connect Resources to assist you with recruitment.

Interviews

Once you have selected the top candidates, you must interview them. If you don’t have any offices in India, you can conduct online interviews. Keep in mind the time zone differences, and set the interview for a time that’s comfortable for both.

But, if you have an office in India you can conduct the interviews in person. It’s advisable to have a translator just in case you need to explain something. However, look for candidates that are fluent in English or your language if you don’t want any misunderstandings and Discover how to boost your business with payroll outsourcing.

Job offers

After the interview process, you must extend the job offers to the selected candidates. This is the most difficult step because India’s employment laws are complex and ambiguous.

In this regard, it’s advisable to have a detailed employment contract. In it you have to set forth the expectations and every aspects regarding the employment relationship. This way, you ensure your employees understand what they’re entitled to.

Make sure to include crucial information such as compensation, benefits, allowances, etc. Also, include procedures for termination and ask the employee to review the contract.

Regarding how to pay employees in India, you should clarify with your employee the preferred way for doing this.

Onboarding

Once you have your new employees, it’s necessary for you to do the onboarding process. This is very importance because your new hire news to know all the details regarding your company’s culture and workplace policies. You could also provide training regarding the position.

How much does hiring an employee in India cost?

Another important aspect regarding hiring employees from India is the cost of said employees. However, this may be complicated to calculate because of the structure of compensation packages in India.

But, it’s possible to have an estimation about it. Keep in mind that you need to consider all the costs from the recruiting process.

So, the cost for your Indian employee may include the following:

  • Costs for registering your Indian entity
  • Team of legal experts and accountants to help you understand India’s employment law and tax law
  • HR team for recruitment and hiring
  • Costs for job advertisement
  • Relocation costs (if applicable)
  • Background check costs

In addition, you should consider costs if you’re planning to host or attend hiring events, as well as travel costs and Contact the leaders in Recruitment in Dubai.

How can outsourcing help you save costs?

If you choose to outsource your hiring process, the cost of hiring an employee in India may be lower. This is because outsourcing is a cost-effective solution.

In this regard, you just have to consider the fees you should pay to the EOR and See how you can plan your manpower to meet your expansion goals.

What aspects should you consider before hiring in India?

Knowing about the process for hiring employees from India it’s great, but this is not complete until you learn more about the general landscape of India’s workforce.

Before starting the recruitment process, there’s some key information that can help you:

Skills in India

You can find highly educated employees in India. However, there are some prominent industries. This means that you could benefit more if you opt for professionals from these sectors. You can find outstanding experts in the following areas:

  • IT Outsourcing
  • Retail
  • Financial services
  • Tourism
  • Healthcare
  • Industrial production
  • Technology

Job hopping

There’s a trend among Indian employees that may be detrimental for your business. It’s well-known that some Indian employees, particularly recently graduates, like to switch jobs after a short time.

This means that job hopping is pretty common, and if they find a better compensation or a better job environment in another country they won’t hesitate to switch.

Therefore, you must be very meticulous regarding the candidates you want to hire. Also you have to focus on your employee retention to retain top talent. Otherwise, this factor may increase the cost of hiring an employee in India.

Allowances

Compensation packages can be complex due to allowances. You should determine the right amount to include, as well as determine which ones are taxable and which ones are tax-exempt.

Taxes

India’s tax law is also complex for international employers. Given the coexistence of recent regulations regarding tax exemptions and lower tax rates with the previous laws, it could be difficult to understand which one to follow.

Benefits

Regarding the benefits, you must check which legislation applies to your industry or sector. This is because there’s not a list of statutory benefits that applies to all workers and Find out how you can attract high-quality passive candidates for your business.

How can Connect Resources help you with hiring internationally?

If you’re thinking about hiring employees from India and are looking for an EOR, here in Connect Resources we can help you. We can help you get employees quickly without having to invest a lot of effort. We know how to handle India’s complex employment laws and tax environment.

Our team of specialists can assist you hiring foreign workers in India, so you can get perfect employees. We’re a valuable solution for your global hiring requirements since we can handle all your HR needs.

Would you like to contact Connect Resources for Hiring and Recruitment Services? You can call at +971 433 166 88 or send an email to contact@connectresources.ae, and you’ll talk to one of their representatives that will gladly answer all of your questions

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