The Indian job market is extremely dynamic and unpredictable. Hiring remote engineers from India is often a challenging task. While there are plenty of job offers as such, there is certainly a huge chasm in the Indian talent market. To put it into perspective, there are more jobs than talented people in the market. As such, it is difficult to find the right candidates who have the necessary skills and are competent enough to provide value as an employee.
While this is a general consensus, there is hope. With the global COVID-19 pandemic displacing numerous working professionals all across the country, rapid technological development, and the rise of digital marketing as a mainstream market, things may be looking up. In fact, the hiring trends in India have displayed an upward growth trajectory with a record 22% increase, as per a report by Naukri.com, a leading job board in India.
So while there is significant demand and several opportunities in the market, there is a need to bridge the gap between the requirements of the company and the skills of the job seeker. As such, there have been notable changes in the job market in 2022. These have been highlighted below:
✓ Numerous organizations are eradicating their mid-level management position and replacing them with a new-level management position that results in better management.
✓ Business organizations are laying emphasis on the development of skills in employees.
✓ Focus on employees with industry-specific qualifications and experience.
Why is full-time and long-term employment so sought-after?
With all things said and done, the preferable means to employ remote engineers from India is to go with full-time and long-term employment.
Several misconceptions and second thoughts are associated with other forms of employment such as freelancing, contract, or part-time. The primary objective is to get stability, something that a full-time and long-term position usually promises to its employees.
How to hire remote engineers in India?
Partnering with freelance contractors or hiring employees in India directly gives you a wide array of talent. India is well-established for its engineers and IT professionals, and one can benefit tremendously by offering full-time and long-term offers to them.
Once you have made the decision to employ a remote engineer, the usual procedure is to create a job description, lay out the salary figures, interview them for the job, and ultimately make an offer. Let's shed some light on these.
It is worth noting that one of the primary reasons that US small businesses hire remote engineers from India is the reduced overhead costs. This is because the costs of living and basic expenditures are significantly lower in India than in the United States, and the average salary in India is generally between $400–$500 per month. In fact, you will find reduced overhead costs even in positions that require a certain degree of specialization. That said, many employees tend to jump into other jobs if they are not satisfied. As such, it is important to provide remuneration that corresponds to their skills and experience.
Highlight the details of the job description, salary, and benefits
When drafting a job description, ensure utmost clarity on all important details and include the skills and requirements necessary for the job. Regardless of whether you are hiring an employee or working with an independent contractor, this is extremely important.
Do expect there to salary negotiations. Many companies offer extra benefits that Indian employees widely regard. This typically includes health insurance, paid holidays, etc.
Ensure Payroll & Employment Law Compliance
While there is no designated payroll schedule in effect, most Indian workers usually get paid on a monthly basis. In case you are partnering with an independent contractor, you should have ideally completed the IRS Form W-8BEN or W-8BEN-E from them in order to ensure that there are no payment issues and appropriate taxes are being withheld. The most important labor laws and taxes are as per the following:
Minimum wages
The nature of the minimum wage for an Indian employee is dynamic. However, it's currently at INR 178 or $2.24 per day.
Overtime
Indian employees are entitled to receive 2x their base pay if they work more than 48 hours per week.
Paid offs
Employees in India must get at least 15 paid days in accordance with 240 days of employment. Though this is a bare minimum, most companies provide more offs in order to get the best talent.
Sick Leave
Any employee who has been working for three months or more in a particular company should get 15 sick leaves on an annual basis.
Parental Leave
Maternal leave: 26 weeks of 100% paid maternity leave for their first two children and 12 weeks for any additional children.
Paternal leave: No leave required.
Post the job advertisement on a job board
Post an ad for your job offer that highlights all the particulars of the position and the relevant responsibilities of the same. You can also specify the work hours in IST to narrow down your candidature. Posting on India's leading job boards is a great idea. Some of the most common job boards in India are:
- Naukri
- Indeed
- Monster
- FreshersLIVE
Post an ad for your job offer that highlights all the particulars of the position and the relevant responsibilities of the same. You can use an AI ad generator to create ads that drive conversions!
Interview the shortlisted candidates
To ensure that the interviews are fruitful and you get the right candidate, you should list essential qualities that you expect the ideal candidate to have. The best talent should be in sync with your requirements.
Set up a video interview with your list of candidates in a predetermined time ideal for both time zones.
Rise of Gig Economy
The gig economy is characterized by short-term contracts and freelancing. As such, a gig employee is not under the authority of any organization and can take on various projects as per their convenience, expertise, and time.
The gig economy reflects the typical Indian dream of doing well in life through a dignified and productive job. In fact, a good number of companies offer gig employees attractive benefits that are competitive with those working full-time. So naturally, there has been an increased preference for gig jobs in the last few years, and if you are looking to employ full-time, there should be fair remuneration and benefits as a part of the offer.
The EOR Model and its Benefits for International Hiring
To get the best pool of talent from India, one can work with an Employer of Record (EOR), also known as a professional employment organization (PEO). It is essentially a third-party organization that takes the responsibility of paying employees.
To put it into perspective, an EOR will have all you need to start your hiring process in India. In addition, EORs are well-acquainted with all Indian employment laws and can correctly structure salary figures and layout benefits. Not to mention, by giving these responsibilities to the EOR, you can steer clear of the risk of non-compliance.
A good number of international companies create a subsidiary in India and choose either a private or public limited liability company structure. To establish one’s subsidiary and start hiring someone in India, one must have obtained the following:
Top 5 benefits of using EOR services for hiring from India
EOR companies bridge the talent gap and provide the following benefits to help businesses achieve new heights:
Setting up legal Payroll Management
Hiring remote engineers may invite certain legal factors. For instance, taxation rates differ to a great extent, and with the laws experiencing an annual variation, it can be quite difficult to be aware of all the developments and nuances of hiring people in India.
An EOR organization would always keep itself abreast of all the current rules and regulations to ensure compliance and adherence to all legal factors. M
Cost-effectiveness
With the assistance of EOR organizations, many companies will not have to set up any brick-and-mortar offices to address their operational requirements. This leads to significant savings.
Saves time
It goes without saying that dealing with employee matters takes time, especially when it's remote. With EOR in tow, you can allocate your time to the growth of your business and other operations. The EOR will deal with any pressing employee matters and solve them in an easy and hassle-free manner.
Onboarding Employees
Finding the right talent is only half the work done. It is equally important to have them understand all the relevant details of daily work and the values that you or your company stand for. This is where EOR fits into the picture. With a core understanding of your company and its needs, EOR will help make the onboarding process a smooth and hassle-free affair.
Why freelance platforms are gaining traction?
The gig economy has always been active and very much present in the Indian market. There are various industries that started out operating on a per project basis and then moved on to take full-time roles. It is estimated that there are 15 million freelancers in India, and these numbers keep rising. With the advent of freelance platforms, being able to find freelancing gigs has become easier. The US hires the most number of freelancers in the world, and with India being a hot market of talent, it is becoming common for many US companies to hire freelancers from India based on their project requirements.
IT is a sector that sees a flow of freelancers from India taking up. Freelancing platforms eventually become a trusted source to find gigs from as these platforms are curated, keeping the gig economy and its potential in mind. With remote working becoming increasingly popular and preferred, these platforms have evolved to take these preferences into consideration when onboarding employers who are looking to hire. These platforms offer trust in bidding and usually do not charge a high commission on every freelance project an individual ends up getting from the platform, making it at times less favorable for a person. Freelancing through technology is still at a mid-development stage in India, and many are opting for it, considering the range of flexibility and payment options it offers.
Some Major Ways to Scout Engineering Talent
Engineering in India is a rapidly growing industry, especially in the IT sector. While many Indians prefer working in an organization offering growth, they are also on the lookout for opportunities that helps them put newly learned solutions into practice.
In order to find the best engineering talents in India, it is crucial to curate an opportunity that offers growth and stability and ensures the hired engineers are able to put their learnings into real-time problem-solving. Another major attraction that scots engineers to work in an international organization is the recognition they get for their work and the regard for the changes they are able to bring.
According to an article, Indian engineering talent has been a great thrust for the development that the US sees today. Additionally, with exposure to having worked in multiple start-ups (and unicorns), the perspective and the skillset Indian engineers bring onboard really opens up opportunities to combat even the trickiest of problems.
The Job Platforms VS Consulting Agencies
While job platforms are becoming increasingly popular in India to help individuals find the best job for them, consulting agencies have also helped ensure candidates find opportunities that are best for them. While job platforms require an individual to do the hard work of filling in relevant details highlighting why they are worth hiring, consulting agencies maintain a database of candidates that can be hired for any suitable role the organization has an opening for.
They are constantly in touch with a wide network of companies looking to expand their workforce and are constantly assisting them in hiring the right people. Additionally, job platforms do not entirely offer safety against fraudsters who demand money in exchange for a job offer. This is where consulting agencies are widely referred to since they often perform a background check on enrolling organizations and candidates for a transparent hiring process.
Finding the right remote engineers for full-time roles in India
The demand and capabilities of Indian engineers are remarkable. If you are looking for professionals who can help your business reach its milestone in record time, it is time to start hiring from India! Wise Monk helps businesses find their ideal candidate for full-time and long-term roles. Growth is inevitable and with WiseMonk, speed up your process of hiring talent.
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