How US companies use EORs to build teams in India
India is a sought-after destination for talent acquisition and ranks among the top markets worldwide for hiring skilled professionals across IT, engineering, design, and back-office operations.
As a business owner, you should know that India has the largest number of professionals and a huge digital economy. However, hiring employees from India can be a complicated process. Establishing a local entity will require numerous registrations, compliance with laws and regulations, and multiple months of administrative tasks. This is why an EOR for building teams in India is becoming increasingly popular among US companies planning to hire employees and handle them efficiently without establishing an office or entity.
An employer of record in India will act as the legal employer on behalf of your business. It will handle payroll, taxes, compliance, and outsourcing of statutory benefits in accordance with Indian employment laws. This model will provide employers with the flexibility to create and operate teams quickly, at an affordable rate, and in compliance.
Primary challenges of hiring talent in India
India is known for having the largest pools in the world. However, that doesn’t mean that the hiring process would be easy and quick. The primary challenges that come up every now and then include the following:
1. Prolonged hiring cycles
Recruiters often hire talent for job openings to avoid operational delays and financial costs associated with vacancies. Additionally, certain positions take longer to fill because it’s difficult to find the right fit. This can be an overwhelming experience.
The primary reason for this is usually the demand-supply gap of qualified candidates. Therefore, it is challenging to hire teams to identify and secure the right candidate. This makes it challenging for hiring teams to find and secure the right candidates before they are hired elsewhere. This is one of the main hiring challenges that recruiters face.
2. Verifying the candidate’s integrity
There are millions of skilled talents in India. This can result in intense competition. With increased pressure to stand out, candidates may take shortcuts to get ahead. If you are hiring in India, you should be aware that faking experience is quite common. As a company, you should take measures to prevent any negative outcomes.
3. Compliance requirements
India has varying central and state-level labor regulations that govern the employment contracts, benefits, wages, termination procedures, and workplace policies. This can make achieving full compliance complicated, especially if your company is not familiar with the legal framework.
4. Taxation and payroll complications
Handling payroll in India usually involves provident fund (PF), tax deductions (TDS), employee state insurance (ESI), professional tax, gratuity, and other statutory contributions. Errors from reporting or calculation can result in reputational risks and penalties.
6. Differences in HR management:
Understanding the local workplace expectations, notice periods, communication styles, and employment norms is quite important. Misalignment can result in employee dissatisfaction and reduced productivity.
How an EOR simplifies global hiring in India
Hiring in India will provide access to a large and skilled pool of talent. However, navigating local labor laws, payroll, and compliance requirements can get challenging for your business. An Employer of Record service will streamline this process by handling legal employment, compliance, and payroll, allowing businesses to hire quickly and operate in India without establishing a local entity. An EOR for global teams in India will simplify the hiring process in the following ways:
1. Simplifies the global expansion process
Usually, expanding into a new country will require you to establish a legal entity, establish offices, and navigate complicated regulatory frameworks. If your business wants to hire remote employees, these can be unnecessary and expensive. By partnering with an EOR service in India, you can hire talent quickly without having to establish an entity.
2. Compliance with the Indian labor laws
India is known for its complicated legal framework. It includes regulations on minimum wages, employee termination, benefits, and tax deductions. EOR for building teams in India will ensure your business remains compliant, helping you avoid legal risks and penalties.
3. Maintains a streamlined process for payroll and taxation
Handling payroll across borders can get challenging. This is especially true when dealing with various currencies, statutory filings, and tax regimes. Global EOR solutions will automate this process, ensuring employees are paid on time and that taxes and deductions are handled accurately.
4. Easier access to skilled talent
India is known to be one of the fastest-growing talent hubs in the world. This is especially true for IT, finance, digital services, and creative fields. By using the EOR service in India, you can access the pool of skilled professionals without worrying about the complexities of HR.
5. Affordable hiring model
Remote hiring through an EOR for building teams in India will help your business optimize costs. You can save on office-related expenses, entity setup fees, and infrastructure. This makes the EOR the perfect choice for your business.
Related read: How EOR helps companies to hire employees in India
Why is Global Squirrels the perfect EOR partner?
Hiring and vetting remote talent is usually a major challenge for businesses partnering with an EOR provider in India. While they usually handle the payroll and compliance, you will still be responsible for sourcing and recruiting the candidates.
Global Squirrels will solve this challenge by combining both staffing and EOR/payrolling. Our platform will help your business build teams in India by sourcing candidates based on your job requirements. Within 2-5 business days, you will receive curated profiles of top talent for reviewing. Once you select and hire the right candidate, Global Squirrels will manage the payroll, HR, administration, onboarding, and compliance. This will enable the company to build remote teams efficiently without establishing a local entity in India.
Global Squirrels will ensure that every hire complies with the labor laws applicable in India. Therefore, there would be no compliance-related issues, and thus the risk of fines, legal claims, and wrongful legal disputes would be reduced.
Every hiring in India will require multiple documents in certain formats. Global Squirrels will manage employment-related documents, final settlement documents, government filings, and compliance certifications.
Processing the final payroll is an important part of hiring employees from India. Global Squirrels will ensure precise calculations for final salary, PTO, bonuses, and overtime.
We offer three plans suited to a company’s specific needs. Our Orange plan covers both recruitment and EOR/payrolling. The Purple plan will handle the EOR for a candidate you have already sourced. And, our Blue plan covers office space, recruitment, and EOR. Unlike other EORs that charge high monthly fees, Global Squirrels offers an affordable pricing model. To hire a talent from India through our platform, you only need to pay the payroll cost and a flat fee per hire. Our platform has enabled several companies in the USA to secure top talent at just 1/5 of what they previously paid.
Request a demo to see how it works.
Final words
Expanding operations into India can offer your business access to a large pool of talent and affordable hiring opportunities. However, navigating the local employment laws, compliance requirements, and payroll regulations can be challenging without any local presence. An Employer of Record will simplify this process by enabling you to hire and manage employees in India without establishing a legal entity. Build teams in India with an EOR to stay compliant with the local regulations.
