5 Tips for Tapping India’s Talent Pool

a female Indian employee discussing HR ideas with four colleagues

By Pushkar Bagmar, Director, Client Solutions and Recruitment

As global businesses increasingly seek skilled talent to fuel their growth, India emerges as a pivotal player. A recent article from the Economic Times predicts that India will fill the global demand-supply gap of skilled professionals for years to come. The subcontinent already accounts for 50-70% of technology and operations headcount for global corporations, according to data from EY.

With a diverse talent pool spread across the country, tapping into India’s workforce can be a game-changer for businesses worldwide. However, navigating the intricacies of talent sourcing in India requires an understanding of market nuances, careful consideration and strategic planning.

In this blog post, we provide insights and tips for companies looking to leverage India’s vibrant talent pool.

Understand the diversity of talent locations

India is a sub-continent with a vast diversity of talent spread across its length and breadth. 

Different regions specialize in various industries and skill sets, which can help companies fill specialized, in-demand roles. For example, tech talent is abundant in cities like Bangalore, Hyderabad and Pune. Automobile expertise tends to thrive in the National Capital Region (NCR) region, Mumbai, Pune and Chennai.

Understanding these regional nuances is crucial for identifying the right talent pool for your specific requirements.

Factor in compensation dynamics

When hiring in India, it’s essential to have a clear understanding of compensation structures and benchmarking.

While cost-to-company (CTC) is the standard terminology, its components can vary from company to company. To avoid misunderstandings, come to a clear agreement on an employee’s total compensation. This includes base pay, allowances, benefits and employer contributions to the Provident Fund.

It is also important to consider cultural expectations regarding salary raises during job switches, which are typically around 30%.

Consider cultural and linguistic factors

India is one of the most culturally and linguistically diverse countries in the world.

While English is the primary business language in India, each state has its unique language and cultural nuances. Familiarizing yourself with these cultural differences can help you choose the right candidate and foster effective communication and collaboration.

Moreover, understanding local customs and practices can contribute to building a harmonious work environment.

Mitigate risks of no shows

One of the significant challenges of hiring in India, particularly in IT, is the rising phenomenon of ‘no shows.’ Despite accepting job offers, candidates may fail to turn up on their first day of work.  

To mitigate this risk, establish clear communication channels and maintain regular follow-ups with the candidate. It is also essential that all terms and conditions are explicitly stated in the offer letter.

Building a positive employer brand and fostering strong candidate engagement can also help reduce the likelihood of no shows.

Evaluate proximity to clients and vendors

India is a vast country and travel can be difficult given its size and diverse geography. When selecting the right location for talent sourcing in India, consider proximity to clients and vendors.

If your operations involve serving local clients or sourcing from specific regions, choosing a location nearby is helpful. This can streamline communication, reduce logistical challenges and enhance operational efficiency.

Similarly, assess the international travel requirements of your talent. Opt for cities with better air connectivity if frequent travel is anticipated.

Employer of Record: your partner for hiring talent in India

India’s rich and diverse talent landscape presents a wealth of opportunities for international companies seeking to bolster their teams. To harness this potential effectively, many businesses are turning to Employer of Record (EOR) services.

Partnering with an EOR can ensure that your company remains compliant with India’s complex HR regulations and tax laws. From onboarding to administering benefits and managing payroll, the EOR can handle the employment process with meticulous attention to detail.

Beyond compliance, EOR services also play a crucial role in building a positive employer brand in India. Seamless onboarding experiences, competitive benefits packages and ongoing support for employees can help companies build their reputation.

Some EORs take it a step further and help source top talent in target markets across various industries and regions. Whether you’re looking for tech talent in Bangalore, marketing experts in Mumbai or finance professionals in Delhi, EORs with recruitment arms can help you tap into India’s vast talent pool to find the perfect fit for your team.

Contact us to learn more about how GoGlobal’s one-of-a-kind Recruit & Hire solution can help you access new talent pools of remote workers and digital nomads in India and beyond.