Recruitment Practices
In the last several years, India’s economy has experienced substantial growth – thus, companies in all spheres require talented and qualified specialists to retain both individual and national development. As a result, their HR departments consider the latest trends in recruitment to improve the efficiency of their practices. In general, practices that exist in India’s recruitment industry are common for the majority of developed countries and include social recruitment, referral programs, HR automation, and flexible work scheduling. At the same time, Indian recruitment has several peculiar features – for instance, an employer’s reputation is used as a source of attraction. Thus, HR managers use social media platforms not only to search for talent but also to promote their company’s achievements. In addition, along with digital ones, work-related printed ads in publications are surprisingly effective as well. Moreover, as the representatives of a high-context culture, Indian recruiters refer to in-person meetings with candidates rather than web-based communication.
Payment Systems
Regardless of economic growth, strong ties of India’s globalized private sector with developed economies, and the presence of foreign investors, the national average salary remains low, making India a desirable country for outsourcing. In general, the country’s wage structure consists of several elements, including basic pay, dearness allowance, overtime allowance, bonuses, and fringe benefits. While basic pay is the minimum wage for the sustenance of life and the preservation of a worker’s efficiency, dearness allowance is the basic salary’s fixed percentage that allows for minimizing the impact of costs’ fluctuation. Overtime payment is guaranteed by law if work exceeds 9 hours per day or 48 hours per week. Finally, obligatory bonuses and benefits are used to stimulate employees’ performance and increase their motivation.
Labor Relations
Considering labor relations, India’s business sector is affected by the country’s cultural values and beliefs, including collectivism and high power distance. In other words, Indian culture is characterized by collectivism, in which “individuals are expected to act in accordance to the greater good of one’s defined in-group(s)” (“What about India?,” n.d., para. 5). Moreover, success is perceived as the coordinated efforts of all group members. At the same time, labor relations are ruled by distinct hierarchy, centralized power, control over subordinates, and superiors’ unquestionable authority.
Training and Support
In the present day, India realizes the importance of employees’ competence, knowledge, and skills, respecting specialists’ right to personal and professional development. As a result, multiple companies have increased their training budgets and focused on the provision of employee support to retain the most talented and qualified ones. In addition, according to the World Economic Forum (2020), in response to shifting skills needs, 95% of companies expect that their employees will acquire necessary skills in the workplace, while 92% of organizations retrain existing employees. All in all, in India, the training and support of employees play a crucial role in the country’s economic development.
Recommendations
Considering India’s human resource practices, it is possible to conclude that they may be regarded as acceptable for an American company’s expansion. As India’s economy is rapidly developing and a considerable number of companies focus on the partnerships with Western colleagues, their HR departments tend to apply the latest trends in recruitment in order to meet global standards. At the same time, the considerable differences in labor practices may create substantial challenges for entering India’s market. While the United States values individualism and relative equality of superiors and subordinates on the basis of cooperation, India is characterized by collectivism, centralized power, and hierarchy, in which subordinates’ initiatives may be ignored. On the one hand, both countries are flexible in a competitive environment and aim to succeed, remaining open to new ideas and innovation. On the other hand, the Americans’ ambitions, straightforwardness, and strict scheduling contradict the Indians’ attention to detail, time-consuming decision-making, and tolerance to imperfections. All in all, Southwest will succeed if it articulates the necessity of following its high standards that will contribute to Indian partners’ reputation while respecting the aspects of an Indian culture related to business as well.
References
What about India? (n.d.). Hofstede Insights. Web.
World Economic Forum. (2020). The future of jobs report 2020 [PDF document]. World Economic Forum. Web.