India has become a hotspot for hiring remote talent. With a skilled, English-speaking workforce and competitive labor costs, more companies worldwide are looking to assemble teams in India.

However, hiring remotely in a new country involves overcoming challenges like legal compliance, cultural differences, communication barriers, and more. You must have a structured process to build an effective remote team in India.

In this guide, we will explore actionable tips to hire the best talent in India for your remote teams.

Why Hire in India for Remote Work?

Hiring remotely in India offers unique advantages:

Abundant Supply of Skilled Talent

India produces around 1.5 million engineering graduates each year. The country has the world’s largest youth population, with 600 million people under 25.

This tech-savvy, qualified talent pool makes India an ideal location to find programmers, developers, IT professionals, and more. Top Indian universities like IITs and BITS Pilani also produce highly employable graduates.

English Language Skills

125 million Indians are English speakers, second only to the US. This allows smooth communication and collaboration with global teams.

Favorable Time Zone Difference

India’s time zone overlaps well with North America, allowing real-time coordination.

Cost Efficiency

Talent costs in India are significantly lower than Western countries. Average software developer salaries range from $10,000 to $35,000 per year.

Hiring Indian remote workers can reduce labor costs by 60-70% compared to the US.

Government Support for Remote Work

The Indian government has policies to support work-from-home and remote employment. Digital infrastructure is improving rapidly.

Internet penetration has grown from 4% in 2007 to over 34% in 2019. This expanding connectivity makes distributed teams viable.

How to Hire Employees in India Remotely

Follow these steps for compliant, effective remote hiring in India:

Research the Job Market

First, analyze the Indian talent market to determine:

• Skills in demand – Programming, app development, data science, etc.
• Experience levels – Entry-level, mid-level, senior
• Salaries – Compensation norms for various roles
• Locations – IT hubs like Bangalore, Gurgaon, Mumbai, etc.

This will help you identify the right talent pool for your needs.

Use Multiple Hiring Channels

Leverage diverse sourcing channels to access India’s deep talent bench:

• Job portals – Naukri, LinkedIn, Indeed, etc.
• Social media – Active tech communities on Facebook, Twitter
• Colleges – Tap alumni networks at IITs, BITS, etc.
• Co-working spaces – Scouting at ventures like 91Springboard, Awfis, etc.
• Referrals – Employees, friends, networks in India

Cast a wide net by advertising across these platforms.

Screen Candidates Carefully

Review applications and resumes to shortlist candidates with relevant skills and experience.

Conduct skills assessments for technical roles. For example, assign a small coding project for developers.

Schedule video interviews to evaluate English proficiency, communication clarity, and cultural fit.

Check references to validate past work quality and ethics.

Only proceed with the most qualified applicants.

Explain the Job Details

Provide complete job descriptions highlighting:

• Role responsibilities
• Required skills and credentials
• Work hours and schedule
• Performance evaluation process

Ensure candidates understand the job expectations and workplace culture.

Handle Legal Compliance

Research India’s labor laws covering minimum wage, social security, taxes, leaves, etc.

Consult experts to ensure full legal compliance and avoid penalties.

Consider using an Employer of Record (EOR) to manage compliance, contracts, payroll, and benefits.

Draft Formal Agreements

Prepare detailed contracts specifying compensation, leave policies, notice period, confidentiality clause, code of conduct, and other terms.

Have the agreements reviewed by lawyers familiar with Indian regulations.

Ensure every new hire signs the contract before starting work.

Onboard New Employees

Conduct a thorough onboarding program covering:

• Company information and work culture
• Team introductions
• Process and policy training
• Access to systems and tools
• Performance standards and goals

Regularly check in during the initial months to provide support.

Train the India Team

Conduct ongoing training on:

• Domain knowledge – Product, technology, industry, etc.
• Processes – Workflow, internal systems, documentation, etc.
• Tools – Software, platforms, security protocols, etc.
• Communication – Cultural nuances, etiquette, collaboration style

Schedule regular refreshers and feedback sessions. This investment will maximize productivity.

Key Aspects of Managing Remote Teams in India

Hiring is just the first step. You must intentionally manage your India remote team for success:

Build Trust

Trust is crucial for distributed teams. Encourage open communication and transparency. Recognize achievements frequently.

Travel occasionally to India to meet your team face-to-face.

Define Clear Goals

Set specific goals and key results for each role. Track progress through tools like Asana or Trello.

Align individual goals to overall business objectives.

Schedule Regular Check-ins

Catch up daily over chat or weekly over video calls. Discuss progress, roadblocks, and questions.

Frequent conversations keep remote workers engaged.

Provide Continuous Feedback

Provide regular positive feedback on work. Constructive feedback helps improve.

Do annual or bi-annual reviews to discuss performance and growth opportunities.

Encourage Collaboration

Enable team bonding across locations with activities like virtual coffee meetings.

Celebrate successes and special occasions together. Recognize work anniversaries.

Use collaboration tools like Slack, Microsoft Teams, and Zoom.

Offer Equal Benefits

Provide Indian team members similar benefits as onsite employees – insurance, time-off, learning budgets, etc.

Be flexible with policies that account for cultural differences.

Invest in the Latest Tools

Equip your India team with reliable infrastructure – high-speed internet, PCs/laptops, collaboration software, VPN, etc.

Minimize connectivity or hardware issues that disrupt work.

India Employment Compliance Considerations

It is crucial your remote hiring practices adhere to Indian labor laws:

Minimum Wage

India has minimum wage laws at the federal and state levels. Ensure base pay meets legal minimums based on location and skill level.

Leaves

Provide mandatory leave including 12-26 weeks maternity leave, 15 days paternity leave, 12 days sick leave, and national holidays.

Employment Contracts

Have legally valid employment contracts in place for every hire. Include termination clauses.

Payroll and Taxes

Handle payroll, income tax deductions, social security contributions, etc. as per regulations. File returns on time.

Work Hours and Overtime

Adhere to limits on maximum work hours per week and overtime pay requirements.

Statutory Bonus

Pay eligible employees a yearly statutory bonus equal to 8.33% of salary.

Provident Fund

Contribute 12% of the basic salary towards Employees’ Provident Fund (EPF). Deposit monthly.

Professional Tax

Deduct small professional tax from salaries. Rates depend on state and income level.

Options for Hiring and Managing Remote Staff in India

You have three main options to build your India remote team:

1. Establish an Indian Subsidiary

Pros:

• Full control and oversight of hiring, payroll, policies
• Build company brand in India

Cons:

• Complex registration, capital requirements
• Ongoing compliance overhead high
• Slow and expensive to set up

2. Work with Independent Contractors

Pros:

• Quickly onboard workers
• Low management overhead
• Pay only for work done

Cons:

• Limited control over contractors
• Risk of non-compliance
• Attrition may be high

3. Partner With an Employer of Record (EOR)

An Employer of Record (EOR) is a company that acts as the legal employer for employees hired by another company in a different country. The EOR handles all employment compliance, payroll, taxes, and benefits on behalf of the hiring company in accordance with local labor laws.

Key responsibilities managed by an EOR include:

• Recruiting and onboarding employees
• Drafting compliant employment contracts
• Registering employees for social security and insurance
• Managing payroll and deductions
• Filing and paying income taxes on behalf of employees
• Providing legally required benefits like leaves, bonuses, etc.
• Ensuring adherence to employment regulations

EOR services enable companies to hire staff and expand globally without having to set up a local entity in every country. The EOR becomes the legal employer while the client company manages the day-to-day work and operations.

EORs like Globalization Partners, Elements Global Services, Safeguard Global, and others help businesses hire globally with ease while ensuring compliance. They are a cost-effective alternative to establishing foreign subsidiaries.

Pros:

• Start hiring in days without a local entity
• EOR handles legal compliance
• All employer responsibilities managed
• Cost efficiency of full-time team

Cons:

• Service fees charged by EOR

An EOR like Gloroots simplifies compliant remote hiring at scale in India:

• Quick hiring – Hire faster, no registration needed
• Compliance experts – Stay compliant with regulations
• Payroll and taxes – Payroll processing, tax filings
• Benefits and insurance – Mandatory benefits like PF, leaves
• Employee support – Tools for managing remote teams

Key Takeaways for Hiring Remotely in India

India offers an unparalleled talent pool to scale distributed teams. Follow these best practices for success:

• Research the job market to understand demand and costs
• Use diverse sourcing strategies to access the wide talent base
• Screen carefully to hire the best candidates
• Ensure legal compliance with labor regulations
• Onboard and train new hires effectively
• Communicate extensively and build trust
• Provide infrastructure and equal benefits
• Manage remote workers just like local team members
• Consider partnering with an EOR like Gloroots for simplified compliance and hiring support

With the right approach, India provides immense opportunities to access skilled talent and build high-performing remote teams. Structure your hiring process, manage your team intentionally, and leverage expert help to overcome challenges.

India’s depth of qualified professionals, favorable time zones, cost savings, and government support make it an ideal country to tap into for your remote staffing needs. Follow the strategies above to assemble an outstanding remote team in India that takes your business to new heights!