Hiring, Terminating and Retaining Employees in India

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Issue 30 · February 2016 · I ndia Briefing
Employers that cannot compete financially with
others in their industry should consider locating
their business in Tier II or III cities, where salaries are
generally lower. Alternately, employers can seek to
offer job candidates and employees a wide variety
of career growth and learning opportunities, which
are highly valuable to graduates and professionals in
India.Whilemoney is important, it isnot the sole factor
that determines if an applicationwill benefit the firm.
Work-Life Balance
Employees in India typically view employer’s policies
for overtime, work-from-home as well as medical
and vacation leave as part of their work-life balance.
Companies that are fairly liberal with suchpolicies are
typically viewed in more favorable terms by Indian
professionals. Foreign employers in India should
recognize that families take priority over work and
adopt a family-friendly approach to support better
work-life integration.This canbeachievedby allowing
leave at short notice for family emergencies or a
flexibleholiday schedule that respectsdifferent ethnic
and religious groups’traditions.
Job Stability
Job security and stability are vital factors for graduates
and professionals making career decisions. Labor
experts note that it is not uncommon for Indian
candidates to accept a lower compensationpackage
for a more stable role and company over a higher-
paying, less stable job.While thismindset is changing,
andyoungprofessionals don’tmind taking less stable
jobs asmuch as older generations, there is still a clear-
cut preference for more stable jobs in India.
Working with Indians
BusinessetiquetteinIndiaisinformedbyacomplicated
mix of Eastern and Western traditions. For foreign
investors doing business in India, it is vital to cultivate
a basic understanding of local customs to remain
effective in meeting business goals.
Honor and shame play a more important role in
India than they do in the West. In the workplace,
these cultural influences can affect everything from
management to sales. In the event of unconstructive
management feedback, an Indian employee is more
likely to feel dishonored and shamed – with little
opportunity for recourse or redemption – than the
averageWestern employee. During the sales process,
aWesternexecutive that suggests that an Indianclient
should improve abusiness processmay inadvertently
dishonor or shame the client.
In India, it is important toappeal toaperson’s honor. In
fact,‘namaste’, a traditional greeting, loosely translates
to“I bow to the divine in you”. While this may appear
irrelevant, this demonstrates the importance of
beginning a discussion with a focus on honoring a
business colleague or associate, which can make a
difference on whether a consensus is reached with
an Indian counterpart.
Linear and Non-linear Work Styles
After establishing a relationship based on cultural
respect, it is important for foreign businesspeople
to consider how to achieve their business goals.
Western businesspeople often use a linear approach
to business strategy and processes. Under a linear
approach,abusinesspersonmayfollowastep-by-step
process to achieve goals by a certain date. Western
personnel may employ a direct and reductionist
method toachievegoals. A linear approachprioritizes
getting the job done.
In India, however, some local personnel may prefer
a more indirect and holistic method for their work.
This can be understood as a non-linear approach to
work. In a non-linear approach, personnel explore
their relationship with a web of factors that impact
a process or goal. A non-linear approach prioritizes
personal and professional development.
Foreign managers or salespeople in India that work
in a linear fashion may sometimes feel that locals are
unresponsive or disinterested in their business goals.
However, rather thanpassivityor disinterest, locals are
likely exploring their personal relationship with the
business process or goal before committing to the
best possible way to achieve that goal.
Foreignbusinesspeoplethatcreatevoiceopportunities
for locals – throughbusinessmeetingsor social events
– accommodate non- linear work styles without
compromising linear business objectives.