The government of India is currently facing a tough challenge to generate job for the country’s 1 million citizens who reach the employment age every month. Our policies makers, economists and ministries are exploring every possible way to fill this job gap.
Speaking on this issue, manpower outsourcing & HR contracting expert Ms Kanika Kohli, Vice President of Northern India’s number one manpower outsourcing company Trendsetters Facilities & Technical Services (TFTS), suggests that Indian can see two digit employment growths with special emphasis on manpower/labour outsourcing companies. As the availability of efficient and economical manpower outsourcing service directly enhance the business production and profitability level, especially in the small and middle size companies.
Ms Kohli adds that at present Indian small and medium enterprises employs over 40%of the total workforce in the country and contributes 17% of GDP. In fact after agriculture, SMEs are the second to fostering employment opportunities. Hence if the government succeeds to boost Indian SMEs a large-scale employment opportunity can be generated in India.
According to a survey conducted by Firstbiz and its knowledge partner the Greyhound Knowledge Group across 540 SMEs in India, it was found that a major operational, production and profitability challenge that Indian SMEs faces are caused due to:
a. Lack of availability of skilled labour.
b. In-flexibility of Indian labour laws.
The primary factors that cause the skilled labour shortage and labour law problems in India are:
1. Geographical location of the business. In a country like India, businesses are generally located in special economic zones and these zones are commonly situated in city outskirts and away from densely populated and progressive urban areas. This restricts the effective recruitment process as communicating about job vacancies, reluctance or limitation to commute large distance and other issues restricts the availability of skilled labours.
2. Interview and selection process requires human resource management experience, skill, time and infrastructure (to do tasks like employee background verification etc). That small business and startups generally lack.
3. Labour law: lack of time and experienced person who can deal with the technicality of labour law also put Indian small business in trouble.
Ms Kanika shares this is where a manpower and HR outsourcing organization comes handy. Manpower outsourcing companies hold experts & experienced people as well as better infrastructure to execute effective recruitments– they can recruit people from various parts of the country and send them to the business in case specialised manpower is not available at the place where the business is situated. They have labour law specialist on their panel that can help their clients to follow labour law compliances.