Did you ever stare at yet another job posting that’s been open for months with a coffee in hand?  You’ve racked your brains in interviewing local candidates and offered eye-watering salaries, yet no takers. Your budget is getting tighter than your morning schedule to keep up with their salary demand. The scenario sounds pretty familiar, right? Welcome to the UK hiring crisis!

But that certainly can’t be the end of story. Across the globe, in a land where IT pros outnumber entire city populations, a solution is brewing. Indian talent. 

In this blog, we’ll explore why hiring employees in India makes so much sense for businesses. We’ll also come across the recruitment strategies in India that UK firms should adopt. And lastly how an Employer of Record (EOR) can make it all effortless. Are you ready to get into this knowledge pod?  

What Challenges Are UK Companies Facing in Domestic Hiring?

I’m sure you all have faced hiring commotion in your lives. Yes, I’m talking to all the UK companies out there. Correct me if I am wrong. Every time you think you’ve found the right candidate, they demand a package that makes your CFO break into a cold sweat. Or worse, they ghost you! 

Honestly, hiring in the UK has become like finding a parking spot in central London. It’s difficult, expensive, and downright frustrating. Let’s break down the key challenges businesses are facing right now. 

Economic Tension in the Country

The UK economy has seen its fair share of turbulence. The rising inflation, cost-of-living crises, and Brexit aftershocks. Companies are struggling to stabilize operations. Amidst all this, hiring new talent has taken a hit. Businesses are cautious about expanding their workforce, especially in high-cost sectors.

Declining Job Vacancies

Recent data from the Recruitment & Employment Confederation (REC) highlights a slowdown in both permanent and temporary hiring. Industries like IT, finance, and education have seen a sharp decline in job vacancies. This grim scenario is making it difficult for businesses to find the right talent at the right time.

Shortages in Skilled Employees

The supply is dwindling, whereas the demand for skilled experts is increasing. The UK is currently undergoing a serious shortage of IT professionals, engineers, healthcare professionals, and financial analysts in its terrain. This has forced UK companies now to look for talent pools beyond the local boundaries, Indian talents being one of them.

High Competition for Talent

The tech boom has led to fierce competition for professionals in AI, IoT, automation, fintech, cybersecurity, and data science. Global giants are setting up operations in the UK. This is particularly getting challenging for smaller firms to attract and retain top-tier talent.

Budget Constraints

Hiring skilled professionals domestically comes at a high price. This has multiple reasons. Firstly, salary expectations in the high-demand sectors have skyrocketed. In addition to that, the high cost of living in the UK forces employers to offer substantial salary hikes. It is further pushing recruitment budgets for UK firms. Thus, competitive salaries and higher budgets for employee benefits are cumulatively crushing UK-based companies to scale efficiently.  

Now that we have well established the challenges of hiring in the UK, let’s move on to the next part. The one where we see how they are coping with this challenge.

Why UK Companies Are Inclined Towards Indian Talent?

So, as I said, this section will particularly talk about the solution to hiring challenges in the UK. And not just a solution, it’s undeniably one of the best out there. UK firms are leveraging the ocean of Indian talent left and right. Now, let’s look at why UK companies are making a beeline for Indian talent.  

Rise of Industry 4.0

• UK companies are embracing smart manufacturing, predictive analytics, and digital twins to stay competitive in the global market. However, this shift demands a workforce proficient in making data-driven decisions.
• India is one of the world’s largest IT hubs with a strong foundation in STEM education. The country produces a steady stream of highly skilled professionals. These professionals stretch across the fields of machine learning, cloud computing, and other such technologies. The technologies that define the “Industry 4.0”. 

Read through the blog to learn more about how to choose the right recruitment partner in India    

Mission Upskilling

• India’s Government-Led Initiatives like Skill India Digital Hub (SIDH) focus on large-scale upskilling programs. These initiatives equip millions with industry-relevant skills. The private sector and global partnerships play an equal part in this.
• Leading tech giants like Amazon, Alphabet, and Meta collaborate with Indian institutions to offer certifications, boot camps, and training programs. This enhances India’s workforce readiness for global opportunities.

 Embracing the Gig Economy

• India is booming in the gig economy with a projected 21.3% CAGR. The freelance market has reached $455 billion in 2024 (Source: Economic Times). This surge is driven by trending job profiles in design, content, and consulting.
• UK companies are adopting flexible, project-based hiring models for Indian talent. This trend is based on the growing remote workforce in India.

Business Beyond Metro Cities

• India is expanding its talent pools beyond its metro cities like Bangalore, Mumbai, and Delhi. Smaller cities such as Chennai, Bhubaneswar, and Coimbatore are emerging as strong alternatives.
• Hiring in smaller cities allows UK-based companies in India to access diverse talent without premium metro costs.

Did you see how UK companies are discovering a new road to hiring talent before hitting a dead end?

Did you know the UK-India relationship dates back to the 1700s? 

What Benefits Do UK Companies Get from Hiring Indian Talent?

Okay, so hiring from India sounds like a solid plan. But what profits are UK companies really reaping out of it? Where do I start? Top-notch talent at half the cost, zero HR headaches, the list goes on. So without any further ado, let’s walk through the benefits one by one.

Talent Surplus

India adds over 5 million graduates to its workforce every year, spanning finance, engineering, healthcare, and more. Hence, UK firms in India don’t have to scramble for talent. They just have to pick the right star for the job. Again, this leads to short hiring cycles and reduced hiring costs.

Talent Within Budget

Indian professionals offer high-quality expertise at a fraction of UK salaries. This cost advantage allows UK firms in India to optimize budgets without compromising efficiency.

Employee-Friendly Labor Laws

Unlike many Western nations, India’s labor laws are structured to support both employers and employees. Flexible contracts, outsourcing-friendly policies, and employer support systems make hiring Indian talent an attractive option.

Experience in Global Markets

Indian professionals often work with international clients. This makes them adaptable to different work cultures, time zones, and business practices. Their global exposure is an asset for UK firms in India.

Robust Infrastructure

India has a strong digital infrastructure. That includes high-speed internet, remote work tools, and co-working spaces. This makes it easy for UK firms in India to integrate talent into their operations like a picnic.

Curious how your colleagues back home are leveraging Indian talent?

What Strategies Should UK Companies Follow for Hiring Remote Indian Talent?

So far, so good! We have got adequate amount of reasons and benefits for hiring Indian talent. But the real question here is, how to do it remotely? Now that one is a thinker. Don’t worry, we have a strategy in place for you. Here they are:

Define the Role and Requirements

• Provide a detailed job description outlining key responsibilities. The description must cover the required skills and performance expectations. Additionally, specify whether the role is full-time, part-time, or contractual to manage work commitments effectively.
• Accurately classify employees based on legal frameworks to comply with both Indian labor laws and UK tax regulations. This includes understanding worker classification, tax obligations, and benefits eligibility.
• Proper classification helps avoid legal risks, financial penalties, and operational disruptions.

Leverage Multiple Sourcing Channels

• UK-based companies in India can explore various job portals such as Naukri, Monster India, and Shine. This will help them get the maximum reach of Indian talent.

• Additionally, platforms like LinkedIn provide opportunities to connect with passive candidates, industry experts, and niche professionals.
• UK-based companies in India can collaborate with Indian recruitment agencies for hiring Indian talent. This can speed up the hiring process drastically.
• UK firms in India can also strengthen hiring through campus placements, internships, and research partnerships.

Understand Legal Implications

• UK-based companies in India must understand key employment laws. This includes the Employees’ Provident Fund (EPF), Employees’ State Insurance (ESI), and the Maternity Benefit Act.

• Non-compliance with these laws can cost hefty financial penalties. It can even lead to legal actions like business restrictions or limitations on hiring employees in India.

• It’s highly recommended for UK firms in India to seek expert guidance to stay updated with these complex and evolving laws.

Hire Independent Contractors to Test the Labor Market

• Before hiring employees in India for a long term, UK companies can engage with Indian freelancers or independent contractors. This approach will allow businesses to evaluate Indian professionals through and through.

• This approach doesn’t require an immediate commitment of a full-time hire.

•  UK companies based in India can scale teams according to project demands by hiring independent contractors. Thus, they can have enough flexibility to customize hiring budgets efficiently.

 Partner with an EOR

• An EOR takes care of all HR and administrative tasks that you can think of for your remote team in India. They draft the most legally accurate employment contracts for your Indian talent.
• Not only that, an EOR handles the entire payroll processing on your behalf while hiring employees in India.
• An EOR oversees tax deductions, statutory contributions, and employment benefits for your Indian talent. It also maintains compliance with Indian labor laws.

How EOR Helps UK Companies in Smooth Hiring of Employees in India?

After the descriptive section on how to effectively hire remote Indian talent, it’s time to narrow down our research. Now the introduction of EOR has already been done in the previous section. Here we’ll discuss how the model eases up hiring employees in India for UK companies.

Screening and Interview Process

An EOR in India acts as a perfect recruitment wingman for UK companies. From scouting top Indian talent to screening resumes and coordinating interviews, it has got your back. It helps UK firms in India to cut through the clutter and find the perfect fit for the team.

Drafting Appropriate Employment Contracts

As you might have read in this blog earlier how EORs draft the most immaculate employment contracts. Much like a legal GPS. They ensure that your employment contracts don’t take a wrong turn. They free you up from all legal jargon. All while you align with the employee policies and expectations of both countries.

Determine Employee Compensation

EOR is your easy solution to hire employees in India without the lethal salary calculations. It offers structured compensation packages and makes sure that your employees are fairly paid.

Ensure Fair Employment Practices

EOR builds a team of Indian talent that’s protected, productive, and fairly treated. An EOR follows hiring practices that aren’t just legal but also ethical. Some of them include minimum wage compliance, timely salary payments, mandatory leave benefits, etc. It also covers fair working hours, social security contributions (like EPF & ESI), and anti-discrimination policies.

Ensure Smooth Onboarding of Employees

First impressions matter, and onboarding is where it all begins. An EOR makes sure that the new hires feel at home and don’t feel lost in the new team. An EOR conducts a formal onboarding process. This process consists of all the required documentation plus cultural integration. An EOR helps team members to gel with each other so that they are productive from day one.

Conclusion

So there you have it. UK companies and Indian talent coming together to crack the hiring code. As you’ve come to the end of the blog, I believe you’ve got a very simple answer for your big fat problem of talent shortage in the UK. If not, I’ll lay it down for you. Hiring employees in India via a platform that will make you ready to roll from day one.

Yes, I’m certainly talking about “The EOR model”. The best part about this approach? You stay way ahead of your competitors without burning a hole in your pocket.  

The hiring roadblocks? Dodged. The talent? Secured. The cost? Optimized.

I’m sure there are still loads of questions bearing your mind. We’re always here to help you with that. Talk to us about your problem, and we can find you a solution.

Because in the wise words of Mary Kay Utech, “It’s not a problem that we have a problem. It’s a problem if we don’t deal with the problem.”