Home / Insights & Resources

Practical guides on hiring and HR decisions for growing businesses.

Short articles on decisions that business owners and HR heads face as their company grows.

Recruitment

Permanent or contract: how to choose the right hiring model

Most hiring decisions start with a job title. A better starting point is a question about time: how long will you need this work done, and how sure are you of that?

Hire permanently when the role is part of how your business will run for years. Sales managers, finance heads, team leads and core engineers build knowledge of your customers and systems that is hard to replace. A permanent hire takes longer to recruit and is harder to reverse, but the investment pays back when the person stays.

Use contract staff when the need has an end date. Typical cases are a project with a fixed deadline, a seasonal peak, leave cover, or a specialist skill you need for a few months. You add capacity quickly, your fixed costs stay flat, and when the work ends the contract ends. A staffing firm can also act as the employer on record, handling payroll, PF and ESI so you do not have to.

When you are unsure, consider contract-to-hire. The person works with you on contract first, and you agree conversion terms at the start. Both sides find out whether the fit is right before committing.

Three questions settle most cases:

  • Will this work still exist in two years?
  • Does the role hold knowledge or relationships you cannot afford to lose?
  • Could you carry the full annual cost if business slows?

If the answer to all three is yes, hire permanently. If any answer is no, look at contract staffing first.

HR

Setting up HR in a growing company: what to put in place first

In the early years, HR in most companies is the founder, a spreadsheet and a payroll provider. That works until the team is too large for everyone to ask the founder every question. At that point, a few basics prevent most problems.

Start with statutory compliance. Check your registrations and filings for PF, ESI, professional tax and the shops and establishments rules of your state. Gaps here carry penalties and are much harder to fix later.

Write down the rules people already ask about. Working hours, leave, holidays, notice periods, expense claims and conduct. A short employee handbook, applied consistently, settles most disagreements before they start and protects you if one becomes a dispute.

Give every role a written description and put salaries into simple grades. Without grades, pay is set one negotiation at a time, and new hires often end up earning more than experienced staff. Few things lose good people faster.

Set up a light performance process. Goals agreed at the start of the year, a mid-year check-in and an annual review. Keep the form short. A process managers actually use is worth more than a detailed one they ignore.

You do not need a large HR team for any of this. You need one person who owns it, and the decisions written down. An HR consultant can draft the documents and train your managers, while the day-to-day running stays with an HR executive or office manager.

Recruitment

Planning a bulk hiring drive that keeps quality up

Hiring fifty or a hundred people for a new site is a project, and it usually fails for project reasons: unclear numbers, a late start and nobody tracking drop-offs.

Begin with a hiring plan. List every role with the number needed, the shift, location, salary and the date each batch must start. Work backwards from that date, allowing for notice periods, document checks, background verification and training. Plan to make more offers than you have places, because some candidates will not join.

Run several sourcing channels at once. Job portals, walk-in drives, campus visits, local training institutes and employee referrals each reach different people. Frontline roles often fill well through walk-ins and referrals, while supervisors may need a direct search.

Use the same assessment for everyone. At volume, the biggest risk is that each interviewer applies their own standard. A short practical test, a structured interview with set questions and a clear pass mark keep selection fair and make decisions quicker.

Manage the gap between offer and joining. Candidates for volume roles often hold more than one offer. Regular contact, clear joining instructions and quick document processing reduce no-shows on the first day.

Track a few numbers every day: applications, interviews, selections, offers and joiners for each role. They show where the drive is stuck while there is still time to fix it.

Finally, write down what worked. The next site is much easier when the plan, the assessments and the results by channel are ready to reuse.

If one of these decisions is on your desk, talk it through with us.

Tell us the details and we will give you a straight view on what to do.

WhatsApp us