The general practices of hiring individuals in India need to be updated. Despite having a proper hiring channel, the companies hire individuals who must be more competent to lead the organisations.  

Based on my experience, I have worked out some significant setbacks and mistakes in the general hiring process. Taking heed of those could help find talented individuals for every industry in India. 

Vague or no defined Job Descriptions

Job descriptions play a critical role in the hiring process as they serve several vital functions like defining the scope of the job. Generally, most organisations in India need to make a job description with result oriented matrix which is measurable. They need a clear idea about what work they will take from an individual.

A JD clearly outlines a particular role’s responsibilities, duties, and requirements, which helps attract suitable candidates and ensures everyone is on the same page about what is expected of the position. 

A well-written job description with measurable parameters can help attract deserving candidates by highlighting the job’s key responsibilities, qualifications, assessment criteria, and the future matrix for the candidate. When the candidate is selected, most of the time, the HR department feels that their role is over, and the part starts from there on how to align the person with the company goals.

It is the crux of the problem as with a well-defined job description, it becomes easier to evaluate the performance of an individual. 

The communication medium in the interview

Most of the time, HR people try to take interviews in English, where the candidate may need to be more comfortable.  The assessment of candidates is impacted as we can’t find the person’s real personality in such cases. 

Moreover, some jobs don’t require English speaking at all. Therefore, the candidate should be judged on the job profile, and communication medium should be used according to the job requirement.

English has become a tool for accessing the candidate, which has become a major challenge as sometimes HR people run down the person sitting in the interview with the English speaking. 

Rather than interviewing a candidate, they start giving their interview by showing the candidate how good they are in English.

In India, the level of one’s English can vary greatly depending on a candidate’s background and education, and it may not accurately reflect their ability to perform the job. 

Additionally, it is not uncommon for highly qualified candidates to feel nervous during an interview, which can impact their ability to communicate effectively in English.

The people who have been working for a longer time in any organisation don’t know how to give interviews as they were working in an organisation for a more extended period and not exposed to discussions so they might not be suitable in consultations on the other hand people who have been hopping jobs become experts in interviews as they keep giving interviews regularly. English has become the first language in corporate India, which is a significant cause of concern as HR people feel that important for the candidate to speak fluently.

Ignoring Family Background

Generally, in Indian culture, individuals who are excellent in academics turn out to be bad managers as they are not very social. Their focus was always on their studies. They may be good in memory tests or IQ, but social skills are essential for making a manager. 

The points that need to be focussed on while hiring people in India are the background of the family, the role of father and mother in the upbringing of that person, sports played in school, college, etc. 

The non-academic content should be considered to gauge the aptitude and approach of the individual. It is possible that the subject in which the person has majored is not the core strength of that person.

The Less Weightage on Background Check 

The HR people hardly have 5 to 10% of the weightage for the background check of individuals. It should be worth 60 per cent of the interview process.

This is because the person who performed excellently in the previous organizations will also have a high chance of performing better in the new organisation.

If the person is fresh, we need to check whether the status he gave in the interview is accurate or whether he has lied. In the discussions lying is very standard practice.

They are not confirming the authenticity of salary slips.

It is a standard practice for the interviewees to lie during the interview. The HR people also need to be smart enough to understand if some fake experience is added to the resume of individuals. 

Moreover, there are events when candidates appear with fake salary slips and certificates. HR people should have a standard procedure to verify all these documents. 

There are better ways to confirm than calling people on the phone. Companies should hire an agency that can verify these facts personally.

By not linking Individuals to the Company’s Financial Goals.

The work of the HR department continues after conducting the interview and selecting a person. One of the HR department’s significant challenges is linking the hiring person to the company’s financial goals.

The JD needs to have a clear role after joining the review process. Linking hired individuals to the company’s financials always needs to be included.

It indirectly affects performance evaluation, loss of incentives, slow career development, and termination in some extreme cases. 

It’s essential for companies to regularly assess the performance of their employees and provide opportunities for growth and development, including training and support, to help them meet their financial goals and contribute to the company’s overall success.

Final Thought

The general practices of hiring individuals are hard-knitted within Indian culture. There is a substantial need for the HR departments to reconsider their hiring strategies and focus more on the potential of the individuals rather than their academic backgrounds. 

Developing a strong set of unorthodox questions would make it easy for HR people to find the best-talented individuals for the relevant companies.

The new law, called IBBI, was made with excellent intention by the Narender Modi government, as he has the vision and the guts to change the country. Still, the law’s implementation is full of flaws, and laws keep changing every six months, and the intention with which they were made was never achieved. Instead, it became the tool for the destruction of existing Indian companies, as the companies that the Indian entrepreneurs built through blood and sweat were ruined with a single stroke of admission into the NCLT. The banks also lose their investment. The primary intent of making this law was to revive the companies and make them run if they were in trouble, then preserve their value and run them so that employment is not lost, banks can make their investments safe, and suppliers and other stakeholders can get the value. Still, if we see the data until today, most companies admitted to the NCLT have gone into liquidation, where entrepreneurs, banks, employees, suppliers, distributors, and customers are suffering huge losses.

The Domino Effect That Harms Everyone.

One big company going into liquidation creates a situation where a few of the suppliers and distributors also go into bankruptcy which is not noticed by anyone.

This law was enacted with the right intention by the BJP government, but who were the people involved in making these laws? Were they entrepreneurs ,politicians ,bureaucrats, advocates or academician or bankers. In India, when the laws are being made, generally some people are chosen to make the committees who have hardly any knowledge about those subjects, or people who are celebrities in these fields are made members and don’t have time to look into the nitty gritty of that particular law point. So this law was imported from the England and enacted, and then Indian thought was mixed with this law.

If we see the complete history of this law, we know that it keeps changing every six months. Changes were made randomly and still more lacunae are found out later and changes keep happening but lot of money of banks is already lost and entrepreneurs are also ruined and so many people are suffering. However, even today, the mess is still there, and courts pinpoint the areas where lawmakers did not give clarity so many aspects of the law, and the grey areas are left. The ultimate objective of this law didn’t achieve its purpose, and the destruction was rampant. Initially, banks were also very enthusiastic about getting quick recovery from this law but they also realized it was a destruction of their loan amounts .As the law progressed, bankers were also punished by being put behind bars, and the bankers stopped disbursing loans. Now another challenge started for the government: bankers were not ready to give loans, and the government tried to convince them that no action would be taken against them. Most of the entrepreneurs were put behind bars, and the CBI, ED, and MCA all started the harassment for the same cases. First, CBI came, then ED, and then MCA, asking the same questions repeatedly.

Who were to decide that the loans that they classified as bad loans were actually bad loans because, in one day, the definition of bad loans was changed by the RBI to put a spanner in the running economy, which used to have easy money available? Businesses were growing fast, and maybe a few entrepreneurs and bankers were taking advantage of the systems which could have been taken care by an alternative system. Implementing this law at a large scale without doing any due diligence was a big goof-up. Still, one fine day, everything is changed without giving any proper thought to what will happen if we change the system and restructure overnight. What will happen to Make in India companies who could be destroyed with this law. Are we prepared because there were many agencies for implementation, and they were not prepared and trained to handle such a situation?

The major challenge was determining who would run the company during the moratorium period. Their things were taken very lightly, which became one of the primary reasons for failure. The government created a post for a resolution professional and made an exam for the professionals to come and clear the exam and become the RP. All professionals who were not settled in life or people who were young and inexperienced cleared the exams and became RPs.

Big 4 And the Corruption

The next big goof was when those big four jumped into the arena, seeing the massive potential of making money, and they put these RPs on their rosters, or some other agencies that were doing similar businesses came to the fore and hired these RPs.

The corruption started significantly as the RPs gained experience, and they never ever ran companies. Even the big four never ran the companies and lacked the entrepreneurial skills and expertise to run the companies. Even the lawmakers who enacted the laws did not know how the companies were run. In the company changing a management is not possible and if done overnight the company can be finished , this is a very tricky situation. That’s why entrepreneurs are struggling to keep their flock together who know their job and everything is not black and white and governed by the laws that happen wherever the government functions runs on the system and processes whether they are being adhered or not.

So when they enacted the law, the first thing was to publish an advertisement in the newspapers that the company has gone into liquidation, so please file claims against whoever had to take money from the company.

Now, people who have been running the companies know that one day the company’s valuation will take a big dip as soon as this announcement is made in the media because all the stakeholders will stop investing money and time. The company will take a big hit. All the stakeholders or customers get a jolt about what will happen next to the company.

The customers are swayed away by the competitors with bad stories. Employees become insecure, and suppliers are entirely in the dark about what will happen next.

The IBBI guidelines do not mention the handover of the company or employees or procedures for dealing with an existing entrepreneur and the employees, suppliers, distributors, or customers. How to run the current concern as a going concern, and everything is left to the RP and his team, supported by the team provided by the companies that have hired the employees, and now the loot maar starts. Banks generally do not want to invest, and now the company that is at this stage and having cash flow issues and other issues is paying the bills of RP and his team, which can’t contribute to running the company. They only try to scare the promoter and employees with their powers. Most of the good employees leave the company, and a significant portion of expenses are done in the name of following processes and procedures. The company becomes broke in no time. The company which goes in to the NCLT already has very tight fund flow position and moment they enter they start charging the company for various people and processes which becomes a big burden on the company which is already stressed and most of the time banks don’t invest money to save the cash crunched company and these big four make fat bills in the name of processes, people and legal expenses which become the sure shot recipe for company closing down and going for the liquidation. Once the running company closed down its value is eroded completely. This has happened to most of the companies which went in to the NCLT. First the running companies are closed down by these people and then sold to buyer at the 5% to 20% of the value of the company on the valuation which was taken over by them. The valuation of the company is a standard procedure which they have to get it done by two valuers, one should get the data from the IBBI that how many companies are sold at the same valuation or more when these big fours entered the company. If they have eroded the valuation than who is responsible that. Is Entrepeneur is responsible for that destruction as he is kept out of the company from day these firms’ takeover. The RP and these big fours don’t involve the Entrepeneur even in the valuation process and don’t give him valuation reports in the name of law but once everything is sold at the throw away prices, they demand the rest of the money from the Entrepeneur.

Why to keep promoter out of the valuation is a big question mark so his company is taken over and he doesn’t get a chance to show to the valuer what he has created as the promoter is the first and the last person in the small and mid-size company to tell the valuer what is lying where and how much it can be sold and to whom which can be valued by the valuers independently. but not involving the promoter in the valuation and not telling him the valuation after the valuation is done is itself is my fundamental right being denied to me.

How Are Suppliers Affected?

Even the suppliers face the next significant brunt as the law stipulates that the supplier can’t get the money for his previous supplies. He can get only new money against the new supplies, which makes him pissed off and not ready to cooperate with the management, and the administration is unique. It can’t give him any commitment or assurance. So the supplier is insecure, employees get insecure, and the promoter is put in a legal tangle where he is a defaulter and he is answerable to every government agency in this world. He is accountable to RP, the banks, forensic auditors, and later to the CBI, ED, and MCA. Now he will become old, answering to all these agencies, and will be harassed till his death.

Is IBBI Fulfilling Its Purpose?

The purpose of the law was to run the companies, which are stressed by the promoters, and give another chance to the champion to make another company and add value to society, but what came out was that the promoter was fighting his legal battles and lost his reputation, and the agencies and banks also didn’t get their dues. These same agencies and countries also harassed bankers as a whole. Once the CBI raid is done, the promoter’s name and company names tell how much money he has embezzled and not what he has created, such as what brand or what kind of factories and human resources he has trained, how much tax revenues he has created for the country, how much exports he has created, or how many establishments with knowledgeable people he has built around him.

Let us take the case of Su-Kam, and when they entered the company, RP got the valuation done, which was the process part, he got the value done from two valuers and it was approximately 300 Cr which was higher than the loan amount of that time. this valuation was done by the RP keeping me in the dark and repeatedly they didn’t disclose the valuation to me which is a big question mark for the IBBI process as the banks and IBBI for the RP and the agency which ran the process whether these people sold the company more than its valuation or not. If not than its a big loss they have done to the exchequer as they could not do the right job. Are losing on a very important point. As this should become the assessment point for the banks and IBBI The bank’s overdue on the day of company going to NCLT approximately 260 Cr, and the banks filed a complaint with the CBI that I owed them 260 Cr, and CBI filed an FIR against me and started proceedings against me. I have a question to ask from the banks and IBBI why didn’t they file the same complaint against the RP and agency handling the liquidation that how much loss they created for the exchequer by selling the company at such low price and so many people lost the jobs and suppliers got ruined and dealer distributors lost money in warranties and few of them to closed down their shutters and where is the company valuation that they took over from me and valued at Rs 300 Cr? If valuation of the company was 300 Cr after the advertisement of liquidation etc. imagine had they done the valuation before advertisement in the newspapers it would have been 500 Cr plus. This has no significance in the whole process while the company is in the NCLT as valuation is only done as a formality whereas it should be seen as an Entrepeneur’s honesty.

The government spent so many crores on skilling but couldn’t get jobs for the people, but here, entrepreneurs hired people without any skills and made them talented. So many people went abroad with the help of the entrepreneur’s professional setup. Now that the kids of entrepreneurs are watching their parents go through these uncertainties and bad times where all the agencies are after you, CBI, ED, MCA, and legal cases in DRT, NCLT, high courts, or local courts being harassed by cheque bounce cases by the customers and suppliers that the company bounced, and all the customers are filing cases in local courts against the company and the entrepreneur, and the company has the moratorium but the entrepreneur has no moratorium. So, we keep going from one court to the other, fight our endless cases, and die fighting these cases, and people who are close to us will never dare to do business in this country. This law has created fear among the entrepreneurial community, as the question is not whether companies will prosper or fail, but whether your business will fail in India. If you have taken a loan from the bank, then the failure of your business will become a battle for an entrepreneur, as his case will be classified as a fraud account by the banks, and his case will be handed over to the CBI for investigation. The same harassment will continue by the other agencies. Since all these agencies don’t have the time to investigate such a massive load of cases, the investigation continues, and maybe till our deaths, these cases will not be decided. So, this is the real story of a failed business entrepreneur. I will die with this blame that i made a big loss for this country by taking loans from the banks and Ima fraudster in the eyes of common public.

How IBBI Affected Companies- A Personal Experience.

A lot of companies that were examples of Make in India got perished and went into liquidation, and the expertise that the entrepreneurs had created went down the drain. It is a significant loss for the nation as a whole. Su-Kam is one example of the destruction done by this law as it went to the NCLT in April 2018 and Kotak Bank was ready to give me an investment in 2019. They committed 250 crore as an investment into the company, which was refused by the bankers sitting in various courts, and the su-kam case went on in different courts. The ultimate banks received eight crores in principal out of a total of 260 crores, and the company was sold for 50 crores.Out of 50 CR banks, while running the company, PWC already had loans from the supplier and made bills for running the company, which they couldn’t run for more than one year, and for legal expenses and salaries due to the employees, etc.

So the end result is that the company was valued by them when they entered after RP valued NCLT by two valuers at Rs 300 cr and the banks got only 8 cr, for which probably the legal cost incurred by them will be more than that. I’m sure. The entrepreneur destroyed suppliers and got nothing; employees lost their jobs, dealer distributors suffered losses financially and reputationally, and the customers didn’t get service for the product they bought. Then who got benefit out of this saga?

The Supreme Court has set aside the fraud declaration by the banks as a wrong step, and we have already lost reputation, health, and confidence because of the fraud declaration. CBI registered a case against me and harassed suppliers dealers distributors employees and me for more than two years, and CBI also spent resources investigating the case. They called at least 100 distributors and suppliers employees, and so many were connected to the company that they were harassed. So this one case is study material for the nation, showing that one small wrong can destroy so much for so many. How will i get my pride back that im not a fraudster and i had a role in building the nation by creating a company which gave direct employment to 3000 people and created technology patents, kept China away from the Inverter Industry, created exports against the China created RnD in the industry and created world class factories in India which are worth visiting with all the latest machinery and infrastructure which was sold at a meagre amount of 50 Cr. My one battery factory was built at the investment of 80 Cr. and all my factories brand and distribution network was sold in Corona times and money was deposited by the buyer after 2 years when the properties alone could be valued at 200 Cr. Is this the fair system and im asked to pay for the rest of the amount where the interest amount is continuing every day and my loan of 260 Cr has become 550 Cr and will continue to add every day.

Can the Supreme Court or any other court in India get me back my five years of fighting my battle rather than decorating myself for creating an industry where I developed an export of inverters rather than importing the inverters? I stopped China from entering India’s inverter industry. Now, in the last five years, all Chinese solar inverters are ruling the market, for which my R&D had already developed the technology, which has gone to waste.

I thought I had the right to ask these questions.