Legal Formalities for Starting HR consultancy

I receive lots of queries about legal formalities  required for starting HR Consultancy ? Actually, the answer  depends upon the type of  company you want to start. As i already wrote about it in my earlier post  How to start a HR Consultancy company, that there are four types of firms in India i.e.

  • Sole Proprietorship
  • Partnership
  • Private Limited
  • Public Limited

The easiest and most affordable way to start a HR consultancy is to start it as a Sole Proprietorship firm.  For starting a proprietorship firm, you will need few documents as well.

  1. Letter Head in the name of company
  2. Visiting card
  3. Company Rubber Stamp
  4. Your PAN Card
  5. Address Proof  (copy of telephone bill. Electricity bill)
  6. Rent Agreement if you are running from rented premises
  7. Service tax registration (optional)
  8. Current account in the name of your firm in any bank, we prefer IDBI

It is always advised to have a website designed for your company as it boosts trust about your company in the market. You can even go for SEO as it will bring new customers to you through internet. You can also go for service tax registration, but is optional.  Service tax registration is only needed when your annual revenue is more than 10 lakhs.  For service tax registration you can contact any CA  and he will happy do service tax registration for you for  anything between Rs. 2500- Rs.3500.

If you want to open partnership firm for your HR consultancy, you will still need all the things above but in addition to that you will be needing copy of partnership deed. In partnership firm all the partners will be the owners of the company.

If you want to open a Private Limited company, you will be needing 2 persons as board of directors and you will need one auditor. Along with this you will be needing a copy of memorandum of association.

If you are just starting,  I advise you to start with sole proprietorship or partnership firm depending on the situation. Then you can move to make it private limited if everything is fine.  Hope this will solved some of your queries.:) Leave a comment if you want to know anything regarding the legal formalities.


Happy New Year

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Wishing you lots of Happiness, Success, Love n Good health

How to Get Clients for Consultancy

This is a part one of multi part post about how to get clients for Manpower Consultancy. Any business is about making profits and profits only come when you have a huge list of good clients. I am writing the series of posts about how to get clients because i received a lot of requests from our valued readers. So,

How to get clients? The biggest and the most basic question in anybody’s mind.  Clients are most important part of any business and so everything revolves around it. The competition is so huge that the companies do anything for attracting a new client, they even do over committment .  Let me tell you its not that you just read any documentation or tutorials and you started making clients, for getting clients you will have to come up with your own idea.  I still remember when I opened my placement firm, that time I was really in need of few clients. But since i did not have big contacts that time, I started searching for contact details of companies on Net and start calling to the client. This is just a form of cold calling or better tele calling. But mark my words, telecalling is really effective but yes you willl have to do lots of calling everyday.

Benefits of Telecalling

  • Pitch for your service/products- You can directly pitch the concerned person about your products and services and ask them whether they need your services or are they interested in it. while doing calling you hardly get few seconds, it’s in your hands how to pitch client and convince to go for your services. Its a do or die situation :)
  • Awarenes -  With tele. calling you are also advertising your company products and services. whether you get client or not but tele calling has created a awareness about your company and services.

Tele calling is the first and basic way to get new clients.  You can search information’s from net and start doing tele calling for your products and services.  I will write next post about how to effectively do tele calling. Tele calling is an art where you should know how to convince prospective clients in just 1 minutes. That’s the key to successful tele calling.

Don’t forget to leave comments and shares your tips for effective tele calling….


The worse part of Hr consultancy

The success of any organization is counted by its financial progress. You have worked for day and night and at the end of the day you did not receive anything its totally worthless. For example when a child prepares for the exam putting his/her best effort but if his/her result is not good, hard work hardly matters . Hr consultancy is a great business and it has a very bright future but the worse part of Hr consultancy is problem of payment. This is a kind of business in which the invoice is raised only after providing service and this is the biggest drawback.  Most of the small companies do not value business ethics and they make every effort so that they can run away with paying any fee to the consultants. They should understand that there are lots of expenses associated with the consultants business, Expenses include :-

  1. Login fee (Naukri.Monster,Timesjob)
  2. Phone bills – (huge phone bills are associated with consultancy business).
  3. Internet connection.
  4. Labour fee and other expenses.

Touch wood there are lots of clients who do the payment on time. But many companies makes effort so that they can avoid  paying to consultants. And in such cases consultants cannot do much as the candidate is already hired. The only option for consultants is to take the client to the court. But its time consuming .  I have faced this problem many times when I started my business. It really made me broke and it was really difficult to decide which client to trust and whom to not.  I know how bad it feels when you do everything for the client and after wards clients denies payment. My full effort use to go in vain but finally we learned few things which should be taken care of which really helps in deciding whether a client is genuine or not :-

Things you should consider before working with a new client.

  • Ask from client to get your contract printed on their letter head and then send the signed copy of the contract.
  • If printing on letterhead is not possible then ask from the client for the acceptance mail for the contract.
  • If client is doing delay in payment never be rude to them as they should not get the chance to deny the payment straight away.
  • Always be in touch with them whether through calls or through mails.

I really benefited from above mentioned points hope it will help you too :)

Today there are lots of good people who understand consultant effort and do the payment  thanx to them :)


Is placement consultancy really worth hiring?

Bill Gates once said “It is the people with whom you work with, that makes a difference”. People are the power behind any company, it’s the employees of the companies which helps a company grow. This signifies the importance of hiring a good and right candidate for an organization.  Employees are the real assets of any company, that is why most of the bigger companies does everything to retain a good candidate.

Globalization has increased the demands for manpower. Selecting and Hiring a right employee has always been a challenge. It still is a challenge, that is why majority of companies hire  placement consultant for hiring the right candidate for their organization.

But the question is whether hiring a placement consultancy really a worth?

As a placement consultant myself, i definitely think its worth hiring a placement consultant. It is not that i am biased. I personally feel that hiring placement consultancy has many benefits.

  • Placement consultant takes off recruitment work load from the Overloaded company HR’s, (i know many people think that HR are just show pieces and does not do any work, but they are seriously wrong :) )
  • Placement consultant does the initial screening of the candidate thus saving the precious time of HR personnel,
  • Placement consultants have access to job portals like naukri, monster, timejobs thus ensuring that best quality candidates are available for the company,
  • Placement consultants co-ordinates with candidates from beginning to the end thus company HR’s can focus on other important work,
  • Placement consultants can perform reference check to assure the authenticity of the details mentioned by the candidates,
  • Placement consultants generally give 3 months of free replacement of candidates in case the candidate leaves the organization,

Thus i feel that the consultant take cares of all the main factors like searching,  pre screening, co-ordination, Quality, Authenticity and also saves times of the HR consultant. This makes me feel that HR consultant is really an asset for the company and can significantly help in the growth of the company.

This is my personal view but i would definetely like to know from the point of a company HR. I would appreciate if you can comment whether you really feel consultants is really worth for a company or not?

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Related Posts


Are placement consultants over priced?

Many of the top companies hire placement consultants for assisting their recruitment process. However, many mid sized companies are afraid of hiring them.

Why?

They think that Hr consultants are over charged. But is this really true ?

This is certainly not true. Actually it has always been problem with HR’s and HR consultants that people think that they do not do any significant work. Their role in organization development is always overlooked. In india, HR is still considered to be an area which is not given appropriate importance.

Let’s talk from the point of view of an HR consultant here. Generally mid size companies think that consultants charge a lot just for providing a candidate but they fail to understand the work and time involved in the entire process.

The process starts right after receiving the job description (JD) from the client. Placement consultant follow a time consuming rigorous process:-

  • Understanding: Consultants generally takes appropriate time to understand the requirement.
  • Searching: Once the requirement is understood searching for the right candidate begins. Well, searching is not an easy task task. Good Consultants generally have access to multiple accesses to job portals. So when you search for a candidates you generally get thousands of resumes and you have to manually go through each of them to shortlist right candidates. This is totally a manual process where human intelligence is needed and it is very time consuming.
  • Calling: Next step is to call the candidates to know whether he is looking for a change or not, and if he is then a telephonic pre-screening interview is done. This again is a time and money consuming process.
  • Presentation: Most companies requires information about the candidate in a particular format and so after a candidate qualifies pre screening process, the data of the candidates in prepared to be sent in the company.
  • Arranging Interviews: Once the candidates have been shortlisted by companies , we arrange their interview with the candidate.
  • Followups: Continuous co-ordination and followups continues until and unless a position is filled.
  • Cost savings: Many times companies like the candidate but because of salary expectation of the candidate, they are not able to hire them. Placement consultants helps the companies in this regard by negotiating with the candidates on companies behalf and this is really fruitful.

Needless to say that this entire process is done for on an average of 20 candidates for a particular position. Generally mid sized companies does not know this and they think that hiring placement consultant is very costly. They fail to understand the entire process and the quality offered by genuine consultants.

It is really needed that small and mid sized companies should thought about the role and importance of HR’s and Hr consultants. It is the people which makes a company grow and Placement consultants help to get the right people for your organization.

I think placement consultants are a major role in organization’s and i certainly don’t think that they are over priced?

What do you say??


Whats New At GS Job Point?

As everybody knows GS Job Point is just not another HR consultancy. Calling GS Job Point as just another HR consultancy will not be appropriate, of course we are HR consultancy firm but we are different. We are one of the best and most innovative HR Consultancy firm of India.

What makes us different is our friendly approach.  Unlike other Hr consultancy companies we think from company as well from candidates perspective. When we partner with any company, our main approach is  to bring down the costs of company and increases the productivity of the company. At the same time, we  work for the betterment of the candidates for their career growth.

I feel proud and can say proudly that we at GS Job Point do not work just for money but for the satisfaction and a social responsibility. I still remember the days when GS Job Popint provided free service for startup companies so that they can grow.  GS Job Point is not just about recruitment its about valued  relationship and partnership.

GS Job Point has always excelled in providing valued customer service because we feel the pains of our customers. We understand what clients need and what is the urgency of the situation. Its because of this we have launched membership plans for recruitment which is very very affordable for small to mid sized companies who wants to get quality candidates at a very affordable costs. We are the first to launch a membership plan for recruitment and we are very sure that it will definitely change the total recruitment scenario of recruitment’s in India. It will enable everybody to get quality candidates for their organizations.

More details about membership plans can be requested by sending a mail to riyan@gsjobpoint.com or just by commenting on this page.


10 Things you should know before appearing for the interview

Interview is the most important step for getting a job. I feel interview is more of a marketing strategy rather than just question answer round.  When a sales guy approaches  a prospect he tries to put all his punch in a first  meeting  to convert the prospect into a client. Same way i feel that the job seeker should think like marketing guy when he appears for the interview. He must know the art of selling himself to the company. A candidate must know how to sell his skills.

But most of the time,  candidate appears for the interview without proper preparation which results in bad impression along with the rejection of his candidature.

Interview is not something you should be afraid of, instead it’s a fun if you know how to tackle it. Few points you should keep in mind before appearing for the interview are:-

  1. Know about Job profile and responsibilities,
  2. Research about company and its services,
  3. Relax, smile and be polite,
  4. Listen carefully to the questions asked and Answer questions as directly as possible,
  5. Make Positive statements,
  6. Show examples if that fits the job and question,
  7. Ask yourself, why you are better than others for the job you are appearing for,
  8. Provide accurate information on your qualifications and interests
  9. Interview the interviewer (Ask Questions but be polite)
  10. Thank the interviewer when you leave and shake hands.

Hope these  tips will help you in your next interview. :)


Is Honesty really the Best Policy?

HR consultancy is not something which you can compare with other businesses. Most of the HR consultants do not charge anything upfront and this has become a trend in the market.

I  still remember the days when i just started the company and was looking for some clients. Searching for new clients is always the harder part and it has become more difficult because of the level of competition that is present in the market.  Since i was all alone that time, I did a lot of research on how to get new clients for the company.

I tried all sort of things i.e. cold callings, references, email marketing, ppc advertising, seo, and other stuffs. Finally, i succeeded in getting my first client in the form of a trading company. Company was very small they required an account executive but it was my first requirement and i have read that no job is a small job.  I was excited,  i mailed the proposal and eagerly waited for their acceptance. They accepted it and they made a commitment they will pay the money after the opening is filled by us.  I asked for signed copy of the contract and an approval mail from them.

Although they did not send us the signed copy of contract, but they assured me that they will definitely make the payment once the position is filled. Since my company was quite new that time, i did not stuck to the contract thing after all words have some value in business. I happily arranged the interview and lined up 11 candidates but only 4candidates appeared for the interview. On the clients request, i lined up 18 candidates for the next day. The client shorlisted 2 candidates and offered job to one of them.

That was my first closing and i was happy about that. But that was not all, next day a called a candidate and she said that she cannot join the organization as they are giving little hike and want her to work  for a week before the job confirmation. It was really a tragic situation as trial hiring is really not acceptable to experienced candidates. I  made a call to concerned person he said that he will not appoint anyone without observing, i suggested him that he want an experienced person in that case its difficult for any candidate to work on trial basis who is already working somewhere. but the client got firmed on that.

That was my first client and i had to close the position anyhow. I took it as a challenge and spoke to lot  of candidates about the position and finally got few candidates. I gave a call to the client to make suitable arrangements for the interview and guess what… he said that that they have already hired a candidate from there reference.

My whole effort and hard work went in vain. But As a good service provider I asked him to contact me for any future requirement.  After a week i received a email from that candidate and when i called the candidate i came to know that she had actually joined the trading company that also without without any trial.  I instantly gave a call to the client but i was surprised at the fact the client denied that he hired any of our candidates.  It was total lie but i could not do anything. I was still shocked how a owner of the company can speak such a plain lie. This incident really made me think is Honesty really the best policy these days.

what I learnt from my first experience is:-

  • Ask the client for sign contract, or acceptance mail of agreement,
  • If the client is new, you can always ask for small upfront payment and observe his reaction.
  • Do regular followup from the Candidates,
  • Be professional, never go on words or promises as they are mostly for negotiation.
  • Always ask client to sign the copy of contract on his/her company letterhead

Hope you will be able to learn something from my mistakes.

Keep Smiling :)


Resumes writing tips for international Jobs

I use to receive lots of call from the candidates that is there resume FORMAT is OK or which type of format is appreciated in fact some asked for resume writing tips for international jobs as well.

Professionals of all ages are seeking careers outside their home countries for a variety of professional and personal reasons: the need to recharge their batteries with a new challenge, the opportunity to have a position with more responsibility that encourages creativity and initiative (and typically leads to a promotion), the wish to expose their children to another culture and a second language, and the recognition that many of those at the top of the corporate ladder have leap-frogged ahead after a global work experience.

There are no hard and fast rules for putting together a resume for an international job. Best advice: do your homework. Find out what is appropriate vis-a-vis the corporate culture, the country culture, and the person making the hiring decision. The challenge is to incorporate several different cultures into one document.

Some General Advice

• The terms “resume” and “CV” (curriculum vitae) generally mean the same thing the world over: a document describing one’s educational and professional experience that is prepared for job-hunting purposes. A CV is typically a lengthier version of a resume, sometimes with numerous attachments. Note: The average length for a resume or CV is two pages—no matter the country, no matter the position. Never, ever try to “get around the rules” by shrinking your font size to an unreadable level or printing your resume on the front and back sides of one piece of paper. Never “stretch” your resume to two pages but also never sell yourself short by limiting yourself to one page.

• Different countries use different terms to describe the information that a resume should contain. For example, “cover letters” are called “letters of interest” in some countries and “motivation letters” in others. Photographs are not appropriate attachments to resumes in the U.S.; however, in many countries outside the U.S., it is standard procedure to attach a photo or have your photo printed on your resume.

• Education requirements differ country to country. In almost every case of “cross-border” job hunting, merely stating the title of your degree is not an adequate description. If you are a recent graduate and depending heavily upon your educational background to get a job, provide the reader with details about your studies and any related experience. The same advice applies to seasoned professionals who have participated in numerous training or continuing education courses: provide the reader with specific information on what you learned, the number of course hours, etc. Your university training becomes only “a line item” on your resume (i.e., no further details needed) once you have five or more years of professional experience.

• If you have specific training, education, or expertise, use industry-accepted terminology in your description: language and terms that any professional in your field would understand, no matter where in the world he or she lives.

• Pay particular attention to write your resume in the correct chronological order. Where there are no specific guidelines, the general preference is a reverse-chronological format.

• The level of computer technology and accessibility to the Internet varies widely country to country. Always be sure to email your resume as an attachment and in a widely accepted format, such as Word. And always send a hard copy via “snail mail” just to make sure it is received.

• Computer skills and language skills are always important, no matter the job, no matter the country. Take care to describe your skill levels in detail in both categories.

• If you are submitting your resume in English, find out if the recipient uses British English or American English. A reader who is unfamiliar with the variations just presumes that the resume contains typos. Most European companies use British English. Almost every computer today provides you with both options.

• Spellcheck, spellcheck, spellcheck, then get a human being to spellcheck your resume. Human resource professionals the world over assume that if you submit a sloppy, careless resume you will be a sloppy, careless worker. Take the time to double-check the correct title, gender, and spelling of the name of the recipient of your resume. Jan is a woman’s name in the U.S. and a man’s name in Europe.

• If you can, get someone who is a native speaker of the language in which your resume is written to review your document. One goal of your resume is to show your familiarity with the culture by using culturally-appropriate language. Anything else just highlights that you may not be a candidate who can “hit the ground running.”

• Be aware that stationery or paper sizes are different dimensions in different countries. When you are transmitting your resume via email, go to “Page Setup” on your computer and reformat your document to the recipient’s standard. Otherwise, when they print it out half of your material will be missing. The same is true for sending a fax. If at all possible, purchase stationary that has the same dimensions as the recipient’s and mail/fax your resume on that stationery.

Hope this will help you in achieving a good opportunity :)