PeopleStrong expects union budget 2016 to focus on development via the jobs route

PeopleStrong HR Services Pvt. Ltd., a leading platform-based mpHRO (Multi-process HR Outsourcing), recruitment process outsourcing specialist, and HR technology company, has following expectations and recommendations from the government in the upcoming union budget 2016.

Pankaj Bansal, Co-Founder and CEO, PeopleStrong highlights
the key aspects of improvements required in the human resource (HR) aspects including creation of jobs, skills development, career centers, labour laws and ease of doing business, among others for growth and development in India.

With various initiatives led by government like Make in India, Digital India, Skill India, Startup India, and Stand Up India which are designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing infrastructure.

While global economy is still not showing signs of recovery, Indian economy is poised with positive growth momentum and optimism. A positive policy environment of attracting investment and job creation would go a long way in ensuring that the growth targets are met.

Admist the economy which is showing signs of recovery, listed below are the various aspects from human resource industry in the upcoming union budget 2016.

Incentivizing job creation
Addressing the nation on the occasion of the 69th Independence Day, prime minister, Narendra Modi, said there would now be an attempt at linking job creation with new investments. Such schemes are under preparation, according to which proposed schemes would now impose the obligation of creating fresh jobs for every clearance given to investments whether in the public or private sector. This has been important initiatives of thegovernment and gave hope in terms of jobs as well as development. Government should now back it up with increased reforms to translate the sentiments to numbers.

Ease of doing business
One of the major attempts of ‘Make in India’ campaign is to attract foreign investments in the country.

While the government has struck the right notes in reaching out to Investors across nations, it is time to keep up the promises made.


India ranks 142 amongst 189 economies, in World Bank’s Ease of Doing Business Index.

Some factors that rank India at this level are complex procedures, multiple regulatory approvals spanning several months, and stringent rules on environmental clearances, and exit schemes, etc.

The government needs to address the major issue of complex procedures and approvals by providing single-window clearances of projects and fixing due dates for closing each step of the different processes.

Another step that the government should take is reduce the complexities and vagueness in the tax framework as evident in the recent transfer pricing case. 

What every corporate player needs is simplicity and predictability in laws, so that every time they do not go to court of law to decide what is correct and what is wrong.

Skill Development and Career Centers
The government is now giving increased focus on career counselling as a key activity for our aspiring youth to pursue the right career choice so that they join the workforce with better skills for enhancing growth and development.

Career Centers shall connect local youth and other job-seekers with all possible job opportunities in a transparent and effective manner through the use of technology as well as through counseling and training.

While the state-of-the-art technology driven National Career Service Portal willin a sustained manner, provide information about available job opportunities and resources for Career Centers to function effectively. The Career Centers would be the pivotal outreach and counseling interface of the National Career Service for teeming millions of aspiring youth from rural, semi urban areas as well as from disadvantaged sections of the society.

These Centre are great scheme and government should come up with booster funds for these centers to make them performance driven and effective.

Labour reforms:
India has a complex labour law structure with approximately 44 central and 100 state laws that are expected to regulate the labour landscape.

Being archaic and having loop holes, many of these laws are biased towards the working population. In order to make “Make in India” a success, the government needs to look into it.

For example, the Industrial Dispute Act 1947 has very stringent guidelines on lay-offs, retrenchments and closure. This often stops the employers to grow their manufacturing operations in India beyond a certain limit.

The benefit regime established often locks almost half of the salary of a low wage worker, making self-employment more attractive for the workers.

It would be worthwhile to revisit these guidelines and create a balance between industry and worker welfare in the labor laws.

It would be great if the complex framework of central and state legislations is reduced to an integrated legal framework with lesser but effective laws with no redundancy, besides clearly defining the ownership of central and state governments.

As the Indian geography and labour market conditions are diverse across different states, their involvement in creating this framework is a must. We expect amendments to the Factories Act (exempting factories with less than 40 employees from 14 labour laws, including easier shutdown).

About PeopleStrong HR Services Pvt. Ltd:

Established in 2005, PeopleStrong HR Services Pvt. Ltd. is a leading platform-based mpHRO (Multi-process HR Outsourcing), recruitment process outsourcing specialist, and HR technology company, headquartered out of Gurgaon in India. With the mission of transforming HR experience, PeopleStrong enables business leaders and CEO's in transforming their people agenda and partners with them in their prime objective of creating happy organizations.

Having implemented some of the largest HR Service Centers in Asia Pacific, PeopleStrong delivers employee services across regions and time zones for more than 300,000 employees and has hired more than 40,000 employees through a unique technology interface coupled with high-end decision making tools for people data. The key offerings of PeopleStrong include HR shared services, recruitment process outsourcing (RPO), payroll & compliance management, and HR technology.
PeopleStrong Alt, the cloud-based HR technology solution, powered by big data, is one of its kind solution that covers entire spectrum of HR processes like recruitment, employee life cycle management (all activities from hire to retire like on boarding, leave & attendance management, performance management, exit management), and HR analytics.


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