Properly hiring an employee in Bangladesh is an intricate and careful process that helps companies grow with the right talent onboarded. From drafting the job description, advertising the vacancy at the right platforms, to selecting the best candidates and interviewing them for the selection of the most suitable hire, the task is not easy.
Employers have to comply with labor laws and face possible challenges that stop them from getting the best ROI from the hiring. However, there is more than one option for hiring and making it effective. And also, there are human resource software solutions that can help expedite the process. A proper hiring model and structured steps, combined with automated HR software, simplify the recruitment process and help bring in top talent.
Why Should You Hire Employees in Bangladesh?
Companies of all sizes need competent employees to run their businesses successfully. Employers in Bangladesh need to fill roles and positions with the right people to ensure the best ROI.
Also, training existing employees for certain roles or skills may not always be an effective option. Rather, hiring resources skilled in particular work offers better chances of success and desired outcomes.
How to Hire Employees in Bangladesh: Step by Step Process
As per BIDA (Bangladesh Investment Development Authority), approximately 2.2 million graduates enter the workforce each year in Bangladesh. An impressive number, but you need the right type of hiring process to accommodate them. Though the hiring process varies company to company, industry to industry, a standard process is as follows:
Step 1: Define Role and Salary
First thing you need to do is lay down the role requirements and how much you are willing to pay for the role. Drafting an appropriate job description (JD) with the right salary helps to attract the best candidates. If needed, do a salary survey or job market research with the help of HR consulting firms or with the use of different job portals.
Step 2: Advertise the Position
Once you have finalized the job duties, qualifications, remuneration, and benefits package, create the job ad. It’s best to advertise the position vacancy on popular job platforms in Bangladesh like online job portals, job pages of newspapers. You can also place the ads on the well-known professional networking platform like LinkedIn. Plus, there are groups on social media channels like Facebook that let you advertise job vacancies, free of cost.
Step 3: Shortlist and Screen Candidates
After the applications come in, sort the CVs and shortlist the most suitable applicants. Whether you use an applicant tracking system (ATS) or collect CVs from popular job portals, you need to sort out the most suitable candidates from the pool of applicants. It is best to use an ATS so that you can save time.
Step 4: Conduct Interviews
The next thing you will do is arrange interviews for the shortlisted candidates. You can email them, call them over the phone, or even message them via text (WhatsApp or SMS). It’s best to follow up on the messages and emails, in case the candidates miss them.
Your interviews can be any number of times before the final selection. Though the best practice is to have an initial screening/preliminary interview. And then have a second round interview where you discuss in more detail, along with the functional HoD and do the salary negotiation. You should try to have in-person interviews at all stages. However, you may conduct the preliminary interview virtually and have the final interview in-person.
Step 5: Background Checks and References
Background checks help you learn about a potential hire’s previous standing with their current or past employer. A candidate might pass the hiring stages well. The best place to reach out for a background check is the candidate’s current company’s HR team or his direct supervisor.
Step 6: Issue Offer and Employment Contract
Most employers in Bangladesh provide an offer letter, mentioning the probationary period salary, job location, position, and other benefits. If the potential hire accepts the offer within a stipulated time, he/she is offered a full-time employment letter with all terms and conditions of the employment mentioned.
Some employers directly offer a contract letter, with a tenure of 1+ years, extendable or renewable upon negotiation down the line (when the contract is soon to be up).
Step 7: Register With Labor Office / Tax Dept if Required
After hiring, you may need to register the new employee with certain government bodies or update your company’s registrations. If this is your company’s first hire in Bangladesh, ensure your business is registered with the proper authorities like the Registrar of Joint Stock Companies, and obtain a Trade License and tax identification.
Step 8: Onboard the Employee Professionally
Once you have hired the new employee, you must onboard them accordingly, starting with collecting the required documents and a proper orientation program. You should also have the equipment, devices, and stationery that the new hire will work with set up and ready. Help him get to know his team members and ensure he feels comfortable from day one.
What Hiring Models Can Employers Use in Bangladesh?
Depending on the company situation, strategic requirements, objectives, and budget, employers can utilize different types of hiring models. In Bangladesh, three common types exist.
Set Up a Local Entity (For long-term presence)
The most preferred hiring model involves setting up a business and hiring full-time employees in accordance with local labor laws and the RJSC. With this, the employer gets full control of the company and the workforce. But the employer must comply with the laws of the land.
Use an Employer of Record (EOR)
If an employer wants to avoid the processes and complexities of hiring, they can lease the hiring duties to a third party. The EOR is then the legal employer of the hires, but the employer can instruct and delegate work to the employees.
Hire Freelancers or Contractors
If an employer completely wants to avoid hiring full-time or permanent staff, they can hire freelancers or contractors. This helps the employers waive any kind of employment benefits or fringe benefits to the workers. Just pay per work or a fixed, consolidated salary for a certain time.
What Legal Requirements Should You Know Before Hiring in Bangladesh?
Like most countries in the world, Bangladesh has labor and employment regulations. As an employer in Bangladesh, you must abide by these rules.
What Are the Key Employment Laws in Bangladesh?
The main law governing employment is the Bangladesh Labour Act 2006 (amended in 2013), along with the Labour Rules 2015. This comprehensive labor law covers employment conditions, working hours, leave, wages, termination, health and safety, and more.
What Are the Minimum Wage and Salary Guidelines in Bangladesh?
The Minimum Wage and Salary guidelines are set by industry and updated from time to time by the government’s Minimum Wage Board. Different sectors like food, garments, leather, pharmaceuticals, etc., have their own prescribed minimum pay levels.
For example, the Ready-Made Garment (RMG) industry has a minimum wage of BDT 12,500 currently, reformed in late 2023. Bangladesh Labor Law also requires that salaries be paid within 7 working days of the following month.
Work Permits for Foreign Employees in Bangladesh
Foreigners or expatriates working in Bangladesh must have a valid work permit and work visa. Generally, an expatriate employee will enter on an E-visa (employment visa) or similar, and then the employer must obtain a work permit from the relevant authority.
There are three main authorities that issue work permits in Bangladesh. BIDA (Bangladesh Investment Development Authority) for most private sector industries; BEPZA (Bangladesh Export Processing Zones Authority) for employers in EPZs, and NGO Affairs Bureau (NGOAB) for NGOs.
How to Onboard and Retain Employees?
Hiring an employee is just the beginning of the whole process. You need to properly onboard them, make them accustomed to the company culture, and retain them with best practices.
- First Day Setup: When the new hire joins on the first day, besides orienting them, make sure they have their IT onboarding complete. This may include providing the necessary computers or devices to perform their work. An employer must also set up their official emails, give access to any allotted software, requisition their ID cards and visiting cards, help them set up their bank salary accounts, confirm their payroll, and most importantly, ensure that a proper employment agreement is in place outlining job responsibilities, compensation, benefits, and termination clauses.
- Employee Benefits and Bonuses: Once the new employees start working with you, you must ensure they get all the entitled employee benefits. These could be bonuses (for both Eid festivals), leaves, insurance, and other allowances.
- Probation Periods and Evaluations: Probation periods in Bangladesh range from 3 to 6 months, depending on the employment type and employer. Here, the HR officials, along with the manager, must monitor the employee’s progress. And evaluate them properly. If they perform as expected, the employee must be confirmed as a full-time employee. Permanent position. If not, an extension can be given for 3 months, or let them go via written notice.
- Payroll and Tax Filing: You must also make sure the employees are getting their salaries on time. And their tax filing is complete. Using an automated payroll software can simplify these processes here and help retain employees.
What Are the Most Common Challenges in Hiring Employees in Bangladesh?
HR must ensure the ROI of hiring an employee is positive and worthwhile. Nothing can be more harmful to the team and company than a “bad hire”.
Skill Gaps and Mismatch: Bangladesh produces many graduates, but employers sometimes find that specific job-ready skills are lacking. Many young graduates have theoretical knowledge but need practical upskilling.
High Turnover in Competitive Sector: In industries like banking and MNCs, employees tend to leave whenever they get a better offer with higher pay packages.
Cultural and Communication Gap: A newly hired worker might not easily integrate with the company. They may also lack the communication style shared by other existing or senior employees. This cultural mismatch might cause misunderstandings and reduced collaboration.
Compliance and Bureaucracy: Regulations and practices tend to change quite often in Bangladesh and without much notice. Thus, complying with the recruitment and employment rules can be challenging.
Employee Expectations: A big hurdle in successful hiring is the failure to meet the candidates’ expectations. Usually, the more skilled and capable a potential hire, the more demanding they will be. So, many times, a final selection might not accept your offer, forcing you to settle for someone less skilled or potent.
How Can HR Software Simplify Employee Onboarding in Bangladesh?
Using advanced HR software can simplify & digitize hiring and onboarding processes in Bangladesh. New hires can fill out their details and submit documents online. You can then collect all needed info (NID number, TIN, bank account, etc.) in a secure portal.
Automated HR software like PiHR also provides checklists and reminders during the hiring process. This ensures you don’t miss steps like ID card issuance, device allocation, or welcome training. Plus, PiHR offers features like digital notice boards and announcements, which can immediately connect a newcomer to company communications and culture making onboarding smoother.
Final Words
Hiring an employee takes careful planning and assessment of the process. Or, a failed recruit could be detrimental to the team’s progress and objectives. You must properly implement the steps mentioned above, complying with local laws and best practices. Also, a proper onboarding following the hiring is crucial for a successful tenure of the hire with the company.
HR solutions like PiHR make the hiring process more efficient, organize the workflows, save time and reduce costs. So, making the best use of such HR software as per your needs is the best way to go for hiring employees in Bangladesh.
