Have You Been Making These 5 Hiring Mistakes in Indonesia?

Have You Been Making These 5 Hiring Mistakes in Indonesia?

  • InCorp Editorial Team
  • 9 July 2020
  • 4 minute reading time

Hiring in Indonesia can be complex and exhausting. When you are assessing the applicants, they are also evaluating you and your company.

Successful hiring is more complicated than just choosing the right people. It is also about attracting and retaining the best talents.

Here are the 5 hiring mistakes that are commonly found in Indonesia and how you can resolve them.

5 Hiring Mistakes in Indonesia

hiring mistakes in indonesia1. Not Attracting the Right Talent

Obtaining the right talent is very important for every business but it is also often very challenging. Especially when you don’t have the resources.

Furthermore, if your company doesn’t reflect the right image or describe the job scopes accurately, candidates will not come to you.

Therefore, you may consider using recruitment outsourcing to enhance the effectiveness of your hiring in Indonesia.

A recruitment outsourcing company will make use of the updated recruiting technology to help you write effective job descriptions.

An applicant tracking system is also available to help organise your potential hires’ information to assist you and recruiters in evaluation.

2. Making the Recruitment Process Longer than Necessary

On average, human resource personnel wastes about 14 hours per week on manual tasks. 14 hours is a huge amount of time for both employers and employees.

Time is precious and applicants can’t afford to wait for a long process. The candidates may have already joined another company when you are ready to interview them.

Using recruitment outsourcing can help you prevent this kind of issue. A recruitment outsourcing expert will make the recruitment process much shorter with process automation. Interview scheduling, appointment confirmation, and background check are all part of the process automation.

3. Employing Foreigners Without Valid Work Permits

You will break the Indonesian Immigration Law if you hire foreign employees without a work permit. The fine of not having a work permit is as high as USD34,000 (IDR 500 million) and at least 5 years imprisonment.

Need A Guide How to Obtain Work Permit in Indonesia? Learn More Here

The solution is to apply for a work and stay visa, or KITAS/ITAS work visa through a reputable visa consultant.

A KITAS/ITAS work visa valid for 6 months or a maximum of 12 months. Under the employer’s sponsorship, renewal is possible and foreigners holding KITAS/ITAS can work and stay in Indonesia for 5 years.

4. Ignoring the Importance of Checking References

Sometimes a candidate may not be who they say they are on a resume. When you think that someone is too good to be true, you are probably right.

Therefore, not checking references of candidates is the major hiring mistakes that many employers make. Some deceitful candidates may cheat on the paper, and some may only do good academically but not practically.

So starting your recruitment process by doing an employee background check is already half the battle. Not just randomly, but every single one of them. This allows you to make the best choice possible.

5. Hiring Employees Without Contracts

Employment contracts are key to the success of hiring in Indonesia.

However, a lot of organisations still hire their employees without any form of a written contract.

Even a verbal contract can be detrimental to your business in the future, if not now. If you don’t want any future legal complication or dispute, an employment contract is a must.

Be sure to consult an HR specialist or engage in a recruitment outsourcing expert to make sure that you have every criterion included in the contract.

How Cekindo can Assist

As a business solution provider for small to medium businesses, as well as large corporations, Cekindo provides top-notch outsourcing services of recruitment and hiring in Indonesia.

We are a global leader in talent acquisition and management solutions to help you maximise your organizational performance and deliver great business outcomes.

By blending our recruitment skills and industry expertise, Cekindo is ready to help you create a dynamic talent supply chain in Indonesia.

Regain your focus in your business today. Fill in the form below.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

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According to the Indonesia’s Manpower Law employers can hire the Indonesian talents either under a temporary or a permanent contract.

  • Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates
  • Increase the competence of the workers by giving or encouraging job training
  • Follow the procedures of termination (Terminating an employee in Indonesia can be a long, tedious, and expensive process.)
  • Observe the working hours, holidays, and overtime regulations
  • Give mandatory employee benefits including social security and health insurance
  • Withhold only the right amount of income tax on behalf of the employees
  • Follow the wages and other benefits outlined by the law
  • Process the work permits for foreign employees

As a leading recruitment outsourcing provider in Indonesia, InCorp offers comprehensive services. We will conduct an in-depth background check on candidates to verify references and qualifications.

Cost reduction, hiring time reduction, hire quality are among the most noteworthy benefits your company can enjoy.