The Executive Recruiters Association (ERA) is a non-profit Chamber of Commerce representing Executive Recruitment Consulting firms. Executive Recruitment consulting is a specialized profession that helps client organizations identify, evaluate, and recruit executives at various levels. Executive Recruitment consultants work only on behalf of organizations and never on behalf of individuals seeking employment.
ERA strongly urges the Government to favorably consider the following points:
1. The Recruitment industry helps to generate among the highest net FOREX inflow on a continuing sustainable basis. It was this invisible FOREX earning, which helped the country in 1991, when we had a FOREX crisis and the country had to pledge its gold.
2. The seeds for the growth of the Software Exports Industry were provided by "onsite body-shopping" for Software development, which helped customers recognize the strengths of the Indian software professional. The recruitment Companies have contributed significantly in this endeavor. ERA will help build the Global Brand & Recognition for all Indian knowledge workers irrespective of profession - Engineers, Accountants, Medical, Marketing, Human Resources, Media, etc.
ERA can be the catalyst to replicate the software exports success to other professions for outsourced knowledge / R&D centers and create employment, significant exports and FOREX earnings.
3. Export earnings for the recruitment industry must also be covered under 80HHE of Income Tax Act. The recruitment industry must be treated on par with the software & IT Enabled services, since in each of the above case, export earnings are being created through deployment of knowledge workers.
4. The labor laws for contract employment need to be liberalized to enable increased employment. The largest private employer in US is not General Motors, Microsoft or any of the other manufacturing company but a Temporary Employment company, Manpower Inc., employing around 2 million temporary workers.
India's unemployment can be reduced by allowing liberalized contract / temporary employment for knowledge workers.
5. The SEBI Committee on Corporate Governance has made a mandatory recommendation about appointment of Independent Directors. It states “The Committee is of the view that the non-executive directors, help bring an independent judgement to bear on board's deliberations especially on issues of strategy, performance, management of conflicts and standards of conduct. The Committee therefore lays emphasis on the caliber of the non-executive directors, especially of the independent directors.” With a view to ensure genuine transparency, protection of shareholder interests and to help listed companies locate professionally acclaimed independent directors for their board,
the use of a Professional Executive Recruitment Consultancy organization should be made mandatory for the selection of Independent Directors.
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