Who does it and how:
An SMB with 20–200 employees has no dedicated recruiter. Hiring is done by the founder, a co-founder, or a single HR person who also handles payroll, compliance, and office admin. In companies below 50 people, nobody's full-time job is recruitment.
Blue collar and entry-level (security guards, delivery staff, factory workers, data entry operators):
- Staffing brokers and labour contractors operating under the Contract Labour Act. The broker maintains a roster; the company calls when it needs workers.
- WhatsApp groups managed by a supervisor or HR person. Someone screenshots a roster, forwards a number, and calls directly.
- The broker is paid by the candidate's first salary or by the employer at a flat monthly rate per headcount. The candidate often pays nothing upfront — subsidised by the candidate's desperation.
- Time to fill: 1–7 days for replacement workers; 2–4 weeks for new role types.
- Naukri.com: companies post jobs, receive 50–500 resumes per posting, and spend 3–6 hours manually filtering. Naukri's algorithm surfaces profiles of active job-seekers who update regularly — meaning the same candidates appear across every competing posting.
- Indeed India: used but less dominant for Indian SMBs; more relevant for fresher and walk-in roles.
- LinkedIn: limited reach for SMB hiring in India outside metro tech roles; candidates with 3–10 years experience are present but rarely active job-seekers.
- Personal network and employee referrals: the founder calls known contacts, asks for references. Works once or twice, then hits the wall of network exhaustion.
- Staffing brokers and local recruitment consultants: typically charge 8–15% of the candidate's annual salary, payable on joining. Work well for mid-senior roles (₹10 LPA+) but are economically unattractive for SMBs filling roles at ₹3–6 LPA, where the fee of ₹25,000–72,000 feels disproportionate to the role's value.
- Reference checks: rarely done systematically. The employer asks two names from the candidate and calls them informally.
- Founder time: a 50-person company with 6–8 annual hires loses an estimated 300–500 person-hours per year to recruitment — time that ships no product and serves no customer.
- Bad hire cost: a wrong hire at ₹3–6 LPA in India costs ₹2–5 lakhs in training, ramp-up salary, and eventual separation — and typically takes 6–18 months to correct.
- Staffing broker fee: paying 8–15% of annual salary on every hire, every year, instead of building an amortised cost structure.
- Sourcing budget waste: Naukri.com subscription at ₹10,000–25,000 per month for a small company, generating low-quality volume.
- Offer rejection: SMBs make offers that candidates reject because the process took too long or the employer couldn't move fast enough. Speed is a competitive advantage no SMB currently has.