In this article, we provide the advantages of HR outsourcing in China.
What is employee outsourcing?
Many enterprises need or prefer to do business by focusing on their revenue-generating core activities and prefer not to dedicate the time and efforts of their resources for administrative HR tasks.
The smart trend is to hire your employees through a licensed HR outsourcing company/Employment agency, which directly signs an employment contract with the client’s employee and handles their monthly payroll, individual income tax (IIT), mandatory benefits/social security, and all the responsibilities that of a legal employer in the country.
What are the advantages of outsourcing my employees in China?
Hiring employees without a legal entity
For companies not having a legal entity in China, but want to hire employees for local operations, outsourcing companies providing PEO/Employment services can be a blessing. Representative Offices in China or companies not having a legal entity in China cannot directly hire local employees legally.
A common solution for these companies is to hire local employees through an HR outsourcing company, like HROne, that has the capacity to provide PEO/Employment services.
Hiring employees without local know-how of the HR policies
The HR outsourcing company handles the employee’s monthly payroll, individual income tax (IIT), mandatory benefits/social security, and even Visa for the client’s employee. The company handles all the responsibilities of a legal employer for your employees and is always updated about the latest HR policy changes in the industry.
Focus on business
Outsourcing the significant but cumbersome administrative HR operations tasks to an HR outsourcing company allows you to focus on your core business. As a result, it can boost your company’s performance as it liberates your team from time-consuming administrative tasks.
Better employee service
Start-up or small companies have a single HR person or very small HR team, which makes good employee service a challenge. Turnover of your HR person will influence your employee’s monthly payroll and statutory benefits processing.
It can be very difficult to offer your employees the same level of service and flexibility that an HR outsourcing company offers in processing HR transactions. An HR company has the capacity not only to answer your employee’s questions about the latest laws/benefits but also to provide expert guidance.
The service provider can legally hire the local employees on behalf of the foreign companies, and handling their monthly payroll, mandatory benefits which are required by the local government.
For a small business, outsourcing your employees is more effective than doing it all on your own. You can focus on the core objectives of your business, leaving the rest of the work to your employment service provider.
Startups can save money by cutting costs on the resources allocated to pay employees and maintain payroll, tax, and insurance documents. It is much cost-effective to outsource your employee instead of hiring an internal HR to handle the employment, monthly payroll, statutory benefits issues.
The HR service provider assists the foreign company in case of a labor dispute. It can give professional legal advisory for foreign companies and assist them with litigation and arbitration issues.
How HROne can be beneficial to your business
HROne’s offers Employee Leasing/Talent dispatching services for companies not having a legal entity in Mainland China.
HROne fulfills all essential responsibilities as that of a legal employer for the local employees in Mainland China. More importantly, HROne can provide bilingual service to its clients – both in English and Chinese.