Successful hiring strategy for SME’s in China – Go PEO!

In this article, we provide several successful hiring strategies (PEO) for SME’s in China:

  • Signing a PEO contract with an HR outsourcing company
  • Opting the PEO strategy in China

When doing business in an environment or setting that you are not familiar with, you and your company can run into many challenges when first starting in an international market. These challenges can include how to handle different cultures in a business setting, abide by unfamiliar country laws, and learning different employee benefit laws in your new operating country in a timely manner. Some of these challenges and risks can be eased by utilizing a professional employer organization, known for short as a PEO.Professional-Employment-Organization-in-Greater-China-PEO

A PEO is a company that partners with your business to provide human resource services and managerial operations for your company. This service is also known as employee leasing, talent dispatching, employer of record (EOR) etc. These services can include payroll services, benefits administration, staff advisory services, and legal advisory. This PEO relationship with your company is established by entering into a service agreement with the PEO service provider. This service agreement states that the PEO shares certain roles and responsibilities with your company that can include handling administrative tasks, providing HR support to your company and employees, and helping you with legal rules and regulations in your new country of operation. Offloading the cumbersome administrative operational responsibilities to an experienced PEO company allows your company to focus on its core business. This is very convenient, especially for small and medium enterprises (SME’s) in China. As a result, it can boost your company’s performance as it liberates your team off the time-consuming weighty tasks.

Signing a PEO contract with an HR outsourcing company can provide your company benefits such as payroll and mandatory benefits solutions. If your company has no legal entity in China or has not fully set up its wholly foreign-owned enterprise (or WFOE), then your company has no legal hiring ability in China. The only way to hire Chinese employees is by using a Chinese HR agency, like HROne, that has a license to do employee leasing services in China.

Opting the PEO strategy in China can be a great way to help your business stay focused on generating more profit and working towards achieving your company goals and mission. Even if you have a small HR team within your company, PEO can lessen the heavy burden of the cumbersome administrative HR tasks like dealing with payroll, monthly salary calculation, individual income tax management, annual reporting for individual income taxes, employee payroll data maintenance, corporate taxes, and employee benefits. As a result, your in-house HR staff will have more time to focus on other facets like employee engagement or training. Your company continues to have full control over the management of the employees and their performance.

HROne can be the perfect PEO solution for your business! HROne specializes in providing bilingual (English and Chinese) services to small or medium businesses in China and foreign companies in China. HROne’s payroll services can provide your company with the highest levels of data security, stability, and data processing reliability to ensure that your payroll is accurate and compliant with legal laws of your new country of operation. For companies not having a legal entity in China, HROne’s offers employee leasing/talent dispatching services which enable the foreign company to legally hire employees in China.

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