It is very common for foreign companies and organisations in China to outsource their human resources management to professional third-party agencies. In fact, China has complex labour regulations and a fast-evolving regulatory environment, which can often baffle foreign companies in the market. For instance, employers are required to file their staff employment and dismissal with relevant government bureaus, withhold and pay social benefits, as well as individual income tax on behalf of their employees.
Outsourcing employee recruitment management means that SMEs can reduce costs, as they will not need to hire an in-house HR team. In some cases, such as for Representative Offices, this is the only possible way to hire and manage human resources in China. The services provided by professional HR firms in China commonly include:
- HR outsourcing/dispatching Chinese staff to representative offices
- Personnel file transfer & management
- Social insurance & housing fund management
- Medical services & local employee welfare solutions
- Payroll & taxation services for local employees
- Recruiting services
- Training & development
- Chinese labour law consultancy
