HR Outsourcing In The Chinese Market

HR Consulting In China

At Edge, we look after the day-to-day operations of your company so that your employees can remain on track to achieve their targets
العملة
Chinese Yuan (CNY)
اللغة
Mandarin & English

أيام العمل
Monday to Friday

ساعات الدوام
40-48 hours/week

أنواع عقود الموظفين
Fixed & Indefinite Term Contracts

فترة الاختبار
1 to 6 months

دورة استحقاق الرواتب
شهريًا

ضريبة الأجور 0% -20%
39.50% - 41.20%

Hire and pay employees across the globe

  • Efficient Human Resources (HR) Management
  • Better work environment in the Office
  • Cost-effective alternative to building an in-house HR team

HR Outsourcing In The Chinese Market

The product and services market of China is highly cluttered. As a new company venturing into the Chinese market, it is essential to be strategic in your approach. A few critical aspects to consider include:

  • Conservatively using your company funds and resources
  • Focusing on growing your core business functions
  • Strategically recruiting with minimum operational resistance
  • Overcoming the local language barrier and gaining the trust of local employees and customers

Simply put, your focus should be building a strong core team that can carry out the responsibilities of running your company smoothly. Ideally, This team should include resident and non-resident Chinese employees so you can set your foot in the Chinese market and grow your business.

If you want to enter the market as seamlessly as possible, HR consulting firms like Edge can help.

The HR Consulting Partner You Can Trust

We believe “to work at one’s productive best, one must be at peace with himself and his environment.” So, at Edge, we look after the day-to-day operations of your company so that your employees can remain on track to achieve their targets. We ensure a suitable working environment with motivation and positivity filling the hearts of your employees.

As your trusted consulting firm, the onus is on us to affirm your employees remain happy and work for the company to the best of their abilities.

While most HR consulting firms in China manage just the core functions, at Edge, we go one step further to heighten your HR outsourcing experience.

Edge’s Core Offerings

  • We handle the recruiting process for your company. We will hire the most talented employees (both onshore and offshore) who understand and align with your business values. We are known for our impeccable talent management services in Shanghai, Beijing, and other important Chinese cities.
  • We integrate your company’s payroll operations with our HR management to streamline operations.
  • We address all employee concerns patiently and resolve any issues they may face.
  • Through proven strategies, we ensure high spirits and optimism among the employees at all times.
  • We help your employees explore their creative side and use it to further advance your company’s business operations and sales.
  • We take care of work leave records and employee salary deductions (insurance, tax requirements, etc.) and integrate them with the company payroll cycle.
  • We conduct employee-focused HR projects to elevate the functioning of employees (such as sales team competition, marketing lead contests, etc.)

The Edge Expertise

As an HR consulting firm in China and Hong Kong, we understand the local market well for various businesses. We are experienced in resolving the challenges faced by businesses in realizing their expansion.

Apart from this, we have a vast network of talents spread across major Chinese cities. They are all set to provide you with an impetus in initial operations. Once the distribution network for your product or service is planned in detail, our professionals can get you started with its implementation.

Core Values and Flexibility

We are a business-first HR consulting firm that keeps the needs of your business at the forefront. Our services offer unmatched flexibility to businesses of all sizes.

If you’re a small business with limited HR needs, don’t worry! We’ve got you covered with our cost-effective entry-level plan. Not only do we cover all your needs, but we also offer the flexibility of upscaling our services as you grow.

With more recruitments and internal departments in the future, we ensure that we are always at par with your existing needs and prospects.

Regulatory Compliance

As a firm in China, it is important to know and understand the local work laws and employment regulations set by the government. As your HR and business consulting partner, we ascertain that you remain compliant with government regulations and tax laws at all times so that you can focus solely on taking your business expertise to the next level.

Work Laws and Tax Regime in China

A quick look at China’s existing employment laws and tax requirements would help you understand the local scenario better.

Minimum Wages in China

The government authorities set the national minimum wage in China at the local level. Therefore, they vary a lot from one region to another. For example, the minimum wage requirement in the major cities and the Greater China Area is higher than in the countryside.

دورة استحقاق الرواتب

The standard duration of a payroll cycle in China depends on a company’s internal policies. Companies can choose from a weekly or monthly arrangement for payment to the employees. The payroll services are designed accordingly to disburse the net salaries at a fixed date every month (or a fixed day every week).

Work Leave For The Employees

The rules for work leave are quite stringent in China.

  • Annual Leave – Employees can take a maximum of 5 days of annual paid leave in a year after working in a company for more than a year. This allowance increases to 10 days after 10-20 years of service. Beyond 20 years, an employee can take up to 15 days of paid annual leave.
  • Sick leave – An employee can take sick leave in case of medical urgency. The pay rates can vary based on a company’s internal policies. However, the company can ask for a medical certificate from a registered practitioner for an extended period of sick leave (such as in cases of critical operative procedures).
  • Parental Leave – Although the Chinese government does not mandate parental leave as a determinant for employment contracts, female employees are eligible to receive 100% of their salary for the first 30 days of maternity leave (after serving in the same organization for more than a year). Following this, they can avail 75% of their salary for the next 60 days. There is also a provision for another 30 days of unpaid leave.

Once they return to work, they may take an hour-long break during the workday for the nursing needs of the child.

Most companies do not offer paternity leave if not included as an additional benefit in the employment contract.

Overtime Compensation For Chinese Employees

In China, Friday is treated as a rest day for everyone. So, any work done for the company on Friday automatically counts as overtime. The employees are compensated at 1.5 times their regular wage for the initial two hours and at 2 times their regular salary for each additional hour of work. The daily work cannot exceed 11 hours, and the upper limit for a workweek is 48 hours.

HR consulting firms in China must adhere to these guidelines and ensure that the monthly payroll distribution takes the additional hours into account.

Adequate compensation of employees goes a long way towards elevating their overall satisfaction. This creates a healthy working environment that benefits the company in the long run.

Rules Of Severance Pay And Contract Termination

If an employee is unfairly dismissed (for example, when the company chooses to reduce its workforce to cut costs or close its operations completely), they can obtain severance pay. They are entitled to 15 days’ salary if they’ve worked for 5 years and 30 days’ wage for more than five years.

The HR team proceeds with the settlement of severance pay if needed. They work together with the in-house payroll team or the payroll outsourcing provider.

The termination of an employment contract can be initiated either by the employer or the employee. Both parties must adhere to the stipulated rules of the notice period.

Notice Period For The Employer Notice Period For The Employee
● If the employee has worked for 6 months, a written notice of termination has to be presented 30 days in advance.

● For a period of work between 6 months and 1 year, the company is obliged to do the same 45 days before termination.

● If they’ve worked for less than 6 months, employees need to serve the company for a notice period of 30 days.
● For senior employees (having worked for more than 1 year at the same company), the notice should be provided 60 days in advance. ● In case they’ve worked for more than 6 months at the same company, employees need to serve a notice period of 45 days.

The HR Consulting Process at Edge

Our professional team becomes an extension of your core management team. We take responsibility for all your operational needs using a simple model.

  • First, we conduct an orientation session where your employees and our HR team meet and understand each other. We ensure that each new recruitment is up-to-date with the core business vision and insights.
  • We establish contact channels with each employee and various teams working in your company.
  • We assign a team member for all needs from a particular department (e.g., sales team), such as leave, insurance, taxes, feedback, or suggestions. They convey the concerns to us (if escalation of the matter is needed) or resolve them according to our pre-defined HR protocols.
  • Additionally, we also offer payroll management services integrated with our HR functions. This makes efficient and compliant payroll easier to achieve.

More Services Available in China

Business Process Outsourcing China
Business Process Outsourcing China
Payroll Outsourcing in China
Payroll Outsourcing in China
Employer of Record in China
Employer of Record in China

Hire the right way

Let our team handle all of the compliance and payroll on your behalf

Frequently Asked Questions

How much does it cost to outsource HR services in China?

The cost to outsource HR management is much lower than building an in-house HR team. Both serve the same purpose, while outsourcing brings cost savings to the table.

The exact cost for HR services depends upon factors like:

  • The spectrum of services opted by a company. If talent management, recruitment, integrated payroll, and complaint resolution are all included in outsourced HR, the costs add up accordingly. Partial HR management for employee teams alone does not cost much.
  • The scale of operations. The more employees working in an organization, the greater the processing power required to run the operations smoothly. This would lead to higher costs of HR management.
  • The local regulations in a region. The local authorities’ tax requirements and other regulations guide the prices of the services.
Should a company outsource payroll and HR to the same consultant?

Unless payroll services are handled by an in-house team, it is advisable to outsource payroll management to the HR consulting firm. It becomes easier for an outsourcing company like Edge to coordinate the functioning of both departments. Chances of payroll errors and HR mismanagement also come down drastically.

Which cities in China have a good market for business expansion and a better talent pool of employees?

Cities like Shanghai, Beijing, Wuhan, Chengdu, Shenzhen, and Guangzhou are among the biggest markets for businesses looking to enter the Chinese market. They also have a pool of skilled potential employees seeking job opportunities. A company should consider venturing into one of these cities first and expand to the rest as they grow.