Choosing EOR services in China can bring you significant advantages, especially when your business entity is not yet established. Learn why Hongda’s EOR can be the right HR choice for you!
As you may know, building a whole HR management department is costly and time-consuming, and may not be necessary during startup phases. Instead, why don’t partner with an EOR provider in China, just like Hongda, who serves as the official employer, taking the daily compliance tasks on behalf of you, while you are still holding the power for direct management?
This is why you should consider EOR services when entering and doing business in China! Employer of Record (EOR) offers a valuable chance to save time, money, and effort as you map the workforce globally, minimizing the potential risk, especially in the areas where a legal entity of your business has not yet been built!
What is EOR and How Does it Work?
Imagine that you were eager to expand your overseas business in China with the help of the talent pool in this fast-growing country. And you managed to find an ideal candidate that matched your requirements. Unfortunately, due to some reasons, you could not sign a labor contract directly with him/her. This might be because your company had not been registered yet, or because you didn’t have enough energy and money to form your own HR team for daily management, or just simply because it was still not compulsory to set up a business entity in China. What would you do now? Would you just sit there and watch this perfectly matched candidate be scooped up by your competitor, and broke into tears for a loss of great opportunity? Wait a second! Now, someone will help you hire this talent, and he/she is still at your command. How does that sound?
This is what exactly an Employer of Record (EOR) provider can do for you! An Employer of Record (EOR) is a HR solution that help your company expand by hiring your ideal candidates and taking the responsibilities of daily HR tasks on your behalf, including payroll management, labor law compliance, benefit offerings, and many more. This can be the optimal choice for companies seeking to hire employees in a country or region where a local business entity is not yet established without the potential risks of violating the local laws and regulations.
Fig 1. EOR parties and relationship (how does EOR work)
How does an EOR process in China work, you may wonder. Typically, an EOR involves three parties: you as the client company, an EOR service provider, and the employees you wish to hire in this country.
A service agreement will be drafted specifying the number and salaries of the employees, the detailed service items, and the service fee for each worker. Then a direct employment relationship will be established between the EOR service provider and the employees. From this point, the administrative burden of managing the employees will be handled by the EOR provider. However, you will still be in charge of the daily operations of the employees. You can assign tasks to them, organize meetings with them, and evaluate their performance, holding the power for direct control of the employees. In other words, you are the actual ‘boss’ of the employees, where the EOR provider only acts as the HR department.
What Can Hongda’s EOR Services Bring to You?
Hongda, who has been providing high quality EOR services to our international clients who are seeking to hire qualified local candidates in China. By Implementing Hongda’s EOR services, you will obtain the benefits and advantages that make you outstand from your competitor!
- Rapid entry into a new market: By choosing Hongda’s EOR services, you will be able to hire employees in China where a legal entity of your overseas enterprise does not exist. This will allow your company to expand your business to this brand-new market without wasting time and resources to register a branch company, which may lead to the missing of valuable business opportunities.
- Simplified HR management: As Hongda carries all the responsibilities related to HR and administrative affairs, including salary, payroll, taxation, and work permit if required, you don’t need to worry about the extra stress brough by the HR management tasks, leaving you enough time and energy to focus on your core business functions.
- Reduced potential compliance risk: The labor laws in different countries and regions differ, leading to a complexity of compliance management requirements. Hongda, who is familiar with the regulations regarding taxation, labor management, and immigration law in China, can help you reduce the legal risks to your overseas entities.
- Enhanced flexibility and budget effectiveness: By implementing Hongda’s EOR, you can save a substantial amount of money by cutting the costs of company registration, HR management, and daily maintenance. You can surely build and scale your team as it grows and develops in China with an EOR service, and there is not necessary to spend every penny from the very beginning.
What Does Hongda’s EOR Service Include?
- Fast Employee Onboarding: Onboarding the candidates is the very beginning of the journey to business growth in China. With the detailed insights into the onboarding process and labor regulations across China, Hongda can help onboard your talent in just a few days with less paperwork from your side. Forget about the complex onboarding matters that seem endless - now you are already one step ahead!
- Efficient Payroll Management: Payroll management can be one of the most important thing a company should always keep in mind, as your employees are sometimes your most valuable assets. Hongda deeply understands the local tax laws and payroll regulations, making sure that your employees get fully paid on time, every time, without any additional trouble to you.
- Contract Management and Legal Services: Contracts regulate the responsibilities and rights of both your employees and you. Ensuring that all employment contracts meet the requirements of Chinese laws is crucial for the normal operation of your business in China, especially when it comes to labor disrupts. Our legal service team provides you with the peace of mind by taking care of the contract management, giving you more time to focus on driving your business forward.
- Comprehensive HR Solution: In typical cases, you need to find your ideal candidates before handing them over to EOR providers for daily management. What if you cannot find the right employees? With Hongda’s comprehensive HR services, including headhunting, Hongda can assist you in finding the right person for your position! Why carry the burden of recruiting ideal candidates yourself?
Let Hongda be Your Trusted EOR Partner!
Choosing EOR services can hugely benefit your operation in China, bringing significant advantages even without the presence of your business entity here in this country. With its 17 years of experience providing well-recognized EOR services to our international investors, Hongda can be your trusted HR partner for EOR in China. We believe that backed by Hongda’s commitment to your HR management, you can now step into China’s business arena with confidence.
If you want to know more about Hongda’s EOR services and how we can help your HR management for your operation and business in China, please feel free to book a free consultation with us!
