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Headhunt and Recruitment Process Outsourcing

Doing business is just about gathering the right people to do the right things. Whether you want full-time employees or temporary help, you should look beyond the typical employment agency and partner with those who can always make you stay a step ahead in the race for talent, just like Hongda.

Human Resource – Your Most Valuable Asset for Business Success

When it comes to your company’s most valuable asset, what will you think the answer will be? The answer is the tens, hundred, or even thousands of employees that keep your company and business running. They are the actual managers and creators of all your other assets such as your company’s infrastructure and intellectual properties.

Employees are the base of a strong and long-running company. Motivated staffs can make a significant difference to your business operation and perform efforts to achieve company’s goals. Skilled people can lead the innovation with their experience and expertise to always you outstand from other competitors.

As the manager of your company’s human resource, you may face a huge difficulty: how to find the most suitable candidate for your company. Let’s see how partnering with Hongda can benefit your employee hiring!

Why Multinational Companies Need Human Resource Outsourcing Services Nowadays

Human Resource Outsourcing (HRO) refers to the practice where businesses delegate part or all of their HR management tasks to specialized outsourcing firms. This approach is adopted to enhance efficiency, reduce costs, mitigate risks, and focus on core business activities. It also allows for the unified management and coordination of employees in various countries, aligning with your company’s global strategic objectives.

Foreign enterprises investing in China face several HR management challenges, including:

  • Legal and Regulatory Differences: The labor laws, social insurance, and tax regulations in China can significantly differ from those in the home countries of these enterprises. It is essential for foreign businesses to understand and comply with Chinese regulations to avoid legal disputes.
  • Cultural Differences: The cultural disparities between China and the home countries of these enterprises, such as values, communication styles, leadership approaches, and work habits, require foreign businesses to respect and adapt to Chinese culture. This involves developing cross-cultural communication and collaboration skills.
  • Talent Market Competition: The Chinese talent market is highly dynamic. Foreign enterprises must compete with local and other international companies for top talent. To attract and retain skilled employees, foreign businesses need to develop competitive compensation, career development, and employee care policies.
  • Reducing Management Costs: Outsourcing firms typically provide services through HR specialists, experienced HR managers, and legal advisors. This arrangement allows enterprises to save on the costs and management of employing such staff. Moreover, outsourcing solutions can be tailored to the needs and budgets of overseas companies, helping them save on human and financial resources.



The Differences Between EOR, PEO, and Headhunt

  Employer of Record (EOR) Professional Employer Outsourcing (PEO) Headhunt
Main Purpose Providing local employment and management services for companies without a registered entity in China. The outsourcing of the entire human resource department. Providing comprehensive HR services, including payroll, benefits, and compliance, for an entire workforce. Finding and recruiting talents for high-end or key positions for the company.
Employment Relationship Employer of record is the legal employer responsible for compliance and payroll. Co-employment relationship, where the PEO and client company share certain employment responsibilities. Typically focused on permanent placements.
Cost Structure 1.    Service fee: 10% of all wages and social security expenses to be paid to employees.
2.    Compensation management fee: RMB 300/person/month.
3.    Deposit: 2 months' salary (to be used as a potential compensation for any economic damages).
Monthly Management Fee:  RMB 300/person/month. One-time fee (usually around 20% of the employee’s annual salary) based on successful recruitment.
Relationship with Employees Nominal employer has a direct employment relationship with the employee, but the hiring company holds management rights. Direct employment relationship between the hiring company and the employees. No direct employment relationship; the company signs contracts with employees.
Client Control Client retains operational control, while EOR handles administrative and legal aspects. PEO and client share control, but PEO manages HR functions, payroll, and benefits. Client company has direct control over the recruitment process and the hired candidate.
Contents of Services Salary payment, individual income tax declaration, social insurance withholding, legal compliance, and more will be included in this service. Including compliance with onboarding and offboarding procedures, including personnel salary management, recordkeeping, social insurance compliance, compensation solutions, and benefits management. If the intended employee does not pass the probationary period, a new candidate will be provided.
Typical Use Cases Useful for companies expanding into new markets or dealing with international employment. Suitable for companies looking for a full-service HR solution, especially for small to mid-sized businesses. Used when companies need specialized, high-level talent for key positions.


When Choose Employer of Record (EOR)?

Nowadays, business environment is complex and fast-changing, and companies must focus on their core area of expertise to thrive in their careers. With the right talent in place, you can land new clients, build capability, close a skills gap, test a new market, or develop a new product.

If your company is expanding into new markets or operating in multiple countries, an EOR can help navigate complex international employment regulations, compliance, and payroll requirements, allowing your company to focus on core business activities. This is especially beneficial for organizations that want to streamline operations and offload non-core functions, bringing more advantages than hiring them in your companies directly.


When Choose Professional Employer Outsourcing (PEO)?

Choosing a Professional Employer Organization (PEO) can be advantageous in various situations, depending on your business needs and objectives. If you are a small to mid-sized business lacking a dedicated HR department, a PEO can provide a full suite of HR services, including payroll processing, benefits administration, compliance management, and employee relations. PEOs often achieve cost savings through economies of scale. By pooling multiple clients' employees together, they can negotiate better rates for benefits and insurance, resulting in potential cost savings for your business.


When Choose Headhunt?

Headhunting is the active searching and recruiting of talented individuals who may be employed elsewhere. The company often works with a headhunt agency (the headhunter) who will target and approach the desired individual on behalf of the employer and offer a job opportunity.

The key advantage of headhunting is that it enables companies to find and recruit highly skilled individuals. By taking active and positive actions, you may get access to your ideal candidates who are not looking for a new job and seeking a career change. This surely enlarges your talent pool and will be truly beneficial for your company when your position requires specific skills or expertise. In addition, headhunting can be more time-effective due to its highly targeted candidate requirement.



Why Choose Hongda as Your HR Partner?

With an experienced HR specialist team, Hongda can help you build a wide range of solutions and deliver you the best services to reach the best talent in the market.

Whether you are looking for permanent placement, temporary employees, or contract staffing, you can always work with Hongda to get the most qualified candidates, especially when it comes to Hongda’s EOR services. Let’s see what can be included in our services!

  • Recruitment of employees: Sign labor contracts with employees on behalf of your company, including hiring, extension, termination, and conversion to permanent employment with follow-up contract management service.
  • Compliance with onboarding and offboarding procedures.
  • Comprehensive salary solutions and benefits management.
  • Employee management: retention of employee records, attendance, bonus and allowance management, expense and claims management, and vacation management according to the local laws.
  • Social insurance compliance services: purchase and management of employees’ social insurance in accordance with local labor laws.
    Salary payment: receive wages and social insurance funds from the client and manage the payment of employee salaries.



Why You Need Hongda’s Human Resource Services?

  • Simplified Payroll Processing:

As a compliance expert in China, Hongda has a team of legal and tax professionals to ensure accurate, compliant, and timely payments. They handle payroll without the need for a physical entity in China, ensuring employees receive the required benefits and optional perks to attract top talent. Hongda ensures compliance with all tax requirements, including filing tax returns, remitting taxes, and withholding individual income tax from employee salaries.

  • Rapid Employee Onboarding:

Establishing a legal entity in China can take months and incur substantial costs. EOR services can help you hire and onboard new employees within days or even hours, without the need for a subsidiary. Hongda has extensive experience in the onboarding process, including conducting employee background checks, creating compliant employment contracts, and facilitating social insurance setup.

  • Minimized Compliance Risks:

Hongda ensures that all employee contracts in China comply with the country's labor contract law and promptly updates them in the event of legal or regulatory changes, minimizing compliance risks.

  • Time and Cost Savings:

By avoiding the need to establish a legal entity, entering new markets becomes faster and easier. Hongda manages employee administration and local compliance procedures, saving you time and resources. This allows you to test your business in a new market with minimal expenses. If all goes well and you decide to establish a local entity, Hongda is ready to assist.

  • Digitized System Management Platform:

Hongda provides an online platform for tracking and managing various aspects of employees in China, including labor contracts, payroll, and benefits. You can easily access all employee data in one centralized platform.





Companies can save time, cut risk, and lower costs by outsourcing HR to Hongda. Let's book a free conference call!

National & Guangzhou HR Services From Hongda Business Services

Hongda offer the following useful China HR services for your business:

  • Calculate and arrange payment of Social Insurance and Housing Fund contributions for your employees (foreign and local) to the correct government office
  • Draft and Sign 100% legal Labour contracts for foreign and local staff (in English and Chinese)
  • Assist your company in hiring staff with the qualifications you need
  • Employee file management, where Hongda will keep safely on file all relevant documents relating to the hiring, employment, and dismissal of each employee (such as their CV, ID, employment contract, and resignation letters)
  • Legal consultancy and interpretation of labour laws in case of a dispute
  • Conduct monthly payroll. You may not have an accountant on staff, or perhaps prefer to keep salary information confidential from employees, or perhaps you are a new company who has yet to set up a bank account. Hongda can pay staff for you, along with calculating their taxes etc.

Additional HR Service - Annual Labour System Audit

In addition to the above standard China HR services available from Hongda for companies in Shenzhen, Guangzhou, and the PRD, we also offer:

Annual labour system audit: Hongda will audit your company’s labour system from top to bottom as a one off service, or annually. In doing this we will:

  • Draft and create labour rules for staff
  • Create a staff handbook for current staff and new hires
  • Train your HR to manage your staff according to local labour laws
  • Audit your business activities and the working method of staff to assess that everything is as efficient and legal as possible
  • Produce a report, in plain English, outlining the current labour system’s strengths, weaknesses, and give suggestions and options that can be followed to improve your business



Consultation & Proposal

We (can) advise you on the best solution for your business model and send you our comprehensive proposal.


Signing & Payment

After reviewing the proposal, we sign the service contract and receive your payment.


Preparing Documents

We send you an application form as well as the list of documents we need from your side.


Take a Break

Sit back, relax and let us take care of everything from here on out.


What does the typical RPO engagement include?

An RPO company partners with you to provide the talent acquisition functions your business needs. The typical RPO engagement includes:

  • Full RPO: With a full RPO engagement, your RPO provider assumes responsibility for your business’s end-to-end recruitment process, from sourcing to assessments to onboarding. This type of engagement typically includes strategic development and implementation.
  • Blended RPO: Under this type of RPO arrangement, you’ll outsource specific functions or divisions to an RPO provider and manage the rest in-house.
  • On-demand or project RPO: While RPO is typically a long-term arrangement, on-demand RPO gives you access to RPO on a short-term basis, usually to meet an immediate hiring need or to provide support for hiring spikes.

What types of positions are typically targeted through headhunting?

Headhunting is commonly used for senior management, executive, and specialized technical positions where the demand for talent is high and the qualifications are specific.

How do headhunters like Hongda find potential candidates?

Headhunters use various methods, including industry networks, referrals, social media platforms, professional databases, and research, to identify potential candidates who fit the required criteria.

How long does the headhunting process usually take?

The length of the headhunting process can vary widely depending on the position, industry, and the availability of suitable candidates. It can take anywhere from a few weeks to several months.

What's the success rate of headhunting in finding suitable candidates?

The success rate depends on various factors, including the skills required, market conditions, and the headhunter's expertise. However, headhunting is generally considered to be effective in targeting specific, hard-to-find talent.

What recruitment functions can be outsourced through RPO?

Various functions can be outsourced, including job posting, candidate sourcing, applicant tracking, interviewing, background checks, onboarding, and even workforce planning.

Is RPO suitable for all types of companies?

RPO can be beneficial for companies of different sizes and industries, but it's particularly valuable for organizations with high-volume hiring needs, specialized skill requirements, or a need to quickly scale their workforce.


Sound United

Jack Peng
Sound United Vice President > Asia Pacific

Sound United is the leading designer and manufacturer of consumer audio products in the US. Sound United has been using Hongda since 2013. Moving one’s operation to China is not a small task, But Hongda’s expert services helped us set up a company and deal with tax issues so we could get on with growing our business in no time at all, and that’s why we continue to use them today.

Business Service Guidance

Hongda Business Services helps foreign businesses looking to establish in the PRD (Pearl River Delta, Guangdong), Shanghai and Hong Kong take advantage of everything that China has to offer. We typically work with companies in Shenzhen, Guangzhou, Zhuhai, Zhongshan, Shanghai, and Hong Kong.


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