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.
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!
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:
| 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. |
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.
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.
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.
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!
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.
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.
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.
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.
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.
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Hongda offer the following useful China HR services for your business:
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:
We (can) advise you on the best solution for your business model and send you our comprehensive proposal.
After reviewing the proposal, we sign the service contract and receive your payment.
We send you an application form as well as the list of documents we need from your side.
Sit back, relax and let us take care of everything from here on out.
An RPO company partners with you to provide the talent acquisition functions your business needs. The typical RPO engagement includes:
Headhunting is commonly used for senior management, executive, and specialized technical positions where the demand for talent is high and the qualifications are specific.
Headhunters use various methods, including industry networks, referrals, social media platforms, professional databases, and research, to identify potential candidates who fit the required criteria.
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.
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.
Various functions can be outsourced, including job posting, candidate sourcing, applicant tracking, interviewing, background checks, onboarding, and even workforce planning.
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.
Have some inquiries or question, and want to have a discussion with Hongda about your requirements? No problem! Simply book a free meeting and we will contact you and offer help!
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