China has a very lucrative and booming market. Global businesses only strive in the fierce competition if they can control their expenses. If you want to start your business in China, then it will be a rational decision to hire local employees. The benefit of hiring the local employees is that the local employee will be more productive for your business, as they know all the dynamics of the Chinese market.
Let’s have a look at how to hire a local employee in China
Knowing the Rules and Regulation to Hire Employee
The Employment Contract Law is very important in China. It is related to employer and employee relationships. This is applied to expats and local Chinese employees. Moreover, this law is being used in Chinese companies and even in Foreign-owned enterprises. This law is made to maintain a healthy relationship between the company and employees and to protect the rights of the employers. This rule needs to be considered while hiring a local employee in China.
For hiring a local employee, direct employment is done through foreign investment enterprises or they recruit through professional regulation commission without hiring any service company. Foreign investment enterprises need to sign an individual labor contract with each employee.
Hiring through Labor Service Companies
The hiring that is done through the professional regulation commission is arranged by government-designated labor service companies. The representative of the foreign company signs the contract with the service company, and the service company will ask the professional regulation commission to get employees to work for the office. The representative company has a contractual relationship with the service company and not with the professional regulation commission. They may sign the supplementary contract with the foreign company and the PRC employee to adjust vacations, salary amount, confidentiality, competition clauses, and many more.
Contract of Employment
All the employees in China need to sign employment contracts with their companies. Limited companies can sign employment contracts directly with the employees and the Representative Office (RO) can hire local employees through licensed HR agencies by talent dispatching services and employee leasing. The licensed HR is also responsible for employee Payroll, individual income tax, and other mandatory benefits as per the local policies. There is no standard format for the form. These points should be included in the agreement.
- Job description, job title, and location of the work.
- Date of joining, Term of contract, and probation period.
- Employer and employee address, official identification, and signatures.
- Working conditions and labor security
- Compensation and benefits, insurance information
- Rules regarding termination
- Break of contract requirements and disciplinary rules.
- Other requirements like a non-disclosure agreement, training bond, and non-compete agreement.
Type of Employment
Potential people can be hired on a permanent and temporary basis. Temporary employment is on a contractual basis or on a task-basis. Permanent employment is on fixed terms.
- If the employment contract is 3 months to 1 year, the probation period is up to1 a month.
- If the employment contract is of 1 year to 3 years, then the probation period is up to 2 months.
- If the employment contract has no fixed term, then the probation is up to 6 months.
- If the employment contract is of a fixed-term or it is less than 3 months, then there is no probation period.
Options for Hiring the Local Employee in China
Every employer looks for the most practical option to find top talent. Employers look for a more online and offline option. Some online and offline options include
- WeChat – The social networking site caters to multi-cultural areas, and local job openings are listed there.
- LinkedIn – It is used by many global companies to find a qualified candidate. It is very famous in China because Facebook and google are restricted there. Its usage has tremendously increased in China for over a couple of years.
- Region-based websites –Many areas in China have their websites for jobs like Guangzhou Stuff and Shenzhen Party. These sites offer job listings, networking, and hiring options.
- Job Fairs and Career Events – In job fairs and career events, companies can easily find students that have recently graduated
- Professional Recruitment Agencies – They are the experts that use different strategies to hire the best candidate for the job position.
- Job boards – Job positions are listed on these boards.
How to Attract Local Employees in China
There are different seasons in China when people want or don’t want to switch jobs. The best time for job switchers is from April to May. That is the period when people have got their annual bonuses that usually occurs in March-April time.
The worst time to look for local employees is from December to February. That is the time before the bonus. People will not want to lose the bonus. If you can’t wait till May, then you need to provide a compensation package. To attract the right talent, you can give the following facilities
- Good bonus system
- Attractive salary package
- Additional benefits like annual leaves, allowances, insurance plan, training, and development plans
- Succession planning
- Attractive growth opportunities
For an attractive compensation package, you need to analyze the average market salary according to the role for which you are hiring, consider the city for which you are recruiting and the current salary package of the employee. The candidate will opt for your company if you offer more salary than his previous salary.
Training and Development
Many training and development programs are playing a significant role in attracting employees. People are more interested if companies send them for training abroad. It is value-added for the designation from junior to mid-level positions. China also offers external training programs both in Chinese and English language. Potential candidates can be attracted to your company if you work for their training and development.
Companies ranking and reputation also plays an important role. Many companies give incentives to their star employees like a bonus, foreign trips, and gifts besides their earned salary. People like to get a job in such companies.
If you want to hire a local candidate, then you need to approach them in their native language. Your company’s mission and vision and all your HR strategies and policies should be in the Chinese language. That’s where Chinese Translation Services can help. It can provide you with impeccable translation services in a fast turnaround time. Contact us and get a free quote now!