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Hiring staff for a new business or a new branch itself is a very complicated, time consuming and lengthy process and the situation gets tougher when the staff is needed to be hired in a foreign company like China. Hiring PEOs are considered to be the best option in such situations. The advantages will help you make a better decision.

China is among the fastest-growing economy in the world and has huge business reach in the Asia market along with the UK and the USA. More and more companies are trying to set up their base or branch in China whether it is manufacturing & production or sales. With this expansion in China, the biggest problem a company has to face is Labor Law in China which needs to comply with 100% accuracy.

There are many legal obligations concerned with hiring staff in China with or without a legal entity and one of the best ways to bypass these legal obligations is hiring a PEO (Professional Employer Organization). In the below article we will share the advantages of using a PEO like Galaxy Group in China when hiring.

What are the Advantages of using PEO to Hire Staff in China?

Need for a legal entity – It is mandatory for a company to have a legal entity in China if the company wants to hire staff. With the help of a PEO, the before said obligation is bypassed and employees can be hired through a local PEO which takes care of all the compliances and related matters.

Local Compliance and Legal Requirements – Once a company hires a PEO to manage its HR & payroll-related services, the PEO is responsible to take care of all the compliance and legal requirements that are to be followed as per local labour laws. The PEO with their expertise and in-depth awareness of legal obligation saves a lot of time, money, and any penalty which may befall due to non-compliance of any particular labour law.

Focus on core business – By contracting a PEO, hiring and payroll-related operations become one less thing to worry about when setting up a new business in China. Management or Owner can put more focus on developing and expanding the business.

Save Time and Money – With the help of a PEO like Galaxy Group which has a good presence in the market for a longer period of time, it becomes easy to attain necessary approvals and licenses and also ensuring 100% compliance. A PEO saves any unnecessary fee or fines that are levied in case of non-compliance.

Employee Service – An outsourced HR company can focus more on employee needs and rights, then a single HR or a small HR team that handles day to day operation. An employee gets quick and correct guidance in case of any information needed on benefits and new laws. Managing payroll becomes easy and hence the staff gets a quick response if any grievance is related to salary or remuneration.

Legal Assistance – An outsource HR agency is very beneficial to take assistance from in case of any legal dispute with an employee or authority.

With Galaxy Group by your side, it becomes easy to manage all your HR operations in a new country like China, Macau, Hong Kong & Taiwan with or without a legal entity.