Category: Recruitment and incubation

Outstaffing and PEO service in China: Legal news to know

Outstaffing and PEO service in China: Legal news to know

Professional Employer Organization PEO service in China is an advantageous solution for foreign companies wishing to establish themselves in this dynamic market. As the economy is constantly evolving and the legal framework is rapidly adapting, it is crucial for companies to be aware of the rules governing contingent workforce management in China. The purpose of this article is to inform companies of the latest legal developments regarding the hiring and taxation of Chinese or expatriate employees. As evidenced by the extension of expatriate tax benefits until 2027, China continues to open its doors and attract foreign talent and skills. 

China: Fertile Ground for Business Expansion

With a population of over 1.4 billion and a growing middle class, China offers immense potential for foreign companies. The country is a global hub for manufacturing, technology and services. Through the use of “portage salarial”, companies can access this lucrative market while minimizing risk and investment. By simplifying administrative and legal procedures and delegating them to a competent Outstaffing company such as VVR International, companies can concentrate on their core business. What’s more, “portage salarial” offers greater flexibility than setting up a local company when it comes to implementing a strategy in China, and enables rapid adaptation to market changes. In an economic environment as dynamic as China’s, this flexibility is an advantage for initiating and sustaining local operations.

New Legislative Developments and Their Impact

In an effort to attract more foreign investment, China is constantly adjusting its legislation on professional management. Recent legislative changes are designed to simplify procedures for businesses while providing greater protection for both local and foreign workers. For foreign companies, this means a better understanding of their legal obligations, a reduction in the risks associated with non-compliance, and greater confidence in the freelance management process. In addition, the introduction of these new regulations demonstrates China’s commitment to creating a favorable and transparent business environment for foreign companies.

Taxation: benefits for foreigners extended until 2027

One of the most notable aspects of China’s recent developments concerns taxation. With the aim of encouraging more expatriates to work in China and making the country more attractive to international talent, the Chinese government has decided to extend tax benefits for foreigners until 2027. This measure, which was originally planned for a shorter period of time, offers significant benefits to foreign workers in terms of tax relief. 

Navigating the Chinese regulatory landscape

In a country where regulations are rapidly evolving, it is imperative for companies to keep abreast of the latest legislative changes. With its growing economy and increasing openness to foreign businesses, China frequently adjusts its laws to meet changing market needs.

Preparing for the future of professional management in China

As China continues to assert itself as a global economic power, the opportunities for foreign companies are greater than ever. With its advantages and flexibility, professional management is an invaluable tool for those seeking to penetrate this dynamic market. However, effective legal intelligence is essential to ensure compliance and maximize the benefits of China’s labor and tax laws. Companies that invest in regular legal intelligence can anticipate and adapt quickly.

For foreign companies, working with an experienced, locally-established partner like VVR International is the key to efficient and rapid recruitment. What’s more, our HR team will keep you abreast of any legal developments that may affect your teams in China and will support and advise you at every stage of the recruitment process and in setting up your collaboration.

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Recruiting in China: Avoid classic mistakes

Recruiting in China: Avoid classic mistakes

Entering the Chinese market requires a well-thought-out strategy, especially when it comes to recruitment. The Chinese market is not only vast, it’s also complex to understand. Navigating the Chinese business landscape without making mistakes can seem like a daunting task. But with the right information and careful preparation, it’s possible. This article aims to guide you through the common pitfalls of recruiting and managing human resources in China to help you find and hire the best talent.

Understanding the Chinese Job Market

China is unique, both culturally and economically. Before you begin the recruitment process, it’s important to understand some of its unique characteristics.

Cultural peculiarities:

Chinese culture emphasizes hierarchy and respect. During interviews, for example, it’s not uncommon for candidates to be modest and downplay their accomplishments. Being able to read between the lines is essential to accurately assess their abilities.

The value of guanxi:

In China, relationships, or “guanxi,” play a paramount role. Guanxi is more than a professional network. It’s a complex web of personal relationships that can influence hiring decisions. Failing to take this into account can mean missing out on quality candidates or, conversely, leading you to make less prudent hires.

In short, the key is to adapt and integrate rather than impose a Western approach.

Common recruiting mistakes to avoid:

Success in China often depends on the ability to learn and adapt quickly. To avoid common faux pas, here are a few mistakes to avoid:

Inappropriate job offers:

Simply translating a job posting is not enough. It’s crucial to contextualize it for the Chinese market. For example, expected benefits and job descriptions may differ from those in the West. The choice of job title is also an issue to be aware of in order to receive appropriate applications.

Underestimating the employer brand:

In China, a company’s image is paramount. Candidates often research a company’s reputation before applying. Make sure your brand is strong and well-received locally.

Ignore local regulations:

Chinese labor laws are strict and can vary from region to region. Make sure you are in compliance to avoid potential penalties.

While these mistakes are common, they can be avoided with proper preparation and in-depth knowledge of the local context.

How to streamline the recruitment process ?

To successfully recruit in China, here are a few key tips to optimize your approach:

Work with local experts:

Working with local specialists or recruitment agencies such as VVR International, which has a dedicated HR department and team, can help you better understand the professional landscape, education system, training courses and diplomas awarded, while effectively targeting ideal candidates.

Focus on ongoing training:

Chinese employees value training and development opportunities. Offer attractive programs to attract and retain top talent.

Multi-channel approach:

Don’t limit yourself to traditional recruitment platforms. Use a combination of job boards, social networks and networking events to reach a wide range of potential candidates.

Getting started in China requires a thoughtful, customized approach. Follow these tips to maximize your chances of success.

Enter the Chinese market with confidence

There is no denying the potential of the Chinese market. However, the key to success lies in a thorough understanding of its unique landscape and cultural idiosyncrasies. By avoiding common recruitment mistakes and adopting a well-thought-out strategy, companies can not only succeed, but also build lasting and beneficial relationships with their Chinese employees.

Never underestimate the importance of preparation. By investing time and resources in a thorough understanding of the market, working with local experts, and continually developing your team, you’ll be well positioned to make the most of this dynamic market.

Enter China with confidence, but always with a willingness to learn and adapt. Your success will depend as much on your preparation as on your ability to evolve.

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Efficient Recruitment and Portage : Rapid and Successful Deployment in China

Efficient Recruitment and Portage : Rapid and Successful Deployment in China

The Chinese market offers strong economic potential and is attractive to international companies. However, there are a number of hurdles that need to be overcome in order to be successful. Firstly, recruitment is one of the biggest challenges for companies looking to set up in China. That’s why it’s wise to seek advice and support at this crucial stage of your development strategy in China. Once the talent is selected, it’s time to set the terms of the relationship, which will depend on the stage of development of the company in China. If you’re just starting out in this market, or if you want to assess the opportunities for your business in the country before considering setting up your own structure, then portage salarial may be the solution. Portage salarial allows companies that are not physically present in China to quickly hire a new employee. The employee can then perform tasks locally, delegating the administrative and legal management of the employee position to a third-party company based in China.

Understanding Portage and PEO services in China

Wage portage is a three-way relationship between a management company, a professional and a client company. Instead of hiring an employee directly, a company can go through a “portage salarial” company. The “portage” company then handles all the administrative and legal formalities associated with the employment. (https://www.vvrinternational.com/en/succeeding-in-china-portage-services-to-get-started/)

Why is this important in China?

Legal compliance:

The legal framework for employment in China is complex and evolving. Using the portage solution ensures that companies remain compliant with local laws and regulations without having to master them themselves.

Flexibility:

Companies can test the Chinese market without setting up a legal entity. This allows for faster expansion with less financial risk.

Ease of administration:

All aspects of employment contracts, payments, benefits, and taxes are handled by the Portage company. This frees the client company from administrative management and allows them to focus on their core business.

Access to a talent network:

Freelance administration companies with a specialized HR department staffed by experts familiar with the Chinese labor market have privileged access to a network of qualified professionals. This local presence combined with HR expertise is particularly beneficial for foreign companies that are not yet familiar with the specifics of the Chinese labor market.

In many cases, the use of “portage salarial” is the most appropriate solution for companies wishing to expand in China. Not only does it allow you to navigate the legal labor landscape with confidence, it also offers unrivaled speed of implementation, flexibility and efficiency.

Strategies for Identifying and Attracting Top Talent through Portage and PEO services

A company’s success depends largely on the quality of its talent. This is especially true in China, where competition for skilled professionals is fierce and the talent pool is the size of the combined American and European pools. Here’s how companies can optimize their recruitment strategy:

Use local tools:

The Chinese market has its own job search and professional networking platforms. Rather than relying solely on Western platforms, companies should explore tools such as Zhaopin or 51Job to access a wider pool of candidates.

Work closely with specialized companies that offer Portage and PEO services in China:

By working closely with an HR consulting firm such as VVR RH, companies can benefit from sound advice on how to position their job offers, salary expectations, and more.

Consider Chinese culture:

Corporate culture in China is heavily influenced by traditional Chinese culture. Appreciating aspects such as respect, loyalty, and professional stability can make all the difference in an interview.

Provide training and development opportunities:

Chinese candidates value ongoing training opportunities. By partnering with Portage companies that offer such training, companies can stand out from the competition.

Contractual clarity:

Make sure the terms of employment are clearly defined. With Portage Salary, this is made easier because the Portage company manages these aspects while ensuring compliance.

It is important to recognize that the Chinese market is unique. By adapting the recruitment strategy to the needs and expectations of Chinese professionals, while relying on freelance administration, companies can truly maximize their chances of success.

Ensure Successful Integration of Employees Recruited Through Portage  and Strengthen Your Collaboration Through Incubation

The act of hiring is only the first step in an ongoing employer-employee relationship. To ensure a successful long-term collaboration, it’s critical to facilitate the smooth integration of new employees:

Thorough training:

Make sure employees fully understand their roles, responsibilities, and expectations. As part of their incubation services, Portage companies can often provide customized training and a welcome home for foreign employees to help bridge cultural or language gaps.

Ongoing support:

Assign a mentor or consultant to guide the new employee through the initial stages of integration. VVR International’s HR team ensures smooth communication between foreign companies and expatriates, and is on hand to help solve any problems or adjustment difficulties that new expatriates may encounter in China.

Facilitate administrative management:

One of the great strengths of independent management is that it simplifies administrative procedures. This allows new employees to focus on their work without having to worry about bureaucratic aspects such as obtaining insurance or managing tax deductions.

Company culture and values:

Although portage administration allows for some distance between the client company and the employee, it is important to ensure that the company’s values and culture are well communicated. Integration sessions, workshops and regular meetings can help build a sense of belonging.

Provide regular feedback:

The first few months are critical to the employer-employee relationship. Be sure to provide regular, constructive feedback to set the employee up for success.

With a successful integration, not only does the company benefit from a dedicated and productive employee, but it also strengthens its reputation as an employer of choice, making it easier to recruit in the future.

Portage combined with hiring the right talent: the winning strategy for success in China

Rich with opportunities and challenges, China is an expansion territory for many international companies. But if you really want to get a foothold and succeed, mastering recruitment is crucial. Portage Salarial is emerging as a winning strategy, not only to facilitate the recruitment process, but also to ensure the integration and retention of top talent.

With over two decades of experience, VVR International has positioned itself as an invaluable partner to European companies seeking to establish and thrive in China. By taking over critical tasks such as drafting employment contracts, managing human resources, payroll, administration and much more, VVR ensures that companies can focus on their core business.

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Portage vs setting up a business in China: The duel

Portage vs setting up a business in China: The duel

Once the Chinese market has been identified as a real opportunity, there are two main strategies for accelerating your business development in China: portage and setting up a local company. While China continues to be a popular destination for international expansion due to its vast and dynamic market, choosing the best approach to enter requires careful consideration. By simplifying the process, portage appears to be an attractive option for companies wishing to test the waters. On the other hand, setting up a local entity offers an unparalleled level of control and commitment. However, each option comes with its own set of advantages and disadvantages. This article will examine these two strategies in detail, weighing up the pros and cons, to help companies make an informed choice tailored to their needs and objectives in China.

Advantages of Portage services in China

Portage salarial is a solution that enables a company to hire an employee in China without having to set up a local legal entity. Here are the main advantages:

Administrative simplification

Avoid the complexities involved in setting up and managing a local entity. The freelance administration company handles all the administrative, tax and social security formalities for you, and can even physically house your employee in its premises in China.

 

Financial flexibility

With portage solution, no investment is required to set up your team in China. The only costs are the actual operating costs (salaries, travel expenses, etc.). Companies can therefore test the Chinese market with minimal investment and a limited commitment.

Absence of legal and regulatory risks

The portage company masters Chinese labour legislation and takes care of the employee’s legal obligations and administrative management, thereby reducing the risks for the foreign company.

Speed of implementation

Once the new employee has been selected, companies can start their activities in China almost immediately, without waiting for the long lead times involved in setting up a company.

Disadvantages of portage in China

While portage offers a simplified entry into the Chinese market, it also has its limitations:

Potential long-term costs

Although less expensive initially, portage can become costly over time, particularly if the company wants to increase the number of employees working in China. In this case, portage is a temporary solution until a local legal entity can be set up. VVR International supports companies from the recruitment of their first employee to the setting up of their own entity in China.

Dependence on a third party

Trust in a portage company imposes a dependence that can limit strategic autonomy. This is why it can be a transitional solution. This first stage can be part of a development project. If you are planning to set up a long-term presence in China, we recommend that you use a company offering a strategic diagnosis and a range of services to support your development and ensure the long-term future of your business.

Less control over operations

By delegating the administrative, tax and legal aspects, companies can feel a lack of direct control over their activities and their employees. This can be countered by implementing effective communication and monitoring tools that are accessible in both Europe and China.

Advantages of setting up a business in China

Opting to set up your own business in China is an ambitious move that offers a number of significant advantages:

Full control over operations and strategy

Having your own business gives you total control, enabling you to adjust strategy and operations in line with market needs and opportunities.

Potential for growth and expansion

With a solid structure, companies have the freedom to grow, invest and expand without limitations.

Recognition and credibility in the local market

A local presence, by opening stores or premises dedicated to its business or to the distribution of its products, strengthens the confidence of Chinese consumers and partners, facilitating business relationships.

Cultural and market adaptability

Proximity to the market allows us to understand consumers even better, and to adapt more finely to cultural and commercial specificities.

Disadvantages of setting up a business in China

Despite its advantages, setting up an entity in China is also fraught with pitfalls that should not be overlooked:

A long and complex process

setting up a business in China can be an obstacle course, with lengthy and sometimes opaque administrative, regulatory and legal procedures.

Legal and regulatory risks

China has a distinct legal and regulatory environment that can pose challenges for foreign companies. Failure to comply with regulations can result in severe penalties.

High initial costs

Unlike freelance administration, setting up a business requires a substantial initial investment, particularly in terms of capital, time and resources.

Cultural and linguistic barriers

Cultural differences can lead to misunderstandings and require constant adaptation.

Optimise your expansion in China with VVR International

The decision between portage and setting up a company in China is a crucial one, and largely depends on each company’s objectives, resources and long-term vision. While portage offers a quick and less risky entry into the Chinese market, a long-term vision with ambitions for solid expansion might lean towards setting up a company, despite its initial challenges.

However, this is not a choice to be made alone. With 23 years’ experience and more than 1,000 successful projects under its belt, VVR International is your trusted partner for securing and sustaining your business development in China.  VVR International carries out an initial diagnosis and works with you to devise a development strategy tailored to your business. VVR International then has the necessary licences and a dedicated HR team to recruit and support your employee in China or to help you set up an entity in China. Whatever your decision, VVR’s expertise will be a major asset in your conquest of the Chinese market.

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Success in China: Managing your local teams brilliantly

Success in China: Managing your local teams brilliantly

China, with its dynamic economy and large population, offers countless opportunities for foreign companies looking to expand their global presence. Yet succeeding in China is about more than simply bringing products or services to market. At the heart of this success lies the ability to manage local teams effectively, a task that requires a deep understanding of Chinese culture and the country’s specific business environment. This article aims to enlighten companies on the nuances of management in China and to provide practical advice on how to build a strong and successful corporate culture.

Understanding Chinese culture at work

The Chinese business world is deeply rooted in its rich history and traditions. To effectively manage teams in China, it is essential to understand some key elements of the local business culture.

The predominant role of the hierarchy

In China, respect for hierarchy is sacrosanct. Employees often expect clear direction from their superiors and are used to a hierarchical structure. As a manager, it is crucial to recognise and respect this system, while creating an environment where employees feel confident to share feedback and ideas.

Guanxi (relationships) in business

Guanxi is a concept that refers to the importance of relationships in the Chinese business world. Building and maintaining solid relationships is fundamental to success. It’s much more than just a professional network; it’s a symbiosis based on mutual respect, trust and reciprocity. Incorporating this element into your management approach can greatly improve team collaboration and effectiveness.

Particularities of teamwork in China

Unlike some Western cultures where individualism can be valued, in China group harmony often takes precedence. Teams tend to value cohesion and avoid direct conflict. It is therefore essential to promote an environment where each member feels valued and where open communication is encouraged.

Best practices for effective management

Managing a team in China can be a challenge for those unfamiliar with the local culture. However, by adopting certain best practices, it is possible to successfully navigate this complex landscape.

Give priority to clear communication

Language and cultural barriers can often lead to misunderstandings. It is essential to ensure that expectations are clearly defined and understood. Using translation tools, organising regular training sessions and encouraging question-and-answer sessions can help ensure smooth communication.

Promoting training and skills development

The Chinese commercial landscape is changing rapidly. To stay competitive, it’s essential to invest in ongoing training for your teams. This can include technical training, language courses or cultural workshops.

Recognising successes and tackling challenges

Recognition is a powerful motivator. Celebrating successes, whether big or small, can boost team morale. Similarly, when it comes to challenges or problems, it’s best to approach them constructively, looking for collaborative solutions rather than pointing fingers.

Building a solid, appropriate corporate culture

Creating a corporate culture that resonates with local employees while retaining the company’s global identity is a delicate balance to strike. Here are a few key points to help you succeed.

The fusion of Chinese and Western values

It is not simply a matter of transposing a Western corporate culture to China. It is essential to understand and integrate Chinese values. This might involve taking account of local festivities, adopting preferred modes of communication or introducing managerial practices that resonate more with the local ethos.

Fostering a culture of innovation

The Chinese market is extremely competitive and constantly evolving. Encouraging innovation, initiative and flexibility within the team can help the company stay at the forefront and adapt quickly to new trends and opportunities.

Putting trust at the heart of relationships

Trust is the cornerstone of any successful business relationship. This is particularly true in China, where guanxi plays a central role. Establishing a culture of mutual trust, where employees feel valued and listened to, can greatly enhance commitment and job satisfaction.

Towards a prosperous future: conclusions and next steps

Navigating the Chinese business landscape, rich in opportunities but also in challenges, requires a tailored approach that respects local particularities. Success in China depends not only on a sound business strategy, but also on the ability to build and manage high-performance local teams.

The key elements discussed in this article, from understanding Chinese workplace culture, to adopting best managerial practices, to building a solid corporate culture, are all cornerstones for success in China.

 

As the Chinese market continues to evolve, it is essential for companies to remain flexible, invest in ongoing training and ensure that their management approach is adapted to local realities. By putting these principles in place, foreign companies can not only succeed in China, but also build lasting and mutually beneficial relationships with their local teams.

VVR International and its VVR HR team can help you set up a management style that is adapted to international companies and to the way Franco-Chinese teams operate.

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Succeeding in China: Portage services to get started

Succeeding in China: Portage services to get started

The Chinese market offers enormous opportunities for foreign companies. However, setting up in China can be a major challenge, especially when it comes to the legal and administrative aspects. That’s where freelance administration comes in, as a flexible and effective solution to facilitate your entry or expansion into the Chinese market. In this article, we explore the keys to successful thanks to Portage services in China, to help you develop and sustain your local business with complete peace of mind. Business development – VVR International, strategic development, production, sourcing, distribution

Understanding Portage and PEO services in China

Definition of Portage

Employee portage is a service that enables a company that does not have a legal entity in China to delegate the administrative management of its employees to a portage company. This system is particularly useful for foreign companies that are not yet fully established and wish to initiate or accelerate their development in China. VVR International will take care of the administrative, legal and physical (if necessary) hosting of your Chinese or foreign employee as part of its “portage salarial” services. .Recruitment & Portage – VVR International, strategic development, production, sourcing, distribution…

The legal context in China

China has its own employment laws and regulations, which can be complex. It is therefore crucial to work with a “portage” company that understands the Chinese legal framework and has all the necessary licences to offer this service legally in China. VVR International is the only European company with licences recognised by the Chinese authorities to recruit and manage employees throughout China.

Advantages and disadvantages

The benefits include flexibility, reduced administrative costs and legal compliance. However, it is essential to choose the right partner to avoid disadvantages such as hidden costs or compliance issues.

Freelance administration in China: the start of a development strategy – VVR International, développement stratégique, production, sourcing, distribution…

How to choose a freelance administration company in China

Selection criteria

When it comes to choosing a portage company, a number of criteria need to be taken into account. Among them, experience in the Chinese market, cost transparency and reputation are essential.

Questions to ask

Before committing yourself, ask specific questions about the services offered, proximity, charges, legality and how to cancel the contract. This will help you avoid unpleasant surprises.

Avoiding common pitfalls

Be wary of companies that promise “turnkey” solutions without providing details. Also beware of hidden charges and make sure you read the terms of the contract carefully.

Key steps to successful freelance administration in China

Planning and budget

The first step to successful freelance administration in China is careful planning. Draw up a realistic budget that takes into account not only direct costs, but also administrative costs and other unforeseen expenses. Define your objectives and establish an appropriate development strategy.

Human resources management

Effective human resources management is crucial. Make sure that the freelance administration company you choose offers human resources management services, such as recruitment, incubation, human resources monitoring and performance monitoring. Identifying your needs, selecting the right profile and then training them are decisive factors in the long-term success of your development project in China.

Monitoring and assessment

Finally, it is essential to put in place monitoring and evaluation mechanisms to measure the effectiveness of freelance administration. This will enable you to adjust your strategy accordingly.

Conclusion: Put the odds in your favour with VVR International

As you can see, portage is a fast, legal and effective solution for securing your new market in China. VVR International offers you a full range of services to help you set up successfully by supporting you at every stage of your project. From rapidly setting up an operational team to managing complex administrative procedures, VVR International is your partner of choice. Home – VVR International, strategic development, production, sourcing, distribution

In addition to its portage and PEO services, VVR International can help you to recruit and manage your staff, while offering you suitable residential options thanks to its offices in four strategic areas in China. Their presence in France and China ensures that you receive quality support and assistance. Their presence in France and China guarantees you high-quality support and assistance.Areas of expertise – VVR International, strategic development, production, sourcing, distribution…

To find out more, we invite you to contact our experts for tailor-made support: Contact

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PEO in China: the beginning of a development strategy

PEO involves using a company based in China to provide physical and legal housing for a foreign or Chinese employee. It allows companies that do not have an office in China to recruit and work with an employee locally. PEO solution is an important and sometimes decisive step to ensure a safe and successful development in China: the company can start its development while limiting risks and investments

It’s a transitional option between setting up and establishing a structure in China. The “portage” company offers support throughout the process of creation and acquisition of full autonomy.

In this way, PEO service offers companies wishing to enter the Chinese market the opportunity to gain an insight into the market without the need for a physical presence or a legal entity in China. This solution offers great flexibility and efficiency in deployment and customization. The employee is almost immediately ready to operate locally.

Thanks to its support and in-depth knowledge of the Chinese labor market and its legislation, the PEO services company enables the foreign company to start its business in China without the need for specific experience or multicultural management skills.

The company delegates the management of the employee’s payroll and related administrative formalities to all local authorities. In effect, the third-party company becomes the local employer of the employee, who benefits from a local contract. As such, the umbrella company will take the necessary steps to obtain work visas and residence permits for foreign employees coming to work in China. The company will act as an intermediary for the payment of salaries and the various taxes and charges associated with the employee (insurance, contributions).

Our HR Team in China is responsible for managing and monitoring the employee’s expenses and is the local contact person for maintaining solid contact with the employee in China. Finally, if necessary, the company can rent office space or any other premises required for the company’s activities in China.

PEO IN CHINA: SPECIFICS AND LEGAL FRAMEWORK

PEO is strictly regulated in China. Few companies can legally offer this service. In fact, VVR International is the only European company to benefit from licenses recognized by the Chinese authorities, such as the Labor Dispatch License. It should be noted that the portage of a Chinese employee and that of a foreign employee are not regulated in the same way by law.

In China, PEO requires the PEO company to pay all taxes and social security contributions in the employee’s place of residence. Thanks to its multiple locations, including four strategic regions of the country – Shanghai, Beijing, Guangzhou and Shijiazhuang – VVR International offers a wide choice of zones in which to develop the company’s activities according to its field and strategy.

VVR INTERNATIONAL: EXPERTISE IN HUMAN RESOURCES AND MANAGEMENT OF FRANCO-CHINESE TEAMS

Differences in culture and work practices can be an obstacle, leading to misunderstandings that negatively affect a company’s operations in China. VVR International, with its strong presence in France and China and its experts in human resources and in the management of Chinese teams, ensures that the collaboration is set up in the best possible conditions and helps to manage difficult and unforeseen situations (accidents, resignations, epidemics, etc.).

VVR INTERNATIONAL: CUSTOMIZED RECRUITMENT, YOUR OUTSOURCING SOLUTION IN CHINA

The choice of employees is crucial to the success of the first stages of development in China. That’s why, in addition to our PEO services, VVR International’s teams can take care of the recruitment of a new Chinese or foreign employee.

Thanks to the expertise of its dedicated VVR RH department, VVR International will search, interview, sort through a unique process and finally select the best talents to offer you the ideal candidate for recruitment. To do this, our teams will carry out a diagnosis of the company and its needs in order to define the profile best suited to the position.

Download our fact sheet on PEO in China.

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Digitalizing your company in China

Not merely a tech-business

China seems well ahead on the digitization road: use of new technologies in services (e.g. the mobile payments) , use of artificial intelligence and big data analysis in decision-making (e.g. the Court of Hangzhou), consumers’ behaviors (e.g. the shared bikes), public investments (cf VVR’s article on smart energies)… As a consequence many opportunities arise for European tech businesses in China, but not only. In this article, we will look at the transformation in management, business model, and HR policies induced by the digital transition.

According to a McKinsey report, Internet-linked transformation could contribute to an extent ranging from 7% (in the lowest estimations) to 22% (in the highest estimation) to China’s GDP growth through 2025. The main identified sectors where this growth would mostly happen are:

  • electronic consumer goods (with the Internet of Things, the digital media content…),
  • the automotive (with the supply chain logistics, the development of services thanks to connectivity…),
  • chemicals (with better demand forecast, and production planning, improved R&D…),
  • the financial services (with a decrease in non-performing loans, more efficient banking operations),
  • the real estate (with online sourcing and online marketing),
  • healthcare (with better patient-tracking for chronicle disease, e-commerce for OTC).

To be precise, China is more advanced than Europe when it comes to the use of new technologies, in products or services. Yet, China’s digitization of its industry is less advanced and happening now. Thus European companies already present in China, especially SMEs should take this step towards digitization now, in order to lead the coming disruption (gain in productivity, new business model, new relation to the consumer) instead of feeling threatened by it.

Beyond the development of technology-savvy products for customers (which might not be relevant in all industries), digitization can impact your entire organization in the way things are done, from the product development to the interactions with the client, passing by supply chain management and marketing. In China’s coastal area, most of the companies already initiated their digitization: in an EgonZehnder’s survey over a panel of Chinese companies (2016), 70% of the participants declared that their top management was in support of digitization, and half of them mentioned their CEO as the leader of these changes. Digitization is indeed not only about finding the right technologies to improve your activities, it is first and foremost about having the right team: a team that is able to understand and use these technologies, and that thinks according to this new digital paradigm (for instance, it is about definitely giving up paper-printed presentations). Indeed, a complete shift to the digital age can impact as far as your business model. It requires thus strong adaptation abilities from your company, which need to be developed through the right HR policies.

Given the potential scope of this transition, the top management must design, or at least be associated to, this digitization strategy (e.g. Mengniu’s CEO in VVR’s article on new consumption habits). It might mean thinking about a redefinition of your leadership to better foster collaboration, curiosity and learning in your teams. Besides, there a decision to be taken on whether to allocate digitization to one specific department, in which case you should decide precisely which, to centralize it or to externalize it.

Once the strategy is set, it needs to be taken up by management, as they are essential actors for the teams upgrading, and for the transition towards a more collaborative and innovative-driven way of working. In China, we identify training as crucial: it is indeed easier to train people that are already well integrated in your company rather than hiring and integrating new talents (cf VVR advice on recruitment in China). If, after having upgraded the teams, there is still a HR need, you should pay attention to the peculiarities in China regarding this type of recruitment, making it a rather competitive process.

Indeed, digitization is set to happen faster in China than in any other economy. Thus, several observers pointed out a shortage to come in IT and TIC talents. As such, challenges usually encountered when recruiting somebody in China are exacerbated: finding the right person, negotiating a salary, retaining the new employee… As an illustration, salaries for high-skilled tech talents, especially in the coastal provinces and for people speaking good English, are high, even to European standards.

To smooth the recruitment process and guarantee its success, it is of the utmost importance to carefully follow a rigorous recruiting method. That is to say, first, establish with accuracy the real need(s) of your company that the future employee should satisfy. Then, you will be able to write down precisely the job description and the profile you are looking for (a local Chinese, an overseas returnee, a foreigner…) As digitization is a field in evolution, it is no use to look for specific skills, albeit some basic background is of course required, rather you should be looking for potential. More than ever, recruitment is not about finding a good employee, rather about finding the right person to fit in your company and to hold your company’s vision. Here, analyzing motivations, mentality, and solving approach to new problems might be of a good use.

For more details on recruitment, you may refer to our recruitment department.

To sum up, digitization is happening in China and it opens new doors for products and services, but it also redefines the organization and the vision of each company. We strongly advise to take these steps now, not in an erratic and reactionary manner, but rather in an organized and well-thought strategy, engaging all departments of your company. Two main impacts are to be forecasted in HR: the upgrading of the teams, and the recruitment of new talents.

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