Why do multinational corporations need human resources outsourcing services now

Human Resource Outsourcing (HRO) refers to the practice of outsourcing some or all of a company’s human resource management tasks to a professional outsourcing company. This approach is adopted to improve efficiency, reduce costs, mitigate risks, and focus on core business activities. It also allows for unified management and coordination of employees from different countries, aligning with the company’s global strategic goals.
Foreign companies investing in China face several human resource management challenges, including:

• Legal and regulatory differences: China’s labor laws, social insurance, and tax regulations may differ significantly from those of the countries where these enterprises are located. Foreign companies must understand and comply with Chinese regulations to avoid legal disputes.
• Cultural differences: The cultural differences between China and the countries where these companies are located, such as values, communication styles, leadership styles, and work habits, require foreign companies to respect and adapt to Chinese culture. This includes developing cross-cultural communication and collaboration skills.
• Talent market competition: China’s talent market is full of vitality. Foreign companies must compete with local and other international companies for top talent. In order to attract and retain skilled employees, foreign companies need to develop competitive compensation, career development, and employee care policies.
• Talent market competition: China’s talent market is full of vitality. Foreign companies must compete with local and other international companies for top talent. In order to attract and retain skilled employees, foreign companies need to develop competitive compensation, career development, and employee care policies.

Which one should you choose, EOR, PEO, or headhunter?

	Record Employer (EOR)	Professional Employer Outsourcing (PEO)	Headhunting
Main Purpose	Provide local employment and management services for companies without registered entities in China.	Outsourcing of the entire human resources department. Provide comprehensive human resources services to all employees, including salary, benefits, and compliance.	Search and recruit talents for high-end or key positions in the company.
Employment Relationship	The recording employer is a legitimate employer responsible for compliance and salary payment.	Joint employment relationship, where PEO and the client company share certain employment responsibilities.	Usually focused on permanent placement.
Cost structure	1. Service fee: 10% of the total salary and social security fees paid to employees. 2. Salary management fee: 300 yuan/person/month. 3. Deposit: 2 months’ salary (used as potential compensation for any economic losses).	Monthly management fee: 300 yuan/person/month.	A one-time fee based on successful recruitment (usually around 20% of the employee’s annual salary).
Relationship with employees	The nominal employer has a direct employment relationship with the employee, but the recruiting company has management authority.	The direct employment relationship between the employing company and its employees.	No direct employment relationship; The company signs contracts with employees.
client control	The client retains operational control, while EOR handles administrative and legal matters.	PEO shares control with clients, but manages human resources functions, salaries, and benefits.	The client company directly controls the recruitment process and the candidates hired.
service content	This service will include salary payment, personal income tax declaration, social insurance withholding, legal compliance, etc.	Including compliance with onboarding and offboarding procedures, including personnel compensation management, record keeping, social insurance compliance, compensation solutions, and benefit management.	If the expected employee fails the probationary period, a new candidate will be provided.
Typical use cases	It is very useful for companies to explore new markets or deal with international employment issues.	Suitable for companies seeking comprehensive human resources solutions, especially small and medium-sized enterprises.	Used when the company requires specialized senior talents to hold key positions.

When should I choose to record my employer (EOR)?

Nowadays, the business environment is complex and ever-changing, and companies must focus on their core areas of expertise in order to thrive in their careers. With the right talent, you can acquire new customers, build capabilities, narrow skill gaps, test new markets, or develop new products.
If your company is exploring new markets or operating in multiple countries, EOR can help you cope with complex international employment regulations, compliance, and wage requirements, allowing your company to focus on core business activities. This is particularly beneficial for organizations that wish to streamline operations and offload non core functions, as it brings more advantages than hiring them directly within the company.

When to choose Professional Employer Outsourcing (PEO)?

Choosing a Professional Employer Organization (PEO) based on your business needs and goals can be advantageous in various situations. If you are a small to medium-sized enterprise lacking a dedicated human resources department, PEO can provide a full range of human resources services, including payroll processing, benefits management, compliance management, and employee relations. PEO typically achieves cost savings through economies of scale. By bringing together employees from multiple clients, they can negotiate better benefits and insurance rates, thereby saving potential costs for your business.

When to choose a headhunter?

Headhunters actively seek and recruit talents who may work elsewhere. The company typically collaborates with headhunting agencies, who will target and approach ideal individuals on behalf of the employer and provide job opportunities.
The main advantage of headhunting is that it enables companies to find and recruit highly skilled talents. By taking proactive actions, you may come into contact with ideal candidates who do not want to find a new job or change jobs. This will undoubtedly expand your talent pool, which will truly benefit your company when your position requires specific skills or expertise. In addition, due to highly targeted candidate requirements, headhunters can be more timely.

Why choose Simon as your human resources partner?

Simon has an experienced team of human resources experts who can help you build a wide range of solutions and provide you with the best service to access the best talent in the market.
Whether you are looking for permanent positions, temporary employees, or contract employees, you can work with Simon to find the most qualified candidates, especially in Simon’s EOR services. Let’s see what content can be included in our service!

• Employee Recruitment: Representing your company to sign labor contracts with employees, including employment, extension, termination, regularization, etc., and providing follow-up contract management services.
• Follow the onboarding and offboarding procedures.
• Comprehensive compensation solutions and benefits management.
• Employee Management: Maintain employee records, manage attendance, bonuses and allowances, manage expenses and claims, and manage leave in accordance with local laws.
• Social insurance compliance services: Purchase and manage employees’ social insurance in accordance with local labor laws.
  Salary payment: Collect salaries and social insurance funds from customers, and manage the payment of employee salaries.

Why choose Simon?

Rapid Processing

With experienced team members, we can handle your project faster than others.

Unsuccessful, no charge

Simon promises that we will only charge after your project is successfully completed.

Tailored services

We will provide the most suitable business plan based on your situation.

Traceable process

Simon has an online system for you to track any updates to the project.

Frequently Asked Questions

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