HR management in China: how to choose your strategic partner

The expansion of companies in emerging markets such as China presents unique challenges, especially in the field of human resources management. China's notoriously complex and fast-changing regulatory system requires special attention when managing HR and payroll activities.

Outsourcing HR and payroll functions becomes a vital strategy. It provides expanding companies with indispensable support, ensuring compliance with local regulations, reducing the risk of errors and optimising processes, allowing them to concentrate on core activities in a constantly growing market.

We discuss this in today's article, with a focus on Diacron's exclusive HR management services in China.

HR management in China: why outsource to a strategic partner?

HR management is a decisive asset for a company that is expanding abroad; however, it remains a very complex subject.

Managing an international workforce entails different skills and know-how specialised in human resources and personnel management activities. The main challenge in China is legislation, which is not only particularly complex, but also constantly undergoes changes and updates.

Dealing with these aspects internally is quite costly and requires a lot of energy. Moreover, one often lacks the knowledge and the right resources to manage processes, which are strategic for the achievement of important business goals.

Delegating HR functions to specialised accounting, tax and corporate partners is the key to dealing with every aspect of the subject matter accurately, efficiently and on time. Subject-matter expert consultants have the necessary knowledge of the Chinese jurisdiction's regulations and make it available to companies with the aim of improving their business performance.

A key element in the outsourcing of accounting, tax and corporate services has to do with the management of sensitive employee data. When a company decides to outsource these services, it is implicitly investing in the security of its employees' personal and financial information. This approach ensures that sensitive information such as salaries and other employee data remains confidential, accessible only to top management. In this way, the organisation ensures that such information remains protected, thus safeguarding employee privacy and maintaining an ethical and professional working environment.

By delegating such services to specialised partners, the company implicitly invests in the security of its employees' personal and financial information, ensuring that sensitive information such as salaries remains confidential and accessible only to top management. This approach protects employee privacy while maintaining an ethical and professional working environment.

Diacron's added value in HR management in China

Diacron Group is a company founded in 1995, specialising in corporate, tax and accounting services. It focuses on assisting entrepreneurs and companies in international expansion, offering support in various areas such as accounting management, tax advice, and corporate reorganisation.

Among the services offered is HR management: the company proposes the outsourcing of these functions, with the aim of increasing the accuracy, efficiency and security of procedures. This service is particularly relevant in international contexts, such as China, where the diversity of rules and regulations can make the administration of activities very complex.

And it is precisely in China - where Diacron has had a presence since 2004 in Shanghai and since 2020 in Shenzhen - that its offices offer valuable support to clients who are expanding their companies in the country and need comprehensive HR process management. In addition to reorganisation services and tax, corporate and accounting consultancy, Diacron therefore provides a team of HR management advisory and assistance experts.

Here is an overview of the services offered:

• payroll management
• general advice on HR regulations
• procedures for opening and closing individual contribution accounts
• leave management and recording of information and data provided by the customer
• administrative support in the onboarding procedure for new employees
• drafting of offer letters, employment contracts and contract annexes, warning letters, redundancy notices and termination agreements, based on legal advice and/or according to a standard format
• contact with the labour office and other offices in relation to HR matters
• archiving of employee documentation and employment contracts
• audit and review of human resources

To learn more about all the services, download the brochure on Diacron's HR services for companies in China:

Click here