China, with its enormous market, is definitely one of the best places to expand your business. With its ever-increasing domestic market, remarkable business opportunities, high-quality infrastructure, and skilled workforce, the country captivate foreign investors. A Professional Employer Organization ("PEO") service offers flexible solutions for almost every sector. PEO services enable you to establish a team that will work in the field and completes the tasks you give to increase your online sales without establishing a company in China.
After seeing the advantages of the PEO service, many companies start building their growth plans in China on this system. Given the complexity of Chinese business laws, companies that receive PEO services can focus on succeeding and growing their business, leaving other risks and responsibilities to the professionals of the business.
PEO Solutions in China
For businesses engaged in e-commerce and online sales in the Chinese market, being able to serve in the field with their own team has really important advantages. A physical office and a team that provides local service always shows a sign of committment to the consumer. In addition, the logistics management, including warehouse and distribution processes, with your own team ensures that the operations are under your control and safety.
It is a strategic decision for the sustainability of your business and the growth potential of your company to have a physical presence in the Chinese market with PEO rather than remotely controlling the rapidly developing online sales business with a foreign team working remotely only.
What Is PEO In China
Professional employer organizations are human resources services shaped by customers' needs and workforce needs. PEO offers different types of employment models for each sector. Collaboration is made with customers on subjects such as human resources consultancy, risk reduction, security, employer payroll services, tax returns, health benefits, workers' compensation, liability insurance, retirement vehicles, and compliance assistance with the legislation.
Areas Where PEO Services are Most Used:
· e-commerce businesses
· Back office management
· Information Technology support
· Accounting, finance, payroll, audit
· Logistics services (storage, distribution)
· Customer relations, call center
· HR tasks
· Administrative works (file archiving, data entry, scanning services, etc.)
Start an Online Business Using a PEO Service
An online selling business is a business that can be carried out with a compact team, but allocating your human resources to experts who will perform the basic functions of the business provides an advantage for your company.
China is a really big market, and if your target will be not only the Chinese market but the whole world, establishing an online selling business requires very good planning and market research. In terms of foreign companies that will operate in China, there are difficulties such as the language barrier, Chinese labor law, and Chinese market dynamics.
Different regulations on employee rights exist throughout China or locally and are frequently revised by the government. Establishing an e-commerce company, employing the necessary personnel, and establishing an HR and accounting team causes you to devote your energy to legal and accounting work and document and paperwork control.
However, working with a PEO company allows you to get rid of a large part of your burden. The employees your company needs will work under your supervision and control, but the PEO firm will assume the employer's responsibilities on your behalf.
Advantages of using PEO
1. Flexibility
More effective employment according to the needs of the company
Outsourcing of administrative affairs and personnel management in accordance with the conditions of the Chinese market
Easy fulfillment of temporary/periodic needs
Opportunity to work with qualified personnel (sales specialists, engineers, regional managers, etc.)
2. Easy Management
Providing all the fringe benefits your employee will need (car rental, roadside assistance, meal allowance, private health insurance, life insurance) and expense management. All these processes are not your responsibility, so you can concentrate on areas that will increase the financial strength of your company, such as purchasing, marketing, and sales.
3. More Control
Working with a PEO service provider that provides all the necessary services for your operations in China allows you to focus your time and energy on your business plans and management strategies. You move faster when you are in control of your work. The e-commerce sector is an area that is progressing very rapidly and where you need to do business with minimal errors. If you are selling online, everything should be under your control. PEO gives you the opportunity to concentrate on your business with the solutions it offers.
4. Transfer of Risks Arising from Labor Law
Hiring staff without being a legal entity means that all risks and liabilities arising from employment are with the PEO firm. PEO solutions enable companies to quickly procure the qualified personnel they are looking for and focus on their business by avoiding routine HR procedures and corporate bureaucracy.