With the increasing demand of hire developers in China, more and more foreign companies are looking to expand their operations in China. This article is going to give you a guide of the cost-effective and efficient way for companies to access the software talents they need to grow their business in China and hire developers in China in a compliance and efficient method.
1. Why foreign companies are eager to hire software developers in China?
2. Different ways for foreign companies to hire software developers in China.
3. What is China PEO or China EOR?
4. Steps to using China PEO to hire software developers in China
Why foreign companies are eager to hire developers in China?
- Large Talent Pool: China has a large and growing pool of highly skilled software engineers, making it easier for companies to find the talent they need.
- Cost Effectiveness: The cost of living and salaries in China are lower compared to other developed countries like US, Europe, making it an attractive destination for companies looking to cut costs.
- Rapidly Developing Technology Scene: China has a rapidly developing technology scene and is home to many innovative tech companies and start-ups. Hiring software developers in China gives foreign companies access to this ecosystem and the opportunity to tap into the latest advancements in the industry.
- Growing Market: China has a huge and rapidly growing market, making it an attractive destination for companies looking to expand their business. Hiring software engineers in China allows companies to take advantage of this growth and develop products and services tailored to the Chinese market.
Different ways for foreign companies to hire developers in China.
1. Hire developers in China directly through your China Entity.
For foreign companies who already have an entity established in China or planning to hire software engineers directly after the China company established. Below are the most common ways to hire and find software developers.
This involves advertising job vacancies through Chinese Job Portals, sourcing and interviewing candidates, and directly hiring employees. This option requires a significant amount of time and resources and can be challenging for foreign companies unfamiliar with Chinese labor laws and cultural differences.
Recruitment agencies can help companies find and hire software developers in China by sourcing, screening, and interviewing candidates. Companies can choose from a variety of recruitment agencies that specialize in different industries and job types.
If you already have a legal entity in China, you can read this article to understand the important tips of hiring in China.
2. Hire developers in China without a legal entity established in China.
China Professional Employer Organization (China PEO) or China Employer of Record (China EOR): PEOs can help companies hire employees in China by acting as the legal employer and handling all HR functions, including candidates sourcing, China payroll, China social benefits, and compliance with Chinese labor laws when foreign companies have no legal entity in China. PEOs can help companies save time and resources by handling the administrative aspects of the hiring process with no legal entity required in China.
Freelance Platforms: Freelance platforms such as Upwork and Freelancer offer a convenient way to find and hire software developers in China. Companies can search for and hire developers based on their skills and experience and can negotiate terms and conditions directly with the developer. However, there is employment and tax compliance issue of hiring freelancers in the platform.
Hiring software developers through a China PEO or China EOR solution is more recommended if foreign company has no China legal entity or has no plan to setting up a China legal entity in China. This solution is flexible and ensure the employment compliance in China.
Read more about How to Hire Employees In China Without Legal Entity?
Complete Guide on China EOR – China Employer of Record
What is China PEO or China EOR?
PEO stands for Professional Employer Organization. It is a type of outsourcing service that allows companies to outsource certain HR functions, such as employment, payroll, benefits administration, and compliance with labor laws.
China PEO, also known as China Employer of Record, is a specific type of PEO service that is designed to help foreign companies hire employees in China when they have no legal presence in China. With China PEO, the PEO company becomes the legal employer of the employees in China and is responsible for handling all HR functions, including payroll, social benefits, and ensure compliance with Chinese labor laws.
Read more about What is China PEO & China EOR? How does it work in China?
Steps to using China PEO to hire software developers in China
- Choose a reputable local China PEO service provider. An experienced local China PEO service provider is better than a global service provider as they are more familiar with the local environment and policies.
- Define job requirements and responsibilities: Clearly define the job requirements and responsibilities of the positions you want to fill.
- Post job advertisements: Work with the China PEO provider to post job advertisements in relevant Chinese job portals to reach potential candidates.
- Screen candidates: China PEO provider will screen the candidates and arrange for interviews with the hiring company.
- Hire employees: Once the hiring company has selected the best candidates, the China PEO provider will handle the onboarding and hiring process, including preparing and signing employment contracts, processing payroll, and enrolling employees in local social benefits programs.
For detailed steps of engaging a PEO in China, please read this article.
It is important to choose a reputable and experienced China PEO provider to ensure compliance with Chinese labor laws and to avoid any potential legal and financial consequences.
In conclusion, China has a great number of good software talents with cost effective hiring costs. Partnering with a China PEO to hire developers in China is a smart business strategy that can help companies tap into the country’s pool of talented software developers while minimizing the risks and headaches associated with setting up an independent operation. By leveraging the expertise and resources of a China PEO, companies can focus on what they do best, while leaving the administrative and HR functions to the professionals.
About JSC – China PEO & Employment Expert.
JSC is a professional service company that assists foreign-invested companies in doing businesses in China.
Our core services China PEO and employment solution enables foreign investors to hire employees in China without setting up any company which allow them to expand into China market in days, not months. Our in-country local experts are also experienced in assisting businesses to compliantly establish their own legal entity in China.
Please contact us if you require any other information on China PEO.