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Ready to Outsource Your Human Resources?

Outsourcing your human resources remains something new to Chinese enterprises although it is a common practice in a developed human resource market.

At the 2005 China HR Outsourcing Forum held in Shanghai, human resources managers from Beijing, Shanghai and Taiwan talked about the prospect and obstacles of China's outsourcing market. From Shanghai, CRI's Wang Jing has more.

In our growing global economy, human resources are becoming increasingly complex and resource-intensive. Companies tend to turn to certain human resources outsourcing solutions to save time and money by having an outside firm handling much of the mechanical functions of human resources, such as payroll, benefits, tax filings and workers' compensation compliance.

Wang Hui has been working in service trade with the China International Intellectech Corp. for many years. She says most of their clients are foreign enterprises in China.

"Foreign enterprises still outnumber domestic companies who turn to outsourcing solutions. And our domestic clients are mainly banks and insurance companies. Small businesses seldom turn to us, although we believe outsourcing will do good for them."

Having human resources outsourced is believed to remove the burden of managing back-office functions and improve efficiency.

Outsourcing can also effectively reduce certain risks surrounding employer compliance.

But Wang Hui says most people understand outsourcing simply as a way of avoiding labor disputes.

"Many companies want to shake off possible labor disputes so they turn to us. But the essence of outsourcing human resources is to help them reduce cost and get more competitive."

She adds currently, most companies only outsource basic employment procedure like providing profiles and setting up social insurance.

But human resources managers are also confident that China¡¯s huge employment market and growing business activities will make human resource outsourcing a popular practice in the near future.
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