Foreign companies handling operations in China often seek service providers to navigate the intricacies of employment, payroll, and recruitment. Professional Employer Organizations (PEO) and Employer of Record (EOR) providers play important roles in assisting businesses in their HR operations in the Chinese market:
Role of an Employer of Record (EOR):
EORs in China take on the employer’s HR responsibilities for a company’s workforce. They handle payroll, benefits, and compliance, allowing companies to expand their global footprint without establishing a legal entity in China. Unlike PEOs, EORs will take on all liabilities related to your hired employee as they become the legal employer of your employee/s in China.
Role of a Professional Employer Organizations (PEO):
PEOs in China serve as co-employers, sharing employer responsibilities with the client company, and providing expertise in navigating local labor laws, payroll & benefits and regulations. Unlike EORs, PEOs will NOT take on all liabilities related to your hired employees in China meaning you must have a legal entity in China.
Most Important Criteria for an EOR in China
In the Chinese business environment, where regulatory compliance is paramount, the choice of an EOR holds substantial weight. Ensuring adherence to Chinese labor laws, a dependable EOR acts as a shield, safeguarding businesses from potential pitfalls.
For these reasons, the Employer of Record you choose to enter China with is crucial which is why we have made the first tier list of EOR & PEO providers in China. We will be ranking the service providers based on the 5 most important criterias for certified employment firms in China:
Do they have a legal entity in China or are they a middleman?
The most important factor in choosing an EOR service provider in China is whether or not the provider has a presence in China in the form of a legal entity, an office and enough employees to carry out HR compliance operations. If the company does not have any of these things in China, then it’s almost guaranteed that they are the middleman in the transaction which is, unfortunately, very common in the industry.
The pitfalls of using a middleman include:
- Communications hindered due to the middleman proxy between the client and the vendor.
- Middleman does not employ the remote employee under their own company. Thus your employee’s employment is dependent on the relationship between the vendor and the middleman.
- You are most likely paying a premium
- You don’t know what company is hiring your employees in China.
Do they have an EOR platform for clients to view records?
A payroll platform and secure database means all payroll data is safe and available as proof of payment and compliance with Chinese law. This not only brings a heightened level of convenience to clients, but also serves as a tangible compliance asset.
How long have they been operating in China?
Companies that have been in the business a long time in China have gone through everything from HR policy changes to employment disagreements, and have overcome it all over and over and continue to provide employment services for the same clients for years.
What is the average employee tenure of the company?
This mean that the service provider does a better job at retaining their own employees which means your account manager won’t change every other month and the operations team handling your dispatched employee’s payroll don’t keep changing.
Do they also offer recruitment services in China?
If you already have a candidate you want to hire in China, then this doesn’t need to be taken into account, but if you still need to find the right candidate in China before using an EOR, then might as well do it all with one company.
Employer of Record Providers in China Tiers List:
Service providers within the same tier are in no particular order.
S Tier: The Overall Best EOR providers in China
Employer and PEO service providers in the S-Tier are ahead of the curve, they are by far the safest and best options for companies looking to hire full time remote employees in China in full compliance. Backed up with long track records and high retention rates. These companies have a real presence in China backed up by an office and enough staff to support staffing and HR operations in the country. These companies also have their own EOR platform so that clients can check the payroll and contract details of their outsourced employees in China.
HROne
| HROne | Private company | |
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2005 |
| 4 | Median tenure | 7.8 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
HROne has been providing employer of record, payroll and recruitment services in China for over 18 years. The company focuses solely on China and specializes in providing services for overseas companies, featuring an in-house EOR & payroll platform, an HR legal team and a large recruitment talent pool of bilingual and experienced candidates for companies looking to hire.
HROne checks all the criteria of a reliable EOR and has an average employee tenure of over 7 years with account managers who have been working with the same clients for over 10 years.
FESCO Adecco
| FESCO Adecco | State owned company | |
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2010 |
| 4 | Median tenure | 5.6 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
FESCO Adecco, a collaborative venture between FESCO Group and the Adecco Group, emerged in Shanghai at the close of 2010. FESCO Adecco operates as a significant player in the human resources sector, combining the FESCO Group, a prominent Chinese company in human resources, and the Adecco Group, a global leader in talent advisory and solutions, listed in the Fortune Global 500.
Based in Shanghai, FESCO Adecco extends its services across China through regional branches in Chongqing, Zhejiang, Shenzhen, Suzhou, Shaanxi, and Hunan. Specializing in Corporate Outsourcing, Payroll Service & Dispatch, Recruitment, and Employee Welfare, FESCO Adecco caters to over 20,000 clients.
CIIC
| CIIC | State owned company | |
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 1987 |
| 4 | Median tenure | 10.7 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
Established in 1987, China International Intellectech Co., Ltd. (CIIC), a large state-owned enterprise under the purview of the Chinese Central Government, stands as the singular entity with human resource services at its core. With its headquarters situated in Beijing, China, CIIC has forged its presence globally with 126 subsidiaries and active involvement in economic, technological, and talent cooperation across 76 countries and regions.
A prominent name in China’s human resource sector, CIIC has earned recognition as a top 500 Chinese enterprise and a top 100 Chinese service enterprise. Serving as China’s comprehensive provider of human resource products and services, CIIC has solidified its position as a leading brand in the industry.
CDP Group
| CDP Group | ||
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2004 |
| 4 | Median tenure | 6.2 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
Established in 2004, CDP Group stands as a leader in Human Capital Management Software as a Service Plus (HCM SaaS+) platforms in China. Renowned for offering the most comprehensive scenario-based solutions, our business model and robust industry adaptability have paved the way for a diverse and high-quality customer base, characterized by recurring revenue streams. With over 900 customers spanning 45 key industry verticals, including healthcare, technology, and retail, CDP Group has solidified its position as a pivotal player in the HCM SaaS+ landscape.
A Tier: Great and Reliable EOR providers in China
ADP China
| ADP China | Publicly traded company | |
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 1949 |
| 4 | Median tenure | 4.4 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
ADP pioneers the way forward with state-of-the-art products, top-tier services, and extraordinary encounters that empower individuals to achieve their utmost potential. Covering aspects such as HR, Talent, Time Management, Benefits, and Payroll, ADP’s offerings are intricately informed by data and thoughtfully designed with people at the forefront.
It’s worth noting that ADP has a notable presence in China, contributing to the enhancement of work processes and human resource management in the region. This global leader extends its reach to support businesses and individuals in China, aligning with its commitment to providing cutting-edge solutions on a worldwide scale.
Horizon
| Horizon | Private company | |
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2018 |
| 4 | Median tenure | 2.1 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
Horizon offers employer of record and recruitment services in many countries around the world, including China where they were founded in 2018. Over the years, Horizon has quickly grown from a China based company to a multinational company with several offices worldwide, moving its headquarters to Berlin.
Horizon also checks all criteria for a reliable EOR provider in China. Despite offering services in many countries, they have a real office presence in China as well as their own EOR platform for clients to track their outsourced employees. They also offer recruitment services.
ManpowerGroup China
| Manpower Group China | Private company | |
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 1997 |
| 4 | Median tenure | 4.9 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
Commencing operations in Hong Kong and Taiwan in 1997, ManpowerGroup Greater China Limited has swiftly advanced its market presence. Currently, the organization extends its services to clients across more than 270 cities within the Greater China markets, with a network of over 20 offices. This strategic expansion underscores ManpowerGroup’s commitment to delivering comprehensive workforce solutions in the region.
Manpower group has the infrastructure of a reliable EOR provider in China, but their online platform is not the most foreigner friendly.
INS Global
| INS Global | Private company | |
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2006 |
| 4 | Median tenure | 2.3 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
INS Global is an EOR and recruitment provider, servicing over 100 countries particularly in the APAC region. Founded in China in 2006, INSGlobal checks all criteria for a reliable EOR provider in China, boasting a company and office in China as well as an EOR platform for clients to track their remote employees.
B Tier: Good EORs, but not the best in China
B-Tier EOR providers in China have an office address, but a questionable number of employees in the country.
GoGlobal
| GoGlobal | ||
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2018 |
| 4 | Median tenure | 1.6 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
GoGlobal is a international HR and Employer of Record (EOR) service provider founded in 2018 that services over 100 countries. They have their international HR platform, BlueOcean available for clients to look up their dispatched employee payroll data. GoGlobal has a legal entity in China, however the staff count in China is not as satisfactory as the A-Tier providers.
Safeguard Global
| Safeguard Global | Private company | |
| 1 | Has an Office in China | Yes, but staff count N/A |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2008 |
| 4 | Median tenure | 1.9 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
Safeguard Global is a company that specializes in global workforce solutions, helping businesses manage and expand their international workforce. Founded in 2008, they offer services such as global payroll, compliance, and advisory services to ensure that businesses can operate smoothly in different countries while adhering to local regulations. Similarly to GoGlobal, Safeguard Global has an entity in China and an Address, but undetermined staff count in China.
Globalization Partners
| Globalization Partners | Private company | |
| 1 | Has an Office in China | Yes |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2012 |
| 4 | Median tenure | 1.6 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
Globalization Partners is a company that provides global employment solutions, similar to Omnipresent. They offer services such as international payroll, compliance, and HR support to help businesses manage their global workforce more efficiently.
Globalization partners was founded 12 years ago in 2012, but the average employee tenure according to LinkedIn is only 1.6 years. There staff number in China is also lower than required for HR operations in China.
C Tier: Alternative options
C-Tier EOR & PEO providers in China do not have a trackable presence in China.
Omnipresent
| Omnipresent | Private company | |
| 1 | Has an Office in China | No |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2019 |
| 4 | Median tenure | 1.8 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | No |
Omnipresent is a company that focuses on providing global employment solutions. They help businesses employ and manage remote teams around the world, handling aspects like payroll, compliance, and HR support.
Skuad
| Skuad.io | Private company | |
| 1 | Has an Office in China | No |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2019 |
| 4 | Median tenure | 1.7 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | Yes |
Skuad.io is a platform that focuses on helping companies manage and scale their remote teams. It provides tools for remote workforce management, collaboration, and productivity.
Remote
| Remote | ||
| 1 | Has an Office in China | No |
| 2 | Has an EOR platform | Yes |
| 3 | Founded in | 2019 |
| 4 | Median tenure | 1.3 years (Source: LinkedIn) |
| 5 | Offers Recruitment in China | No |
Remote.com is a platform that provides global employment solutions, allowing businesses to hire and manage international remote workers. They offer services such as payroll, compliance, and HR support for remote teams.
State-Owned VS Privately Owned PEOs/ EORs
When comparing State-Owned and Privately Owned Professional Employer Organizations (PEOs) or Employers of Record (EORs), the key differentiating factors lie in their ownership structures, operational approaches, and regulatory implications. In China, these differences are particularly pronounced due to the unique regulatory environment and government involvement in business operations. State-Owned PEOs often have closer ties to government entities, which can provide certain advantages such as preferential treatment in regulatory matters or access to government contracts. However, they may also face limitations in terms of flexibility and innovation.
Privately Owned PEOs, on the other hand, operate independently of government influence, allowing for greater agility, innovation, and customization of services to meet client needs. While State-Owned PEOs may offer stability and government connections, Privately Owned PEOs may offer more tailored solutions and responsiveness to market demands. Ultimately, the choice between State-Owned and Privately Owned PEOs/EORs in China depends on factors such as regulatory compliance requirements, desired level of service customization, and strategic objectives of the expanding business.
State-owned PEOs/EORs in China:
Privately-owned PEOs/EORs in China:
- HROne
- Horizons
- Manpower Group
- ADP
- INS Global
selecting the right Employer of Record (EOR) provider in China is a crucial decision for businesses looking to expand their global footprint. Through our comprehensive ranking, we’ve highlighted the diverse offerings and capabilities of various EOR providers, each with its unique strengths and areas of expertise. Whether you prioritize regulatory compliance, scalability, or personalized service, there’s a provider to suit your specific needs.
By leveraging the insights provided in our ranking, businesses can make informed decisions to navigate the complexities of the Chinese market confidently. Remember, the success of your international expansion hinges on choosing a trusted EOR partner that aligns with your goals and values, ensuring a smooth and successful journey into the vibrant landscape of opportunities in China.
