HR Management Tools for China- Preview

2 Introduction ADAM LIVERMORE Partner Dezan Shira & Associates Dalian Office Rapidly rising labor costs are almost universally considered one of the biggest challenges of doing business in China. Foreign investors are responding to this phenomenon in different ways. Many new market entrants are setting up in inland China, where wages are lower and local governments frequently offer investment incentives. Even established businesses in China are increasingly relocating their operations to lower cost jurisdictions in cases where their costs have become unsustainable. However, for many investors, China’s more developed coastal regions – where labor costs are the highest – remain the most effective options for their needs. In these areas, businesses benefit from a skilled and experienced labor pool, and are beginning to tap into a new generation of highly educated and internationalized young talent. Regardless of their location, businesses of all stripes are implementing technology like automation and ERP systems to make their HR management more efficient. As labor costs continue to outstrip growth in productivity, successfully integrating technology into HR management makes business operations more transparent and productive, and can free up more resources to invest in talent. In this issue of China Briefing magazine, we take a closer look at these labor-related issues in China.We begin by comparing labor costs across China, and look at ways foreign investors can optimize expenses. Then, we explain how to create an HR strategy for relocating a business in China. Next, we look at why businesses are beginning to automate HR and payroll processing, before considering at what stage businesses should adopt ERP systems. We hope this magazine helps your business effectively manage its China-based workforce. With kind regards, Adam Livermore Credits Publisher / Alberto Vettoretti Managing Editor / Adam Pitman Editor / Qian Zhou, Dorcas Wong, Bradley Dunseith Contributor / Allan Xu, Phoebe Yan, Thomas Zhang Design / Kking Lu Reference China Briefing and related titles are produced by Asia Briefing Ltd., a wholly owned subsidiary of Dezan Shira Group. Content is provided by Dezan Shira & Associates. No liability may be accepted for any of the contents of this publication. Readers are strongly advised to seek professional advice when actively looking to implement suggestions made within this publication. For queries regarding the content of this magazine, please contact: editor@asiabriefing.com All materials and contents © 2018 Asia Briefing Ltd. Asia Briefing Ltd. Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong. www.asiabriefing.com www.dezshira.com www.aseanbriefing.com www.india-briefing.com www.indonesiabriefing.com www.vietnam-briefing.com www.china-briefing.com