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Common Issues

Companies in China often encounter the following issues relating to human capital:

Turnover rate is high. People in China switch jobs much faster than the western world. There is an overall difficulty to retain people.
Job market is not transparent. Qualities of new hires vary a lot.
Every different province adopts a different social security scheme. For many new comers, it is easy to neglect the social security cost in addition to an employee's gross pay, which could be an addition cost of 40-60% on top of the total pay.
As China develops, employees' cost structure changes very fast.
Payroll system is not automated, and heavily relies on manual work. It increases the processing cost as well as leads to the issue of confidentiality.
Individual income tax rate in China is among the highest in the Asia Pacific Regions, careful planning
It is difficult to implement a global equity based compensation plan in China due to the foreign exchange restrictions.
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