We often talk about the obvious reasons to hire in China – managing supply chains, dealing with suppliers, quality control, and so on. But there’s a whole set of intangible benefits, too… things you won’t typically list in a job description, but they’re just as valuable in the long run.
As we’ve mentioned before, China plays by its own rulebook. This can make sourcing or managing operations here particularly challenging, especially if you’re directing things from another country.
This is where locally hired staff come in. They offer more than just the obvious business advantages; they bring a range of additional benefits that can significantly ease the complexities of doing business in China.
Here’s our top three not-so-obvious reasons for hiring a team member in China:
Understanding Local Policies
Local regulations play a massive role in doing business in China, and they’re anything but consistent. Take maternity leave benefits as an example – they’re different from province to province.
Most of these nitty-gritty local rules don’t get translated into English. It’s not surprising – they’re hardly bestseller material, and they only apply to specific cities or districts. So, nobody bothers translating them.
This creates a right headache for smaller companies trying to figure out the lay of the land.
Let’s use Ningbo as an example, a massive port city near Shanghai. You’d think they’d have a single city-wide minimum wage, right? Wrong. It’s a postcode lottery – 2,490 yuan per month in most districts, but only 2,260 yuan in rural areas.
This information was right there on Ningbo’s official Chinese-language website. However, when our researchers checked English sources? They were all wrong, listing just a single figure (and often contradicting each other).
And that’s just the tip of the iceberg. There are equally consequential but even more obscure regulations to consider, like high-temperature subsidies or claiming export tax rebates.
Fortunately, this is precisely the kind of information that someone fluent in Mandarin can quickly uncover – potentially saving you from running afoul of regulators. Having someone who can cut through the red tape and language barriers is worth their weight in gold.
Smoothing Out Business Travel
Another area where in-country staff can be a real asset is in planning and managing your business trips to China.
According to a survey by business travel agency SFBC, 80% of foreign business travelers admit their efficiency suffers greatly without local support. The main culprits? Language barriers, visa headaches, and general confusion about how things work in China.
As a result, the business travel management market in China has grown significantly, reaching 305.4 billion yuan ($42 billion) in 2023. That’s a substantial investment in trying to streamline these trips.
Another common approach is to let suppliers handle logistics like airport pickups and hotel reservations. However, this can make you feel like a guest rather than someone in control.
Some business travelers, frustrated with suppliers and agencies, might consider taking a DIY approach. This can be a rookie mistake, though. What seems cost-effective at first glance could mean leaving money on the table, especially in China, where experiences can vary greatly.
For instance, English versions of travel apps like Trip.com often serve as a tourist trap. They frequently charge higher rates for domestic flights compared to their Chinese counterparts. It’s well-known to locals that booking flights on platforms like Ctrip (携程) can lead to significant savings.
One of our clients opted for a different approach, having a local employee arrange their trip, which went off without a hitch. Why? Because an employee knows you, understands your business, and is familiar with your industry.
You can have detailed discussions about expectations and plans well before you arrive. This level of personalization and understanding is something you simply can’t get from a supplier or a travel agency.
Plus, having a local team member who can communicate effectively in Mandarin makes all the difference. It helps avoid misunderstandings and ensures smoother interactions with customers, suppliers, and partners.
Having someone on the ground makes your China trips not just easier, but significantly more effective.
Handling Small-Scale Business Tasks
Beyond the big-picture benefits, having someone on the ground in China can be a lifesaver when it comes to the day-to-day operations of your business.
Managing small-scale business tasks in China – like shifting samples around, handling local paperwork or communicating with suppliers – can be tricky without local expertise. One specific area where this becomes clear is in logistics.
Let’s use Huolala as an example. It’s a logistics service in China similar to Yodel or Roadie, providing same-day delivery and other courier services. While it’s efficient for moving items and sending samples, it comes with its own set of quirks.
A major challenge is the murky pricing for extra services like loading and unloading, leading to surprise fees for tasks assumed to be included. Difficulties with drivers are also common, from delayed pickups to inadequate help with heavy items. For those not fluent in local customs and language, these issues can escalate quickly.
While delegating these tasks to suppliers might seem like a solution, our experience suggests that having your own staff on the ground is often more effective. Local employees can provide oversight, ensuring transparency and cost control. They can keep an eye on things, make sure you’re not being taken for a ride, and smooth out any wrinkles that pop up.
This isn’t just about moving boxes, either. Whether it’s ordering office kit on Taobao or whatever else crops up, having a local employee on your side is like having a Swiss Army knife for your operation.
Bringing Local Expertise to Your Business
These are just a few ways hiring local staff in China clearly offers benefits beyond the obvious.
However, one thing that puts people off hiring in China is that setting up an entity to employ staff is time-consuming and costly.
That’s why we suggest using an Employer of Record (EOR) service. This approach gives you all the benefits of hiring somebody without the hassle of handling the business admin yourself.
Interested in learning more about how an EOR can help you hire in China efficiently? Take a look here!
