Managing Your Human Capital

In this issue of China Briefing, we take a look at human resources and how foreign-invested companies in China can better manage them. Hiring and retaining competent and efficient staff is one of the keys to managing a successful business on the mainland. Those who are able to attract and keep such employees are instantly in better shape than those who constantly have to battle staff retention and turnover. We first look at how to best manage human capital; creating an effective exit strategy for all employees, understanding the ramifications of the 2008 Labor Contract Law and knowing when and how much compensation needs to be paid to terminated employees. We then discuss options for outsourcing HR functions to third party provided. Finally, we clarify a common misunderstanding concerning "FESCO." It seems that many managers working at foreign-invested companies are under the impression that this is one company with branches all over China. The reality is quite a bit more complex.