For those relocating to China, the change in culture can come as much more than just your average culture shock, but rather it may feel more like a cultural Tyson uppercut that some never fully recover from. From the moment one steps off the plane at a Chinese airport the differences can be shocking, with the situation being no different when one steps into their new China office for the first time (intriguing office attire and company-wide naps aside).
With China recently experiencing a high rate of turnaround for skilled foreign staff, it is particularly important for foreign businesses operating in China to offer an attractive employee benefits program so as to keep your employees happy, healthy, and most importantly, with you! Otherwise, they may be packing their bags for home and hailing a taxi to the airport much sooner than anticipated.
Until recent years, employee benefits have not at all been a major focus within China as local urban employees often found themselves filled with a sense of blind loyalty to their company, content just to be working in the city rather than the countryside. However, the National Bureau of Statistics in China has shown especially high growth rates in the middle income market since 2000, particularly in urban areas where citizens enjoy an amount of disposable income that is four times higher than the net income of their rural counterparts. This, coupled with increasing (though resisted) influence from the expatriate community has resulted in white-collared local workers focusing more on their employee rights and benefits, leading employers to do the same and also pay more attention to the expectations of expats towards their employee benefits.
In the current market many companies only offer the minimum compulsory social insurance for expats, sometimes along with an extra medical insurance plan which is usually only suitable for government hospitals due to low benefits, or perhaps a Personal Accident Insurance which only covers accidents that result in permanent injury. In some cases, companies will look to pre-purchasing discounted medical treatment at certain hospitals for their employees to use as required which usually results in a big headache for all involved as the employee has no choice of medical provider (potentially creating liability issues for the company if the employee is mistreated at the provided hospital) unless they are prepared to fork out their own cash at another hospital or clinic.
However, more and more companies are starting to look at an overall employee benefits package, not only to attract higher quality staff, but also to help retain those already with the company. It is even possible to develop an international employee benefits package so that the benefits extend globally for any travelling or expat staff you may have. In addition to medical insurance, an employee benefits package can also include any or all of the following:
An attractive employee benefits program can greatly benefit your business both from a financial, and a social perspective as well. By increasing staff retention, reducing sick days, and reducing the time positions are left unfulfilled, production and efficiency are increased whilst saving on costs involved in the recruitment process.
Furthermore, a comprehensive benefits program can project a much more positive image of your business onto your stakeholders, building your reputation and creating further value for your company.
The best practice when it comes to establishing an employee benefits programme can differ greatly from industry to industry, and can even depend on company size. CCW has extensive experience in developing cost-effective employee benefits packages that help to create a more positive and efficient workplace without sacrificing the interests of your business.
By building your employee benefits programme with CCW, you have a single contact point for any and all services purchased, which is what we are all about – simplifying insurance. To find out more about how we can help you increase staff retention, decrease recruitment costs, and attract a higher quality of personnel please complete the short form at the top of this page.
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