Employer of Record (EOR) services: Hiring employees in Hong Kong

Looking to hire employees in Hong Kong? An EOR can help.

Hong Kong, a global financial hub and a gateway to the Chinese market, offers numerous opportunities for businesses looking to expand their operations in Asia. With its strategic location, world-class infrastructure, and highly skilled workforce, Hong Kong is an attractive destination for international companies.

If you’re looking to expand your business’s presence in Hong Kong, an Employer of Record or EOR can help you navigate the complex regulatory landscape and streamline your hiring process. By partnering with an EOR, you can quickly and efficiently hire talent in Hong Kong, without the establishment of the all-important legal entity to do so.

Put simply, an EOR is the legal employer for your Hong Kong workforce, handling all HR and compliance tasks. You maintain control over all other daily activities and strategic decision-making for the business.

Why choose an EOR for hiring in Hong Kong?

Employers of many kinds, from small businesses to medium-sized enterprises, looking to expand into Hong Kong may lack the in-house expertise and resources to figure out the complex regulatory landscape there. By partnering with an EOR for global expansion, businesses can streamline their operations and focus on core competencies.

By engaging with an EOR to make new hires in Hong Kong, organizations can achieve the following:

• Hire and onboard top talent rapidly in Hong Kong without having to establish a local entity using your own in-house resources.
• Streamline HR operations by outsourcing payroll, benefits, and compliance tasks.
• Ensure compliance with Hong Kong’s complex labor laws and regulations, greatly mitigating legal exposure.
• Offload HR and compliance responsibilities to the EOR, empowering you to focus on other business objectives.

An EOR serves as the legal employer for your Hong Kong workforce, taking on HR and compliance responsibilities. This allows you to concentrate on your core business while maintaining regulatory compliance.

Choosing between an EOR and PEO in Hong Kong

Employers have two primary choices for expanding as fast as they can into Hong Kong: an EOR and a professional employer organization, or PEO. To make an informed decision, you need an understanding of the major differences between an EOR and PEO.

Going with an EOR makes much more sense if the employer want to delegate all risk for compliance with employment law in Hong Kong.

How to select the right EOR provider in Hong Kong

When selecting which EOR is best for your expansion into Hong Kong, several key factors should be considered. The wrong EOR choice can result in compliance difficulties, costs you could have avoided, and a bad experience for your workforce.

It’s essential to assess the EOR’s understanding of Hong Kong’s complex labor laws, regulations, and cultural nuances.

Look for the EOR’s

• Expertise in legal compliance: The EOR must have a deep understanding of Hong Kong’s complex labor laws, regulations, and cultural nuances. Look for a provider with a proven track record of handling compliance challenges in Hong Kong specific to your industry.
• Customer service: A reliable EOR should offer exceptional 24-7 human-first support and dedicated account managers for every customer. Multiplier has these and doesn’t resort to bots.
• Transparent pricing: Due diligence will help you avoid hidden fees and unexpected costs. Many EORs seem like a bargain at first, but the fees can balloon later. Choose one with clear and transparent pricing models. Make sure to determine your EOR’s associated costs exactly before making a decision.
• Total cost of ownership: While initial costs are important, it’s crucial to consider the long-term value and additional hidden costs associated with an EOR provider and that might surface down the line. Avoid choosing a bargain-basement provider that may compromise on quality of service or compliance. Instead, invest in a reliable EOR that can deliver exceptional value and minimize risks.

How EOR services work in Hong Kong

Step 1: Send that contract over

Once you’ve found the perfect candidate and the perfect EOR, a locally compliant employment contract can be generated very rapidly. Multiplier’s automated HR functions create these contracts in less than five minutes and ensure that they’re fully compliant with Hong Kong labor law. Afterward, you can customize terms such as job responsibilities, working hours, remuneration, and conditions for termination. The EOR will then securely send the contract for signature, streamlining the onboarding process.

Step 2: Enhance compensation with competitive benefits

To attract and retain top talent, you’ll definitely want to offer a competitive benefits package. Your EOR can help you select suitable benefits that align with local regulations and employee preferences, which means you won’t have to vet a potentially very long list of local providers yourself.

Step 3: Get all your documentation in order

To streamline onboarding, Multiplier will collect the necessary documentation to set up payroll. This will include tax and banking information to ensure a smooth and efficient start for your new hires.

Onboarding employees in Hong Kong can be complex, but with an EOR like Multiplier, it’s under control.

Step 4: Run payroll for employees based in Hong Kong

Processing payroll in Hong Kong is complex with tax rates and contributions, as well as country-specific regulations. By partnering with an EOR, you can ensure accurate and timely salary payments while Multiplier handles all local taxes, contributions, and withholdings. With Multiplier’s global payroll solution, you can manage payroll for your entire workforce worldwide from a single point.

Step 5: Manage your employees and leave HR compliance to the EOR

Multiplier takes care of all aspects of post-hire onboarding and payroll. This helps to ensure that your Hong Kong employees receive timely and accurate payments — from the first paycheck to the last. Multiplier will also manage terminations and voluntary leaves to comply with local labor laws.

Moving forward with Multiplier EOR in Hong Kong

For businesses looking to expand quickly into Hong Kong, going with an EOR is a highly advisable move. By outsourcing HR and compliance functions to an EOR, you can streamline operations, mitigate risks, and focus on higher-level activity for the business.

Comprehensive, Multiplier’s Employer of Record (EOR) services help you expand your workforce in Hong Kong efficiently and on short notice. You can hire top talent without the need to establish a local legal entity all by yourself.

Multiplier ensures smooth hiring, onboarding, and employee management processes and produces locally compliant contracts. Multiplier also handles managed payroll and can source for you a range of customizable benefits tailored to Hong Kong standards.

Book a demo today to learn how Multiplier can help you achieve your global expansion goals in Hong Kong.