Human Resource Outsourcing in Small and Medium-sized Enterprises(SMEs)of China

In recent years, small and medium-sized enterprises (SMEs) of China have outsourced an expanding variety of activities in an attempt to increase their core competencies, and enhance organizational effectiveness. This paper described and compared routine human resource management flow of SMEs in China before and after outsourcing. It has found how human resource outsourcing helps save manpower and time. The survey of SMEs in Hangzhou shows that business distribution of human resource outsourcing in SMES mainly covers employee recruitment and training (56%), salary and welfare management (25%), and labor dispatch (10%). The industrial distribution is mainly IT (23.8%), manufacture (19%), clothing (16.7%), electronic instrument (11.9%) and real estate (7.15%) in 2008. It can be expected that human resource outsourcing will get a substantial development in SMEs of China in near future.