HR Due Diligence
In China’s intricate regulatory and cultural landscape, effective human capital management is not just a foundation for compliance—it’s a strategic asset that can make or break your success. Our HR Due Diligence service delivers a meticulous, expert-driven assessment of your workforce structure, compliance practices, and organizational culture, designed to inform critical business decisions, whether in M&A, market entry, or operational optimization.
Built on deep expertise in Chinese labor law, HR norms, and local market intricacies, we evaluate every dimension of your people operations. From employment contracts and compensation frameworks to talent retention and cultural alignment, we focus on uncovering hidden risks, safeguarding investments, and uncovering opportunities to enhance operational resilience. By transforming labor complexity into strategic clarity, our service helps protect your interests and ensure your workforce becomes a lasting source of competitive advantage in China’s ever-evolving business environment.
Via our HR due diligence services we assess workforce capabilities, compliance, and culture in China. We support you identifying risks, safeguarding investments, and unlocking opportunities for sustainable organizational performance and competitive advantage.
- Evaluate organizational structure, headcount distribution, and reporting lines in China operations.
- Review employee demographics, skills distribution, and succession pipeline.
- Identify key personnel, critical roles, and dependency risks.
- Assess employment contracts for compliance with PRC Labor Law, Labor Contract Law, and local regulations.
- Review compliance with working hours, overtime, minimum wage, paid leave, and termination procedures.
- Examine adherence to social insurance and housing fund contribution requirements.
- Benchmark salary structures against Chinese market standards and industry norms.
- Review incentive programs, bonuses, allowances, and non-cash benefits.
- Assess alignment of benefits packages with legal requirements and market competitiveness.
- Review employee handbook and internal HR policies for legal compliance and cultural fit.
- Assess policies on recruitment, performance management, grievance handling, and disciplinary actions.
- Identify inconsistencies between corporate global policies and Chinese legal/cultural realities.
- Analyze employee relations climate, union presence, and collective bargaining agreements.
- Review historical and pending labor disputes, arbitration cases, and litigation risks.
- Identify potential reputational or operational risks related to workforce unrest.
- Examine historical turnover rates, exit interview data, and causes of employee attrition.
- Assess retention risks for key staff and leadership in China.
- Recommend targeted retention strategies for critical talent.
- Evaluate cross-cultural alignment between headquarters and China operations.
- Assess management style, communication effectiveness, and employee engagement levels.
- Identify cultural integration challenges in post-M&A scenarios.
- Review HR information systems, payroll processing, and personnel record accuracy.
- Assess data privacy and cybersecurity compliance in line with China’s Personal Information Protection Law (PIPL).
- Evaluate efficiency and automation levels of HR processes.