High turnover rate
The entry threshold of front-line employees is low and the competition is fierce in food and beverage, chain fast consumer goods, financial real estate and other industries, with a high turnover rate remains unchanged under the impact of performance appraisal pressure. In addition to the turnover cost and recruitment cost, other flow costs such as productivity loss will be incurred thereby to an enterprise.
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Scattered regional distribution
It is reported that the total number of Chinese enterprises is close to 4.3 million, 50% of which have 2-3 branches, and 5% of which have more than 4 branches; and in some cities, local social security contributions are required for access to medical treatment, settling down, children attending school and buying house and car, which makes it necessary to open an independent social security account where they work.
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Complex payroll computation
Flexible working hours are common in hotels, chains, factories, fast consumer goods and other industries involving long working hours, which leads to a complex scheduling and attendance statistics. Furthermore, work concerning bonus, commission, and performance adds to the complexity of payroll calculations.
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High employment risk
Report on China's employee welfare and security index in large and medium-sized cities shows that 51.5% of workers have chosento buy commercial supplementary insurance. A survey carried out in Jiangsu, Zhejiang and Fujian shows a 10% rate of joining insurance among private enterprises. In recent years, however, about 70% of the serious accidents happened in small and medium-sized private enterprises.
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