Signing contracts, paying social security, and transitioning to an employee system for domestic service enterprises
2024-08-12
Not long after signing a labor contract with the company, Chen Na brought her two children from their hometown in Jiangxi to Guangzhou. When the job is stable, the heart is at ease Three years ago, Chen Na joined Guangzhou Weixiang Internet Technology Co., Ltd., a 51 family butler, an employee household enterprise, and became a domestic servant. The company signs labor contracts with employees, pays salaries and social security contributions on a monthly basis. She said, "In the past, I always felt like I was' floating 'in this city, but now I have taken root." In recent years, with the increasing demand for domestic services mainly focused on parenting and elderly care, China's domestic service industry has developed rapidly. According to statistics, the number of domestic service practitioners in China has exceeded 30 million, with over 1 million industry enterprises and a scale of over 1.1 trillion yuan. However, domestic service enterprises are mostly intermediary based, with problems such as low treatment of domestic service personnel, high turnover rate, and uneven service levels. The transformation and development towards an employee system is an important reform measure for the improvement and expansion of the domestic service industry, which is conducive to regulating the development of the domestic service industry, enhancing the social recognition of domestic service practitioners, and expanding the supply of high-level domestic services. The Opinions on Promoting the Quality and Expansion of the Domestic Service Industry, issued by the General Office of the State Council in June 2019, proposed to vigorously develop employee based domestic service enterprises. In November of the same year, the National Development and Reform Commission, the Ministry of Commerce, and others identified 32 cities (districts) as key areas for promoting the improvement and expansion of the domestic service industry, requiring them to be good "leaders" in developing employee based domestic service enterprises and promoting domestic service into communities. Guangzhou in Guangdong Province, Zhengzhou in Henan Province, and Chengdu in Sichuan Province were selected. Over the past five years, various cities have adhered to reform and innovation, pilot exploration, and emphasized the role of market leadership and government guidance. They have encouraged qualified domestic service enterprises to actively develop employee systems, continuously increase the number and proportion of domestic service employees, and promote the standardization, normalization, and professionalization of the domestic service industry. By the end of 2023, there will be 259 employee based domestic service enterprises in Guangzhou. The Third Plenary Session of the 20th Central Committee of the Communist Party of China proposed to improve and accelerate the diversified development mechanism of the life service industry. How to guide the transformation and development of the domestic service industry towards an employee system? What has the transformation of the employee system brought to the domestic service industry? Recently, reporters went to Guangzhou, Zhengzhou, and Chengdu for interviews. Exploring transformation, respecting laws, promoting classification, and encouraging some enterprises to try first. The sky has already turned dark, and pedestrians on the streets are hurrying. Busy Chen Na, put away her work badge, bid farewell to the customer, and join the flow of people. Thinking of returning home, I can see two lovely children with light and agile steps. I used to not work as a housekeeper. I want to find a long-term job after leaving my previous company in 2021 Chen Na said as she walked, "After a period of investigation, I feel that there is a high demand for domestic service, which is also suitable for me, so I want to give it a try." The first company I entered the industry was a common intermediary domestic service company, with a small room and a few people inside. The other party stated that the company is only responsible for collecting intermediary fees and introducing clients, and does not provide any other benefits or guarantees. After working for a few days, Chen Na found that it didn't meet her expectations and left. Afterwards, Chen Na came to the 51 family butler. As soon as I walked in, I saw that the office environment was bright and tidy, obviously much more formal, "Chen Na said. During the interview, she further learned that the company has about 3000 employees, all of whom have signed labor contracts, stable income, and complete social security, which made her very excited. After going through the process of document review, physical examination, and training, Chen Na officially joined the company. Information management and regular training enabled Chen Na to quickly integrate into the company and master new skills. If the domestic service staff encounter problems that cannot be communicated with the employer, the company will send people to coordinate and resolve conflicts, so that we have peace of mind and are not anxious when faced with problems. This team service guarantee mechanism is particularly valued by Chen Na, who has already served as the leader of a 10 person service team. For a long time, domestic service enterprises have mostly been intermediary based, without establishing stable labor relationships with domestic service personnel, and lacking scientific and standardized management and training. As a result, the professionalization level of service personnel is low, turnover is frequent, and consumer satisfaction is low. How to solve the problem? Many places are guiding qualified domestic service enterprises to transition to an employee system. After the implementation of the employee system, domestic service personnel became enterprise employees. While providing them with salary, social security, and training, enterprises also implement strict management to promote the improvement of service levels Lv Jiejue, Deputy General Manager of Guangzhou Weixiang Internet Technology Co., Ltd., believes that changing from "flexible employment" to "stable employment" can enhance the stickiness of the industry and attract more young people and high-quality skilled talents to join the domestic service industry; From the perspective of consumers, if there is a dispute with service personnel, they can file a complaint with a domestic service company, and the channel for resolving conflicts is more smooth. There are many benefits and difficulties in implementing an employee system. Paying social security and conducting training for employees will increase the company's costs, while domestic service is a labor-intensive industry with low profits. The development of employee system in enterprises requires a certain economic foundation. Some small-scale domestic service companies have limited strength and weak willingness to transform Wang Xiaobing, President of the Chengdu Home Service Industry Association, candidly stated. In December 2023, the National Development and Reform Commission and other departments issued the "Guiding Opinions on Supporting and Guiding the Transformation and Development of the Household Service Industry into an Employee System" (hereinafter referred to as the "Guiding Opinions"), which clearly stated the principle of "respecting laws and promoting classified development", encouraging household service enterprises to gradually transform and develop into an employee system based on the characteristics of service segmentation types, in accordance with the principles of voluntary participation, compliance with laws and regulations, and risk-taking. Some domestic service enterprises have taken the lead in exploring the development of an employee system. At the beginning of its establishment, 51 Family Butler was positioned as an employee based housekeeping enterprise. The company invested heavily in employee training, marketing, and other areas in the early stages, but through high-quality services, it stabilized and expanded its customer base, gaining market recognition and government support Lv Jiejue introduced that when the company was first established in 2014, there were only over 10 employees, but now it has about 3000 people, of which more than half are employees born in the 1990s. The development of an employee system requires respect for rules as a prerequisite. Why did 51 family butlers choose an employee system as soon as they were established? Our research has found that there is a high demand for mid to high end domestic services in the Guangzhou market, and many consumers are willing to purchase high-quality services at higher prices. In Lv Jiejue's opinion, economically developed places such as first tier cities and provincial capitals are more suitable for promoting the transformation of domestic service enterprises towards an employee system. Home service enterprises vary in size, target audience, and content. The key to transitioning to an employee system is to promote classification. Chengdu Heng'an Xinda Housekeeping Co., Ltd., founded in 2006, began transitioning to an employee system in 2015. It currently has 35 formal employees and achieved a turnover of nearly one million yuan in 2023. The general manager of the company, Huang Wen, said, "Our company mainly provides services such as nanny, child care nanny, and nanny. The customer base for these services is relatively stable, with slightly larger profit margins. They require higher professional skills from service personnel and are suitable for transformation." Huang Wen's viewpoint is in line with Wang Xiaobing's lack of strategy. Domestic service enterprises that mainly engage in maternal and child care, patient care, and organization and storage are more suitable for adopting an employee system, "Wang Xiaobing said. By encouraging the transformation of sub sectors that are suitable for adopting an employee system, there are already 45 employee based domestic service enterprises in Chengdu, with 36000 employees. Guiding and supporting efforts from both the enterprise and employee sides, reducing costs for the enterprise, and providing strong protection for employees. With more formal employees and payday approaching, what should we do if the company suddenly experiences a shortage of working capital? Huang Wen still remembers the difficulties that the company encountered a few years ago: at a loss, the staff of the Chengdu Home Service Industry Association offered him recruitment, "If you meet the conditions, you may try to apply for a 'fireworks loan'." The "Guiding Opinions" emphasize the importance of leveraging the government's guidance role, improving housing, finance, and other support policies, and implementing relevant tax incentives to reduce the cost and risk of employee transformation in home service enterprises. In recent years, the Chengdu Municipal Bureau of Commerce has partnered with banks to establish a bank enterprise docking platform and launched financial products such as "fireworks loans" to help small and micro enterprises in the fields of household economics and other livelihood areas obtain financing and loans. After downloading the relevant bank mobile application, Huang Wen filled in the information as required, uploaded the corporate credit report, and the 300000 yuan loan was quickly credited to the account. The entire process of applying for a loan is operated on a mobile phone, with simple processing conditions, which solves the urgent needs of enterprises at critical moments, "Huang Wen sighed. A series of tax incentives also benefit employee based domestic service enterprises. Chengdu 360 Family Service Co., Ltd. (hereinafter referred to as "360 Company") is an employee based domestic service enterprise with approximately 600 employees. The company's head, Feng Hui, stated that the tax department not only accurately promotes tax preferential policies for enterprises, but also conducts on-site policy explanations. Since 2020, enterprises have enjoyed tax incentives of over 1.5 million yuan. Guangzhou will strengthen its financial support for the development of employee based domestic service enterprises. Entering Guangzhou Yi'erbao Family Service Co., Ltd. (hereinafter referred to as "Yi'erbao Company"), one wall of the reception room is covered with honor plaques. At the end of 2020, the company was awarded the title of Guangzhou's leading domestic service enterprise and received a reward of 300000 yuan. This surprised General Manager Zhu Deyi. In recent years, Guangzhou has selected and cultivated a number of leading domestic service enterprises and trustworthy enterprises at the municipal level, and awarded them a one-time bonus of 300000 yuan and 200000 yuan respectively. So far, the city has supported and recognized a total of 21 municipal leading domestic service enterprises and trustworthy enterprises, all of which are employee based domestic service enterprises. Not only rewards, but also subsidies. From 2021 to 2023, Yierbao Company received a total of approximately 890000 yuan in social security subsidies. This has added momentum to the company's transition to an employee system, "said Zhu Deyi. In 2020, Guangzhou introduced policies to provide social security subsidies and employment subsidies for employee based domestic service enterprises, supporting and guiding their standardized development. According to statistics, from 2021 to 2023, a total of 19.877 million yuan in social security subsidies and 718000 yuan in employment subsidies were provided to employee based domestic service enterprises in the city. Provide support to enterprises and strong protection for employees. Shortly after Peng Ying, an employee of 360 Company, joined, the company purchased commercial insurance such as accidental injury insurance and professional liability insurance for her. With insurance, our rights and interests are more protected, "Peng Ying said. To stimulate the enthusiasm of employees to join employee based domestic service enterprises, Chengdu encourages domestic service enterprises to purchase accidental injury insurance and professional liability insurance for their employees; Support enterprises to provide free annual physical examinations for employees; Promote the recognition of skill levels for domestic service personnel, and give points for household registration and bonus points to those who have obtained skill level recognition... It is worth noting that for some practitioners, the reason for choosing the domestic service industry is mainly due to the low employment threshold and flexible working hours. Once a labor contract is signed, they must be subject to unified management and constraints by the company, and cannot rely on multiple intermediary companies to increase their order volume, which leads to low enthusiasm for joining employee based enterprises. Only by working from both the enterprise and employee sides, reducing costs for the enterprise and providing security for employees, can we better promote the smooth transformation of domestic service enterprises into an employee system Wang Xiaobing said. Standardizing management and conducting training to promote the standardization and informatization of domestic services and the transformation and development of domestic service enterprises towards an employee system cannot be achieved without the guidance and support of the government. However, in order to stand firm in market competition, it is necessary to strengthen standardized management and enhance professional level through oneself. Conducting training is an important strategy. Does anyone know how to wash hair for newborns Zhengzhou Sunshine Housekeeping Service Co., Ltd. (hereinafter referred to as "Sunshine Housekeeping")