Taiwan’s unemployment rate is low, which means employers may find it difficult to find the right talent to fit their open positions. The Taiwanese people also prefer face-to-face meetings, so you will need to travel back and forth to Taiwan to effectively recruit and hire employees in the country.
Globalization Partners can simplify the process. We can hire top talent using our established PEO and assign those employees to work for you. As the Employer of Record, all compliance falls on our shoulders instead of yours, so you can run your company without worrying about Taiwan employment compliance.
Recruiting in Taiwan
When you decide to expand, two of the most vital tasks you’ll undertake are staffing and recruiting. You need to understand each country’s cultural and business norms to bond with your prospective candidates. Demonstrating respect and a deep knowledge of the culture will help you impress candidates and encourage them to choose your company. Six of the most important facets of Taiwan’s culture follow.
When you meet someone in Taiwan, it’s polite to nod your head or bow slightly. Handshakes are usually only for male friends. Also, never introduce yourself — have a third person introduce you instead. At a party or business meeting, the host will typically introduce all attendees.
2. Fluid Punctuality
While most Taiwanese people appreciate punctuality, it’s okay to be a few minutes early or late. Some businesspeople may even miss a meeting, but you should avoid doing so when you have meetings with job candidates.
3. Numerous People at Meetings
When you meet with a potential candidate, bring a team of two to four people, including one senior person with the power to make decisions. This action can enhance your company’s status and show the seriousness of the meeting.
4. Slow Negotiations
Most businesspeople in Taiwan are hard bargainers and will try to gain a concession by wearing you down. Don’t push too hard or fast — stay patient until you get a deal that works for both parties. It’s also crucial to allow your counterparts to set the negotiation pace and deadlines. Since decisions are made collectively, they’re often slow to arrive.
5. Avoidance of Direct Communication
While people will state their ideas clearly and without hesitating, they will not directly say no. Instead, they may say that they’ll try or say “I understand” instead of giving a clear yes. You should mirror this type of speaking to avoid turning away potential candidates.
Guanxi means “connections” or “personal relationships.” Friendship is valued in business, and most Taiwanese businesspeople will want to know you personally. Show that you’re committed to working together and have sincerity and respect for their culture. Guanxi is important for overall business success, but it can take a while to influence your relationships. Keep this fact in mind when you’re recruiting, as you’ll want to know your employees personally.
The Recruitment Process in Taiwan
When recruiting in this country, you can either look for Taiwan nationals or seek foreign nationals living in the country. The Employment Services Act stipulates that you must give preferable or affirmative consideration to Taiwanese nationals. Employing a foreign worker cannot jeopardize a national’s opportunities. The act also prohibits you from discriminating against any applicant or employee based on:
- Sexual orientation
- Marital status
Regulations do provide subsidies for employers who hire persons with disabilities. If you do not hire individuals with disabilities, you may need to contribute to the subsidy fund.
Unlike many other countries, Taiwan does not prohibit background and reference checks. However, you should abide by the applicable laws and regulations related to privacy and personal information security. You can also request screenings for candidates, such as drug or personality tests, as long as you take human rights protections into consideration. All tests should be conducted under the employee’s free will.
Additional Recruiting Laws
While staffing your business in Taiwan, you cannot:
- Present false advertisements or disclosures
- Request applicants to surrender personal documents unrelated to the employment
- Withhold an applicant’s belongings
- Collect bond from an applicant
- Assign an applicant or employee to engage in any work that violates public orders
- Submit false information or fake health examination samples when applying for permits for foreign workers
- Publicly display regular pay less than NT $40,000
How to Hire Employees in Taiwan
Hiring employees in Taiwan should start with an employment contract. Although individual contracts are not the norm or required in Taiwan, we strongly recommend that you draft a written agreement in the native language that includes terms such as compensation, benefits, and termination requirements. Make sure to write all compensation amounts in new Taiwan dollars (NTD).
Taiwan’s Labour Standards Act (LSA) recognizes two types of employment contracts — fixed-term and non-fixed-term. Fixed-term contracts work for temporary or short-term work up to six months, seasonal work of no more than nine months, and special work with a specified duration.
Taiwan Employment Compliance
Most Taiwan employment compliance laws are covered in the LSA, although some occupations and industries follow the Civil Code. If you have more than 30 employees, you are required to write out work rules and register those rules with the local labor authority. The law also stipulates employers must give preference to Taiwanese workers as opposed to hiring foreign workers.
Taiwan employment compliance also applies to work hours. The typical workweek is 40 hours, with eight-hour days. All employees other than top-level country managers, senior managers, and mid-level managers are allowed overtime. However, it is illegal for employees to work overtime on their regular days off.
How to Onboard Employees
The onboarding process is different for every country and can vary depending on the type of business you operate. You ultimately decide how to onboard your workers, but you can follow several best practices after you hire Taiwan employees:
- Go over the employment contract during the employee’s first day or week
- Provide any necessary training that the employee will need to succeed
- Draft a code of conduct for your company and have all employees sign it
- Onboard multiple employees together to save time
Benefits of Taiwan Hiring Outsourcing
Taiwan hiring outsourcing services can make a tremendous difference in the life of your company. With Globalization Partners, you won’t have to worry about finding employees who fit your open positions. We’ll recruit top talent for you and hire them to work on your behalf. Our goal is to take Taiwan employment compliance off your plate and onto ours.
Work With Globalization Partners
Globalization Partners will simplify your expansion with our Employer of Record platform. Contact us today to learn more about our services.