Salary 3P what is? Distance calculator & excel Template STANDARD construction systems salary 3P

Different way to pay the traditional capital easily lead to so epidermis, lack of fair wages 3P brings clarity mounts directly between the contributions of employees with income they receive. This is also the solution to help businesses optimize personnel costs, retain talent, and improve operational efficiency.

In this article Lac Viet will help the business understand the nature of wage 3P, how to calculate the salary 3P, illustration, realistic, template, payroll 3P Excel and route system deployment wage 3P effective, in accordance with the operating conditions in Vietnam.

1. Salary 3P what is?

Salary 3P is a pay method, where the income of staff is composed of three main elements:

• P1 – Position (job location): wage associated with values, responsibilities of the position, regardless of who take. For example, a position of Head of Marketing always has the frame higher wages Marketing Staff as the value of different jobs.
• P2 – Person (individual capacity): Reflection of skill, experience, level of expertise of each employee. The two people at the same location but different capacity will have different pay rates.
• P3 – Performance (results of work): The salary based on the results of complete KPI or OKR. Here are the factors that encourage employees to improve performance, motivation sticking.

This model appearance and is widely applied since the 1990s at the multi-national corporations, then spread to the region, including Vietnam. Today, many businesses in the country, especially as the organization is growing fast, choose the recipe payroll 3P to solve the inadequacies of pay method tradition.

Compared with the pay usually based on seniority or the negotiated wage 3P transparent, more scientific because the directly attached income with value work capacity, real and effective contribution. This is not only limited employee status than packaging but also help managers better control the wage bill, orientation under long-term strategy.

2. The composition of the wage system 3P (Position – Person – Performance)

The wage system 3P is built based on three core elements, creating a wage mechanism moderately fair, medium, boost work performance. Understanding each component not only help business building systems salary 3P transparent, but also help employees clearly see the relationship between capacity, the results of work and his income.

2.1. Salary according to the job position (Pay for Position)

Salary according to the position is part of the basic salary, reflecting the value of the work that employees take on, regardless of who is in that position. Businesses often use the method of valuing the job (Job Evaluation) to analyze the level of complexity, responsibility, influence of each location.

For example: In a manufacturing company, location Manager workshops usually have higher wages Staff operate the machine because the responsibility for the management and coordination responsible for the quality of higher production.

Enterprise value received:

• The internal staff no longer wonder why the same company that this position higher position there.
• Create platforms for business plan pension fund sensible to avoid paying excess financial capacity.

2.2. Salary according to individual capacity (Pay-for Person)

The salary reflects differences in skills, experience, qualification of each employee. Though the same position, who have superior capabilities still enjoy higher wages.

For example, Two employees are in the position hr Professionals, but a person with a certificate HRBP and 7 years of experience, while the other new in the industry for 2 years, then the wage paid for them will be different.

Enterprise value received:

• Motivate employees to learn, develop skills.
• Contribute to retaining staff at the limit state of “brain drain”.
• Help managers distinguish clearly between the “do better” and “doing enough”.

2.3. Salary based on work performance (Pay for Performance)

This is the salary associated with the job results (KPI, OKR) that employees achieve. Other than the basic salary or capacity, this section fluctuations in performance, often accounts for a large proportion of the total income, particularly in the location business.

For example, A business may receive an additional 20% – 40% of monthly salary if exceed sales targets. This makes the difference between people who complete 80% of the KPI and the exceeds 120% KPI.

3. How to calculate wage 3P in business with formula details

In fact commissioning personnel payroll system, payroll 3P is one of the paid model modern is many businesses selected by transparency, fairness and fastened with effective work. Although, on the surface, recipe calculator, simple (“P1 + P2 + P3”), but to effective application in the enterprise, each component should be built systematically, logically consistent with strategic hr.

3.1 formula for calculating The salary 3P

In principle, the formula for calculating the salary 3P is expressed as follows:

Salary 3P = Wages by location (P1) + competitive Salary and benefits package (P2) + Salary according to performance (P3)

• P1 – Wages by location (Position): reflects the value of work, built based on the level of responsibility and complexity, the importance of location in business.
• P2 – Salary according to individual capacity (Person): could show the difference in skills, experience, qualifications, abilities and contributions of each employee.
• P3 – Salary according to work performance (Performance): the wage variation based on work results, in association with KPI or OKR has been agreed.

Illustrative example

Suppose a Marketing executive in business A wage is calculated as follows:

• P1 (location): 12.000.000 VNĐ (according to salary bracket was set for the position Marketing Staff).
• P2 (personal capacity): 3.000.000 VND (due to staff certified Google Ads and 5 years experience).
• P3 (performance): 5,000,000 VND (based on KPI created 200 lead quality/month, reaching 110% of the target).

=> Salary 3P this month = 12.000.000 + 3.000.000 + 5.000.000 = 20.000.000 VNĐ

As such, employees not only receive the basic salary according to the position, but also be rewarded for competence and actual results.

3.2. How to determine P1 – Wages by location (Position)

P1 is the base salary reflects the value of work which a position to bring to the organization, does not depend on who is holding that position. This is the foundation for all account salaries next, help business orientation paid fair from the beginning.

Job analysis (Job Analysis)

Job analysis is the first step the most important to determine the P1. Here is the process to collect practical information about work: duties, responsibilities, working conditions, requires achievement. Job Analysis helps the business have the data, criteria to assess the value of work in a systematic way instead of relying feeling.

For example: location “Professional accountant” has the main tasks such as check books, reports, tax coordination, audit... position in comparison with “receptionist”, then volume, professional liability very different. This directly affects the level P1 of each location.

Assess the value of work (Job Evaluation)

After the job analysis, enterprises need to assess the value of the location in the picture organization. There are many methods, such as for points according to the criteria (complexity, responsibility, skill requirements, the influence...) or pairwise comparison between the positions to rank the value of work.

The result of this step will be used to frame construction salaries by location – a table of norms of P1 for each level position in the organization.

Frame construction salaries by location

Salary bracket P1 should reflect the labor market and the financial capacity of the enterprise. Some businesses refer to market research salaries to ensure competitive retain personnel. The difference that employees see base salaries reflect the expectations of the profession and job responsibilities as well as help businesses optimize personnel costs.

3.3. How to define P2 – Salary according to capacity (Person)

P2 is the present value of the work, i.e. individual capacity beside the position they assume. This section helps businesses reward differences in the ability to contribute instead of paying equally for everyone.

Competency framework what is?

Frame capacity is the set of evaluation criteria of knowledge, skills, attitudes, experience of staff compared to the minimum requirements of the position.

For example: location “Staff program” may require the skills of a programming language given the ability to debug, communicate with clients..., competency Framework will this description of the different levels (basic – quite – good – excellent).

Dividing the ranks capacity

To apply, businesses often divide the capacity of the tier clear:

• Junior – fit new people into the profession
• Middle – experienced commissioning process
• Senior – high-level autonomy in work

Each rank has a multiplier or bonus level P2 respectively. This helps employees see clear opportunities, career development, income levels can be achieved when high loading capacity.

Link P2 with training & development

One of the greatest values of P2 is that it creates pathways clear for employees. When businesses have frame capacities, transparency, staff understand the condition, how to rank higher capacities, from which more connected to the company and actively learn the necessary skills.

This helps to medium businesses optimize the performance of personnel, just build resources internal quality sustainable.

3.4. How to define P3 – Salary according to the performance (Performance)

The P3 is the most dynamic in the wage system 3P. This section reflect the actual results that the generated according to the time (month/quarter/year), and the tools to promote work performance.

KPI/OKR, and relationships with salary 3P

To determine the P3, businesses need to specify only the number of work performance clear (KPI or OKR).

• KPI (Key Performance Indicator) are the indicators to measure achievement in specific job, for example: sales, number of new customers, precision material handling...
• OKR (Objectives and Key Results) is a goal associated with the results measured.

Only when KPI/OKR fitting design, clear measurement is then your new P3 reflect the actual contribution of the individual avoid controversial or subjective assessment.

The level of performance reviews popular

A popular way is to split the completion of the threshold clear:

• Below 80% KPI set out: no hit bonus
• 80-100%: bonus rate of % complete
• 100%: the higher reward to encourage exceeding targets

The stratification thus help employees clear about the goals to be achieved, promoting the spirit of working more efficiently.

Examples illustrate how to calculate P3 in % finishing work

Suppose sales targets sales of 100 million/month.

• If reach 90 million, can get up to 90% bonus level KPI
• If exceeded 120 million, the bonus can be increased corresponding to encourage outstanding performance

This creates direct contact between efforts to reach the goal and financial rewards that employees easily recognize, perceive. 

3.5. For example, synthetic calculation of salary 3P

For ease of visualization, we can be illustrated by a simple spreadsheet:

The presentation will not only help accounting or hr department salary calculator precision, which also helps employees understand the structure of income you receive, thereby creating a transparent boost performance.

4. Process building systems salary 3P for business

To apply salary 3P effectively, businesses can't just stop in concept or formula for calculating the salary 3P that need to build a full system, there are clear process. This process not only helps to ensure transparency, but also create consensus between workers and leaders.

Process building systems salary 3P for business

• Step 1. Analysis and evaluation of work
• Step 2. Frame construction capacity for each location
• Step 3. Define KPI/OKR and criteria for evaluating the effectiveness
• Step 4. Design pay scale 3P suit

Step 1. Analysis and evaluation of work

The first step is to clearly define the value of each position in the organization. Business needs analysis work to understand: the work that do, bring value, what skill requirements, responsibilities are. From there, set the ladder rank value for each location.

For example, In a service company, the position of Chief customer care team will have a higher value than Employees of customer care because responsibility for the management, training, complaint handling complex.

Benefits for business: remove status pay sentiment, at the same time make it clear why, working together in an organization, but this position receive a salary higher than other positions.

Step 2. Frame construction capacity for each location

After determining the value of work, enterprises need to build a frame capacity (Competency Framework) – i.e., the criterion of knowledge, skills, behaviors that employees need to carry out good work.

For example, With location Staff accounting competency framework can include skills data analysis, understanding tax laws, the ability to use accounting software.

Benefits for business: assessment paid based on actual capacity, rather than just based on qualifications or seniority.

Step 3. Define KPI/OKR and criteria for evaluating the effectiveness

Salary 3P indispensable factor Performance (job performance). Businesses need to set KPI (metric measurement) or OKR (objective key) clear for each location, ensuring measurable work efficiency.

For example: employee business KPI is achieved sales of 1 billion/month; Marketing Staff have KPI is to create 200 customers, potential quality in the quarter.

Benefits for business: employees clearly see their efforts paid deserves, while organizational control is effectively investing in human resources.

Step 4. Design pay scale 3P suit

After obtaining data from three elements (Position – Person – Performance), the business will build the salary scale 3P. Payroll is required to ensure internal and competitive with the labor market.

Small businesses can start with a template, payroll 3P excel to easily manage, then when the enlarged scale, can apply software management personnel dedicated to automation.

Illustrative example deployment

• Business SME: A company 100 personnel can start by analyzing a 10-position, core set KPI simply use Excel to manage payroll. The goal is to build the foundation fair before, then tweak from time to time.
• Large corporations: With thousands of employees, businesses need to invest in software systems HRM to manage data capacity, KPI and payroll 3P. Deployment process can last 6 – 12 months, but the results yield a wage mechanism transparent, consistent throughout the system.

As such, building systems salary 3P don't just apply the formula for calculating the salary 3P mere, which is a process from the job analysis, construction, competency framework, to design the salary transparency. When deployed properly, this system will become the leverage strategy to help businesses attract retain talent, at the same time, optimal cost-effective staffing.

5. Sample payroll 3P Excel building systems salary 3P STANDARD

To easily visualize, business can refer to the sample payroll 3P Excel with the structure consists of the basic columns following:

• Name
• Job position (P1)
• Personal power (P2)
• Job performance (P3)
• The total salary 3P

Sample payroll 3P Excel

DOWNLOAD SAMPLE PAYROLL 3P EXCEL FILE HERE

Advantages when using Excel

• Fits small and medium enterprises, less personnel.
• Easily customize according to own needs.
• No cost software deployment.

Limitations of Excel

• Hard to manage when businesses have more staffing, big data.
• Easy-to-happen errors when entering data or update formula.
• Lack of confidentiality, is not authorized to be detailed.

Therefore, with the organizations and enterprises can scale from a few hundred personnel, the management, payroll 3P in Excel would be less effective. At this time, businesses should consider investing software personnel management features integrated payroll 3P to ensure accuracy, transparency, saving operating time.

6. Any business matching salary 3P?

In the environment of modern business systems salary 3P solution is not “one-size fits all business,” but suitable for many organizations want to optimize human resource management, fair pay, and mounting job performance with business results. Understand where is the right business to help you avoid wasting resources, minimize risk when deploying soon achieve the desired effect.

6.1. Business is in the growth phase, competitive workforce

The fast-growth business casual in recruitment status open wide, the organizational structure is changing constantly need to build policies pay clear to attract talent. When the scale team with the larger role each distinctly different, the only paid a salary according to seniority or fixed merely will no longer enough fair competition.

Benefits when applied wages 3P:

• Create transparency in pay between the position and rank.
• Ensure employees clearly see the “do good, be paid worthy”, from which reduce the rate of the holiday.
• Business support competitive attract qualified personnel in the context of the labor market highly competitive.

More articles in-depth recommendations that new business building system personnel or are growth will be easy to apply salary 3P right from the start because help design hr policies in sync and avoid the deviation of pay later.

6.2. Businesses are experiencing problems with fair internal pay

One of the main reasons why businesses take good personnel is not low wages, which is the lack of fairness in pay, compensation. When employees feel colleague in the same position, but receives salary difference that for no apparent reason, they are easy to lose motivation't stick long.

The wage system 3P help solve this problem by:

• Clear definition of the value of each job position (P1) based on job analysis, standard business.
• Reviews personal power (P2) based on the criteria that are transparent and easy to understand.
• Connect salary with job performance (P3) based on KPI design clear.

The result is enterprise limited is a domestic quarrel, increase transparency, employees can clearly see the development path of his profession, that the pay method traditionally difficult to meet the comprehensive.

6.3. Businesses want to standardize human resource management and enhance efficiency

Wage systems, 3P, not merely is the formula for calculating the salary but also the tools, personnel management, strategy. It forced businesses:

• Construction job description clearly, updates, unified under each position.
• Establish competency framework to help assess your level of skill and potentials of employees in a systematic way.
• Connect only performance goals job with salary reduction rating feeling.

The business has the foundation personnel management relatively stable (for example built KPI/OKR for multiple locations) will avail salary 3P more efficient because they already have the data, the process to measure the rated capacity, work efficiency. On the contrary, if the business is not have platform administrator, the “jump right” to wage 3P may be difficult if not built before the process platform.

6.4. Businesses have the financial foundation firmly to invest in hr system

Building systems salary 3P require time investment cost, especially in stages:

• Frame design capacity, criteria for evaluating performance.
• Training managers and hr about how reviews work, effective capacity.
• Updates payroll system or software support to automate the payroll 3P accurate.

Therefore, businesses have the financial foundation ready steady investment for hr will get long-term value from wage systems, 3P, as optimal staffing costs, reduce risk rating sensuality, increased performance organization through the pay attached with clear results.

6. Building systems salary 3P software hr LV SureHCS C&B

In fact, many businesses start applying building systems salary 3P often choose Excel do tool payroll. However, when the number of personnel increased a few hundred to a few thousand people, Excel, revealed many limitations: difficult to ensure accuracy, time-consuming synthetic data, easy to occur leakage of sensitive information, in particular the lack of transparency in the performance measurement. This is the reason the organizations and enterprises are to find out information about salary 3P need a solution software salary more professional.

SureHCS HRM is software hr management of Lac Viet is designed to optimize the entire process manager salary 3P. Instead of handling, the system helps:

• Automatic payroll 3P: integrated software available formula for calculating the salary 3P, remove errors while typing shortened to 70% of the time compared with the traditional
• Management KPI/OKR capacity assessment: Data on performance, capacity is updated directly from the rating system, ensure that the wage P2 and P3 reflect individual capacity, work results.
• Increase transparency fairness: Employees can track clearly the factors that affect your earnings, from which minimize the comparison, the complaint should not be.
• Data security hr: Data is stored centralized, decentralized details, avoid losses, or reveal important information.

LAC VIET SUREHCS – HR MANAGEMENT SALARY C&B CUSTOM DEPTH FOR BIG BUSINESS

Lac Viet SureHCS is software HRM personnel management comprehensive, developed by Lac Viet – unit more than 30 years of experience in the field of management software business in Vietnam with international standards such as CMMI Level 3, ISO 9001:2015 and ISO 27001:2013.

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The system is flexible deployment On-premise or as a custom model in depth, to help businesses automate the entire process hr – attendance – payroll – benefits – insurance, complete replacement job management using Excel discrete.

The module's core hr software lacviet SureHCS:

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• Businesses are personnel management using Excel, many types of timekeeper, need automate the entire process

 

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SureHCS are trusted and used by many large enterprises and leading corporations such as: Coca-Cola, Takashimaya, Textile SuccessfulPlastic Long Thanh Phu Hung Life, Airports of Vietnam (ACV)the business belonging to the SGCthe FDI enterprises in the fields of production, logistics, trade – in service.

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WHY BUSINESSES SHOULD CHOOSE TOUCH THE SUREHCS?

• Customized according to the actual business, no pressure mold as packaged software.
• Handle the personnel – salaries complex that many software HRM other does not respond.
• Deep understanding operated business English & FDI, ensure compliance with legal Vietnam (labour, SOCIAL insurance and personal income tax).
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CONTACT INFORMATION:

• Hotline: 0901 555 063
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• Website: https://lacviet.vn | www.surehcs.com
• Office address: 23 Nguyen Thi Huynh, Phu Nhuan, ho chi minh CITY.CITY

The application software hr LV SureHCS HRM not only solve the math calculate salary 3P complex but also help business build a culture of transparency, encourage performance and retain talent long-term.