Regulation compensation is an important foundation not only is the tool that helps the organizations and enterprises ensure fairness and transparency in remuneration policy, which is also the key element to attract, retain talent, at the same time prevention of legal risks.
In this article Lac Viet Computing will provide details from the concept, constituent components, to the building steps and update regulations on remuneration latest to help businesses practical application in an efficient way.
1. Regulation of salary bonus what is? Why we need to build?
1.1 Regulation of salary bonus what is?
Regulation salaries and bonuses is the text's internal business regulations specific principles, methods, criteria to pay salary and bonus as well as the benefits for workers. This document is a legal requirement to be issued official publicity in the organization, to ensure that all workers and employers have the reference base clear.
The difference of this regulation in comparison with the regulations or the agreement is not official, located in transparency has legal value. When is text, the regulation salaries and bonuses help:
- Business: avoid the condition applied arbitrarily, reduce the risk of disputes, creating consistency in human resource management.
- Employees: understand the rights, obligations, from which the peace of mind working, motivated long-term commitment.
Practical examples: A manufacturing company applies template rules, the salaries and bonuses of the company, with clear criteria as to pay wages on time, bonus based on productivity, there is allowance night shift. When staff have any questions about the bonus, the leader board just for lighting regulation, to explain transparency, from which restrictions are contradictory and keep satisfaction in the collective.
Thus, one can see regulation salaries and bonuses not only the legal requirements but also is a strategic tool to enhance effective personnel administration, building enterprise culture fair, professional.
1.2 Benefits when business building regulations salary, bonus transparent
A regulation on the compensation transparency not only meet legal requirements but also bring more real value for the business. Specific:
- Increase motivation work: When employees clearly understand the level of wages, conditions, review, bonus, benefits of themselves, they are motivated to strive to achieve the goal. Transparency also helps to eliminate psychological comparison, speculation between departments.
- Attract retain talent: According to the survey PwC 2023, 72% of workers considered remuneration policy are important factors when decided to stick with the business. This means that a model regulation on remuneration clear fair will help businesses better compete in the recruitment market.
- Limited labor disputes: disputes about wages, bonus, account for a large proportion in the service of the labor in Vietnam. When businesses have regulations on salary transparency is internal communication clear, every questions are the basis to answer, from which minimize complaints.
- Enhance brand image recruitment: apply now form the salaries and bonuses of company transparency, mounted salary with work efficiency will create trust with candidates. Not only attract candidates good but also help business branding recruiters reputation, professional.
In summary, construction of public regulation salary transparency is an investment strategy. This is not the cost, which is the business consolidation, cultural fair, motivational development, optimize human resources to achieve effective sustainable business.
2. The legal basis of the regulation salaries and bonuses
To ensure the legality applied in practicality, regulation, compensation must be based on the provisions of the labor law current. Currently, two bases, the most important include:
- The Labor code 2019: regulatory principles payroll forms payroll, time limit, responsibilities of business in the public transparency policy salary and bonus.
- Decree 145/2020/ND-CP: detailed instructions on the building, issued public regulation on the payment of wages, bonuses in the business.
According to the law, business required to build and public regulation salary at work for laborers to know. This is not only a legal obligation but also as a base to protect the rights of workers in the event of a dispute.
Practical example: A service company has issued model regulation on the remuneration of the company with full regulation of wages, bonus and welfare. When complaints about the bonus pay by revenue, company can rely on this regulation to prove that the pay was strictly regulated, thereby limiting the risk of dispute ensure compliance with the law.
With respect to the organizations and enterprises are to find out information about the regulation wage, bonus, to know the legal basis not only helps avoid violations, but also is the foundation to build a text transparency, fairness, creating peace of mind for staff, improve the reputation of business on the labor market.
3. The important component in the regulation of salaries and bonuses
Here are the ingredients important that the organizations and enterprises are to find out information about regulations on remuneration to note:
3.1. Regulation of wages
Salary is the core part in any regulation compensation whatsoever. Clear rules on wages help employees understand the basic income, allowances, payroll methods, and help businesses comply with the law.
- Define basic salary: basic salary should be based on job classification, capacity, experience standards in the market. For example, the position staff accountant with 3 years of experience in Hanoi, salary basic reference are 10 million vnd/month.
- Allowances and additional payments: include travel allowances, allowances eat ca, allowance typical work. The account is not only cost assistance for employees, but also motivation.
- Forms pay: May from time to time (monthly salary), by product (production workers), or as exchange (project/ job specific). Businesses need to choose the form appropriate to the specific job to just, fair and efficient.
- Transparency requirements fair: wages must be publicly lookup, uniformly applied to all employees in the same position.
3.2. Regulations on bonus
Rewards earnings in addition to basic pay, to encourage employees to complete, beyond just the standard work. Construction criteria, reward transparency helps employees actively strive to reduce the risk of complaints.
The type of bonus downloads:
- Bonus turnover/ profits: tied to business results.
- Bonus holidays: represents the interest of the business to the life staff.
- Initiative bonus, productivity, encourage innovation, improve work efficiency.
Criteria review bonus: Need clear, fairly easy to test. For example, company A applied KPI quantitative to enjoy, such as sales achieved 100% target will get 10% bonus monthly salary.
Bonus transparency is not only motivational but also strengthen the confidence of staff, reduced the rate of the holiday is not desired.
3.3. The benefits supplements
Supplemental benefit is the benefit in addition to salary, bonus, play an important role in retaining talent, experience staff.
The benefits downloads:
- Social insurance, health insurance, unemployment insurance.
- Other benefits: vacation, birthday, health care.
- Mode training and capacity development.
The role of welfare: According to research by Gallup 2023, the business offers benefits in full conformity may be reduced to 25% of the rate of quitting (Source: Gallup).
Benefits for business: good Welfare help create a working environment that actively enhance satisfaction, loyalty of employees.
4. How to build a regulation salaries and bonuses for corporate efficiency
To build a regulation on the compensation, effective, businesses need to follow the steps the system, ensure both compliance with the law, have created real value for employees and optimize effective management.
Step 1. Determine the objectives and principles
Before construction, businesses need to clearly define the objectives of the regulation on the salary: ensuring fair, transparent, and encouraging employees to complete work objectives. Basic principles include:
- Fair, transparent: All employees are entitled to benefits under the same standard with the same position.
- Compliance with law: Regulation must be consistent with The Labor code, the Decree, avoiding legal risks.
- Attached to strategic hr and business: For example, the business wants to focus on developing sales team can prioritize sales bonuses, while innovative businesses can emphasize initiative bonus.
Illustrative example: company X sets the goal of reducing the rate of absenteeism by 15% in the year by adjusting regulations rewards associated with working efficiency, benefits, supplements, motivation, employee engagement long term.
Step 2. Market analysis and internal
This step helps businesses set salary bonus reasonable, moderate competition in the market just fit the internal capacity.
- Market survey: consider the average wage in the industry, the region to ensure the business does not pay too low or too high, avoid losing balance the budget.
- Internal evaluation: capacity analysis, job location, current performance of employees. This helps to identify groups salary, pay scale, criteria, award reasonable.
Step 3. System designer salaries and bonuses
After analysis, enterprises need to design stairs payroll, reward mechanism:
- Construction pay scale: specifies the basic salary, allowances, the additional terms in each position and rank.
- Set reward mechanism associated with KPI, performance of work or business results. For example, employees reaches 100% KPI receive a bonus 10% of your salary month, reaching 120% KPI receive 15% of the monthly salary.
- Combine welfare system, including training, working environment, mode resort... The account is, however, not directly with money, but increase the experience, staff, reduce the rate of absenteeism, improve productivity.
Sample application rules bonus latest help enterprises deploy fast, save the construction time from the start to ensure compliance with the law.
Step 4. Internal communications deployment
A regulation best be communicated clearly to effective implementation:
- Ensure employees understand and consent: Explain how to calculate salary, bonus, benefits to employees seen by transparency.
- Create a channel feedback: Employees can reflect, questions about salary, from which business adjust the fit as needed.
The end result is that business has a regulation on the compensation transparency, fair, flexible, helps to increase employee motivation, reduce disputes enhance effective hr management.
5. Model regulation on the remuneration of the company (reference)
A model regulation on the compensation standard medium businesses comply with the law while ensuring transparency, fairness in pay salaries and bonuses. Below is the basic structure that the organizations and enterprises are to find out information about the regulation compensation may refer to:
5.1. Purpose and scope of application
- Purpose: to Determine the principles, methods, pay salaries, bonuses, allowances, benefits in order to ensure fair, transparent, promote work efficiency.
- Scope of application: the Entire staff of the departments of the company, including all employees and contract.
5.2. Principle paid
- Pay based on work capacity, actual performance.
- Make timely, transparent, public, internally.
- Rewards and benefits are clearly defined, avoid applied arbitrarily.
5.3. Regulation of wages
- Basic salary: According to the position, rank, experience.
- Allowance: include allowance expertise, travel, lunch, night shift...
- Forms pay: monthly Salary, according to the product or exchange, depending on the peculiarities of work.
5.4. Regulations on bonus
- Performance bonuses, sales initiatives or the holidays.
- Criteria for awarding specific, transparent, are the basis of measurement data.
- Bonus to be paid any salary or according to the term agreed.
5.5. Allowance benefits
- Mode social insurance, medical insurance, unemployment insurance.
- Subsidies for travel, vacation, birthday, training mode.
- Welfare policies and software to help improve the experience of employees, retain talent.
5.6. Effect
- The regulation takes effect from the date issued and is reviewed periodically updated.
- Workers and management, the parts have to be popular enough.
Note: Businesses can purchase a sample regulation of salary bonus based on the latest industry, number of employees, financial resources, strategic hr development.
6. Application software personnel management in the construction and administration regulation salaries and bonuses
In the context of goods, the application human resource management software as LV SureHCS HRM bring many practical benefits:
- Support process automation: automatic synthesis of attendance data, KPI, performance to salary, bonus and accurate. Minimize flaws craft, save time for the hr department.
- Transparent, fair: All information on salaries, bonuses, benefits stored access transparency. Employee easily lookup the salary, bonus, allowances and understand the criteria considered for rewards.
- Quickly update the new rules: subsystem software manager salary C&B allow adjustable regulation of salary bonus when there are changes to the law or internal policy. To help businesses comply with The Labour code 2019 and the decree guide.
- Enterprise value received: enhance effective management personnel, reduce disputes bonus. Increased experience staff, raising the stick loyalty. Business support building a culture of fairness and transparency in pay.
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