1. The importance of employee salary management
Employee salary management is an important step in the human resource management of any business. Payroll management includes a series of activities around employee compensation and benefits such as: formulating salary policies and regulations; building salary scale, salary grade; employee salary calculation; tax finalization and insurance; HR information management...
Employee salary management plays an important role in building the human resource team of every company, contributing to bringing companies many significant benefits such as:
- Attract and retain talent
- Ensure fair and equal treatment policy for all employees
- Boost productivity and improve labor quality
- Build and maintain a close relationship between the company and its employees
- Stabilizing human resources, creating a sustainable foundation for businesses to thrive
In particular, salary management has a great influence on the labor productivity of the enterprise because it determines the level of contribution and the attitude and working spirit of employees.
If employees feel that the salary they receive is not suitable for their abilities and qualifications, they will tend to reduce their work performance, express discontent, not cooperate or even leave. organized to look for better opportunities.
2. Common employee salary management methods
Manage manual payroll with spreadsheet
This is the most commonly used payroll management method in businesses with the main tool being an excel spreadsheet. With this method, HRs will update information such as salary coefficients, allowances, timekeeping, ... and build payroll by performing manual operations on spreadsheets.
This method of salary management helps to save significant costs and at the same time ensures the problem of information security for businesses due to the use of internal human resources. However, this method also has many potential risks because it is easy to make mistakes in the process of synthesizing salary data. At the same time, it also consumes a lot of time and effort of the human resources and accounting departments because they have to process a lot of data, documents and prepare tax and social insurance reports as well as ensure the correct payment. term.
Therefore, if the employee salary management process is not conducted in a methodical and strict manner, it will most likely become a barrier for production and company activities.
Outsourcing
For companies with limited resources or want to focus on production and company activities, choosing to outsource employee payroll management services is a reasonable solution. Companies providing payroll and payroll management services perform all stages of employee salary management such as making payroll, registering for health insurance, declaring and finalizing PIT for employees, etc. Consulting on issues of regulation, salary policy, tax and labor contract for enterprises.
However, many companies are still "wary" when applying this form because of cost and security barriers.
3. 6 steps to standardize the employee salary management system implementation process
1. Set up salary regulations
Salary Regulation is a document that stipulates the mechanism and method of salary payment developed and promulgated internally by an enterprise on the basis of the provisions of law. The salary payment regulation clearly and transparently stipulates issues related to employee salary such as salary bonus, allowances and equivalent amounts, thereby serving as a basis for calculating monthly salary for employees.
In order to develop a set of methodical and standard salary regulations, enterprises must always monitor and update new regulations of the labor law, and at the same time, based on the operation situation to make appropriate improvements.
2. Building a salary scale
Salary scale is a system of salary groups, salary ranges, and salary levels built to serve as a basis for paying employees' salaries. This is the basis for enterprises to calculate monthly salary in addition to factors such as position and position, job characteristics, capacity and work completion results of employees.
The construction of a payroll scale is a mandatory work to serve as a legal basis for paying employees' salaries and to ensure transparency and fairness in salary management. At the same time, the salary scale is also a reference system for employees to know their actual income and motivates them to strive to achieve the expected salary in the salary scale.
Companies should note that when building a salary scale, it is necessary to understand the provisions of the law on regional minimum wages, as well as consult the trade union and the company's human resources team.
3. Time attendance management
Timekeeping management is the monitoring and recording of the actual working time of employees as a basis for salary calculation. Currently, there are many forms of employee timekeeping and diverse timekeeping management to serve many different needs and work characteristics of companies such as:
- Time attendance by paper card, magnetic card
- Time attendance to scan fingerprint code
- Face ID time attendance (face recognition)
- Timekeeping by GPS positioning
In addition to monitoring the employee's daily attendance process, HR also needs to closely manage the applications arising in the month such as leave, unpaid leave, compensation timesheets, etc… to ensure benefits and calculation, exact wages for employees.
4. Calculation of salary
To perform payroll calculation for employees, HR needs to collect and fully collect information and data constituting the employee's salary, including: actual number of working days, salary coefficient, KPI targets, etc.
Each enterprise will have a different salary calculation method depending on the characteristics of the salary system and the nature of the job position. However, every company must ensure compliance with the following requirements:
- Ensure correctness, completeness and accuracy
- Calculate salary on time and on time as required
5. Salary payment
After the payroll is available and confirmed by the relevant parties, HR will proceed to pay the employee's salary according to the prescribed time limit. Currently, there are many forms of paying employees to help companies optimize this process such as:
- Pay wages in cash directly to employees
- Make a salary slip and pay it to a representative to receive, this form is suitable for companies and companies with characteristics of working in groups and projects.
- Transfer employee salary via bank account
- Authorization to pay salary through the bank's salary payment service
6. Tax finalization and insurance payment
Finalizing personal income tax and paying insurance for employees is a mandatory obligation of all organizations and companies. Therefore, this process needs to be strictly implemented and ensured on time according to the provisions of law.
Through the article on Vietnam Manpower, we have brought to readers the most effective solutions to optimize the employee salary management process as well as introduced the most advanced salary management software on the market, helping X2 be more productive for HR.
Replies to This Discussion