What is 3P salary?
3P salary is a new salary payment mechanism based on existing criteria and based on which the HR manager can cover the work performance of each employee. The objective of this salary method is to ensure internal and market fairness in pay, thereby ensuring the ability to attract, retain and motivate employees.
3P salary includes:
Pay for Position - Pay by position: Enterprises need to evaluate the value of work in each position and title and combine it with learning about the common salary levels of other units in the same field from there. establish clear and appropriate salary regulations for employees.
Pay for Person – Pay according to individual capacity: based on 3 criteria: professional capacity, core capacity, capacity by role to determine the actual capacity that employees have contributed.
Pay for Performance – Pay according to performance, job completion results: This method will be calculated based on the employee's work performance according to the process: Assign work goals -> Evaluate work performance (complete or not complete) -> Incentive bonus -> Personal development -> Organizational development.
The benefits of using the 3P payment mechanism
1. Ensure internal fairness
Explain to employees questions that have not been explained before as to why the salary issue of positions and employees must be different. Help employees to be aware of the issues of how to get high salary and better income, so that they can strive and compete to be effective for themselves, as well as for the business.
2. Ensure external fairness
If creating internal fairness is the way to build a scorecard scale according to P1 and P2, then external fairness is determining the salary the market is paying for positions, according to each business size based on market surveys. to determine the salary suitable to the needs, from which businesses can attract talent through their salary policy.
3. Creating motivation for business development
Through the form of P3 salary, it encourages employees to pay more attention to the final performance results and make more contributions to limit the risks, the worst possible effect, leading to work productivity. employees are higher, more efficient and the enterprise pays a salary that is more suitable to the business situation of the enterprise from time to time.
In short, no matter what criteria you determine, standing in the position of a Human Resource Manager - People Management, you also need to reconcile the essential needs of employees and the interests of users. employees so that businesses can develop sustainably and prosper.
With the benefits that 3P salary brings, businesses should apply in their salary payment mechanism to be able to manage the business better.
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