Paying salaries to both satisfy employees' expectations and help businesses not increase costs is a conundrum that every manager needs to find an answer to. In the article below, we will learn how how to pay for win - win hey!
3P Strategy
Stability of human resources, good employees stay devoted, company develops sustainably… all related to salary. How to pay for win - win is a long term strategy. In which, 3P strategy is the answer chosen by many businesses.
Paying employees according to 3P strategy
The BBC's Director of Development Solutions once emphasized that no matter what the purpose, salary is always the number one concern of employees. As for businesses, salary is a headache because if the calculation is wrong, the salary will weigh heavily on the leader, even causing the company to lose more and more money.
3P salary strategy includes P1, P2, P3. In which, P1 is salary based on job position; P2 is salary based on capacity, revenue earned; P3 is salary according to the goal achieved. Thus, according to strategy 3 In this case, salary is no longer a cost to pay for employees, but also a weapon and a driving force for business development.
>> 7 unique welfare policies for employees
>> Necessary skills when learning short-term business management
- Pay according to P1: Right when recruiting, businesses need to ask questions how to pay for win -win? Human resources and accountants need to calculate salary according to basic position and rank. From a fixed salary fund, accountants will design payroll, analyze strategies, and requirements of the job to come up with a specific fixed salary figure.
- Pay according to P2 or also known as salary based on ability: After a few years when being paid P1 salary, the company should proceed to pay P2 salary in the form of contract payment for production departments and Pay-as-you-go to the sales department. With this form, some people will only receive a salary of 5 million, but there are also people who will receive a salary of 25 million.
Payment based on ability evaluates employee's ability very well
However, nowadays, many businesses spend 30% of their salary to pay according to their ability. If employees complete only 60 to 70% of the work, then they will only receive P1 salary but no P2 salary. If you complete the work below 60%, your salary will be reduced.
According to many CEOs, the above payment method is the answer how to pay for win - win that many people wonder. Not only does this help businesses retain good people, but it can also screen out unsuitable employees.
- Paying according to P3: Paying according to P3 is understood as a way of paying salary according to the achievements that employees achieve. To ensure the business plan and encourage employee morale, businesses need to set specific targets for employees. If anyone completes and exceeds the target, they will be added with a certain salary. .
However, there are many people who think that this is just a bonus rather than a salary because it is only temporary.
Factors other than salary
Another way to pay wages to win - win for both sides is that businesses need to consider more factors besides salary such as businesses need to calculate additional benefits, special care...
One of the businesses that is doing very well in terms of salary out there Diana Unicharm. Mr. Do Huu Trung said that in Diana, people with high salaries can ask their relatives to sign the contract to reduce taxes or additional bonus policies, seniority bonuses...
In case the enterprise is forced to cut wages, change the salary calculation policy, the human resources department will meet to discuss and agree with the employee so that the employee is not disadvantaged.
How to use 3P strategy?
As analyzed above, 3P is the best and most perfect answer to the question how to pay for win - win. So when following the 3P strategy, what should businesses do to use it effectively?
Use more payroll management software to improve accuracy
Manual salary calculation takes a lot of time and causes salary errors. Because the traditional way of calculating salary with a large number of employees, there will be a lot of error. To do well, businesses need a smart payroll software. These software are very much on the market, helping to save the salary of accountants:
- The payroll sections will help link with the timekeeper, keep employee's payroll, help managers easily control each person's salary.
- The salary received by the employee will be shown through the day the employee goes to work, the number of hours worked, the efficiency of the work.
- Timekeeping and salary grading are done automatically and accurately through the timekeeper, so there will be no errors, wasting time for employees as well as causing damage to employees' working hours.
- Based on the work results, the manager will have a way to calculate the salary according to P1, P2, P3 so that employees can improve their work morale.
How to pay for win - win is a question with many answers that each business applies themselves to suit its development. With the above sharing, we hope that the article will bring a lot of useful information for readers.
