Tips for effective salary and bonus management from C&B's experts

Salary and bonus management is not limited to calculating salaries or carrying out insurance and tax-related tasks. It is a multidimensional field that involves various aspects such as compensation policies, salary levels, and the company's competitiveness.

In a business environment where human resources are highly valued, the person in charge of salary and bonus management not only performs basic tasks such as salary calculation but also actively participates in salary management and planning. Besides the pressures of the job, this field offers attractive challenges and significant personal development opportunities.

Recently, Aniday had the opportunity to attend a sharing session by a reputable C&B consulting company. Below are the key points that Aniday would like to share after that session.

Salary and Bonus Management

Salary and bonuses in a company encompass various components such as base salary (including lunch allowances), allowances, variable bonuses, and stock options. When comparing the competitiveness of salary and bonuses among companies, it is not just about comparing the salary level. Each company has different compensation policies based on scale, specific positions, or job roles.

For example, some companies may only provide a base salary and allowances, while others may include variable bonuses (especially in sales positions). Some companies may have lower salary levels compared to the market but offer exceptional benefits, which can attract talented individuals.

Job Evaluation

Job evaluation is the process of determining the value of a job through factors such as tasks, responsibilities, authority, complexity, and job requirements. This value is determined based on the job's importance to the organization, complexity, required skills and experience, along with responsibility and authority requirements.

Job evaluation plays a crucial role in determining salary levels and other benefits for employees. This process needs to be carried out objectively and fairly, based on clear and transparent criteria.

Salary and benefits: Maximizing value to retain personnel.

Salary, bonuses, and benefits are crucial factors in attracting and retaining talented individuals. To ensure the effectiveness of salary, bonuses, and benefits, it is important to ensure that employees feel they are benefiting from them.

This means that salary, bonuses, and benefits must align with the desires and needs of employees while being implemented transparently and fairly.

There are several factors to consider when designing a salary, bonuses, and benefits system to ensure that employees feel they are benefiting, including:

• The competitiveness of salary and bonuses compared to the market.
• Alignment with the desires and needs of employees.
• Transparency and fairness in implementation.

4. Compensation policies: What makes the company different? What is the core value?

Compensation policies are one of the ways a company expresses its core value. Compensation policies should be built based on criteria such as:

• The competitive capability of the company.
• The financial capacity of the company.
• The core value of the company.

Compensation policies should reflect the core value of the company, such as:

• Emphasizing fairness.
• Emphasizing competitiveness.
• Emphasizing employee development.

5. Salary increase rate

The salary increase rate is an important factor in ensuring employee income. The salary increase rate should be determined based on factors such as:

• The competitive capability of the company.
• The financial capacity of the company.
• Employee job performance.

The salary increase rate is often determined based on the average market increase rate. However, companies can also flexibly adjust the salary increase rate based on other factors.

nstead of adjusting salaries based on the personal preferences of leaders and different departments, delegating the authority to department managers can provide flexibility and retain talent. However, sometimes this system becomes unfair.

For example, even if employees in different departments have similar performance, differences in the enthusiasm of department leaders can lead to varying salary levels. Moreover, a high-performing employee and their excellent department may receive a lower salary compared to a colleague with average performance due to different leadership.

These are some suggestions from experts and my personal experience regarding salary management. Compensation management is truly an important part of human resource management. If a company values its human resources, the person responsible for salary management should not only perform basic tasks related to payroll but also have the ability to manage job descriptions, adjust salaries, and plan systematically. This not only creates significant pressure when dealing with salaries and bonuses but also affects the salary adjustment rate and compensation planning, creating many impacts and development opportunities for the business.

We hope this article from Aniday is helpful to you!