Tin tức
Transparency in wages – the talent retention strategy
2023-03-06
Fairness and transparency in wages are always the top concerns of employees in today’s society. Followed by a series of problems for businesses: how to retain talented people and attract young human resources.
Table Of Contents
Non-transparency in salary – the cause of “separation”
“Financial security” – stable income and receiving reasonable, timely compensation and benefits is always one of the top priorities of employees. Therefore, the appearance of unnecessary errors in the pay period is easy to cause the workforce to lose motivation, reduce performance, work quality, or even lead to “wrong” outcomes: “one miss, one staff”.
Despite understanding these consequences, many companies still repeat mistakes, lose talented people just because they are not transparent about salary and bonus. According to a survey by Beqom in 2022, up to 60% of 1000 employees do not hesitate to join a company that pays more transparently than the current company. This shows that, when transparency is one of the top priorities of employees, human resources are always ready to change jobs if the company or business is not clear in how to calculate salary and bonus. Not only losing the trust of employees, lack of salary transparency also makes the company’s internal “tired” and may face legal problems. So, what is the solution for businesses to overcome these situations?
Effective solutions for businesses
The transparent payment of wages requires businesses to have enough resources to handle the huge administrative workload including: keeping labor records; manual data processing; comply with and pay labor tax in accordance with the law; data security and salary fraud prevention… To solve the above problems, businesses can choose from many different solutions, which can start from within the business or can start by receiving support from an outside agency. Here are some typical solutions businesses can refer to.
Invest in a basic payroll process
Currently, many businesses have considered investing in a methodical payroll process as a way to take advantage of human resources, while improving and limiting errors in the salary and bonus process. In this way, the enterprise can not only use internal resources, but also can maintain it for a long time if the payroll process is invested in a methodical and reasonable way. However, this is still one of the “difficult problems” for small and medium enterprises. There are countless related problems surrounding businesses of this size such as: lack of personnel, insufficient financial capacity to invest in recruitment, skills training and additional technology solutions… Meanwhile, large enterprises are afraid to spend a lot of effort building and maintaining a payroll system instead of focusing on developing the company’s strategy. Therefore, the current investment in a basic payroll process is still quite inadequate for some businesses.
Outsourced payroll service
Another solution proposed that can overcome the above problems of businesses is to use outsourced payroll services. According to the 2021 EY payroll survey, 69% of organizations said they used outsourced services for the human resources department (HR) in general and payroll work in particular, an increase of 12% compared to 2019. It can be said that combining HR with payroll services is a new trend of international businesses. For employees, outsourced salary calculation ensures a transparent salary policy, helping them feel secure to work and understand the value of their contributions. At the same time, HR also has more time to care, listen to career orientation and invest in helping employees improve professional skills. Besides, in order to increase the accuracy and rigor in human resource information management, businesses have started to apply technology to automate the payroll process. This helps businesses handle huge workloads gently and efficiently, while ensuring transparency and clarity. Going beyond “fulfilling the tasks”, a reliable service provider can also promptly answer questions about salary, insurance, employee benefits, and advise on new salary and bonus trends. and update legal regulations on labor law for enterprises. These factors contribute to increasing the connection between enterprises and employees. On the other hand, the high cost is a shortcoming that makes outsourced payroll services still not yet applied and maintained in some small and medium enterprises.
terra Payroll – Outsourced payroll service with extremely reasonable fees
terra Payroll provides a group of total payroll solutions for businesses, used to integrate with the Human Resource Management System – terra HR System. When using terra Payroll outsourcing service, all employees’ information, forms, and payroll will be updated and stored on the same online platform, ensuring confidentiality, integrity and transparency in the process. personnel information management.
In particular, to solve the cost concerns when making outsourcing decisions of businesses, besides combining payroll and technology to help businesses handle extremely light and efficient work, terra also offers extremely reasonable fees for businesses when using the outsourced payroll service terra Payroll.
In conclusion, the above solutions all have their own advantages and disadvantages and satisfy the conditions of each different business model. In general, both solutions contribute to improving transparency in the process of calculating salaries and bonuses between enterprises and employees.
Keywords
Related news
-
Gross Salary and Net Salary: What You Need to Know
Gross Salary and Net Salary are the two most common forms of receiving compensation in today's workforce. However, for newcomers to the job market, these concepts might be unfamiliar. In this article, we will consolidate valuable information to help you understand Gross Salary and Net Salary better, enabling you to make informed decisions when negotiating with employers. What is Gross Salary? Gross...
-
Basic Salary and Minimum Wage: Differences and Their Important Role
In Vietnam's salary system, both the basic salary and minimum wage play a crucial role in determining the earnings of workers and employees. This article will focus on the differences between these two types of wages and their significance in the current salary structure in Vietnam. What is the Basic Salary? [caption id="attachment_1855" align="alignnone" width="1498"] What is basic salary?[/caption] The...
-
How to choose the proper payroll service provider?
In order to solve the situation of slow and inaccurate salary payment, many businesses use outsourced payroll services to save costs and focus human resources on core business activities. So how to choose the proper payroll service provider for your business? What is payroll service? Payroll service (outsourced salary calculation) is a service to support businesses in managing salaries, bonuses,...
-
What is a piece wage? The information about piece wage you need to know
Today, instead of paying a fixed monthly salary, businesses often choose to pay a piece wage to improve work productivity. The following article will bring you the most useful information about this form of payment. What is a piece wage? [caption id="attachment_1660" align="alignnone" width="1000"] Piece wage is one of the most popular forms of salary payment today.[/caption] Piece wage is understood...
-
Transparency in wages – the talent retention strategy
Fairness and transparency in wages are always the top concerns of employees in today's society. Followed by a series of problems for businesses: how to retain talented people and attract young human resources. [caption id="attachment_1047" align="alignnone" width="1000"] Transparency in wages - the talent retention strategy[/caption] Non-transparency in salary - the cause of “separation” “Financial...
-
#Youmustknow: Salary computation and payment
Salary and the important role of salary computation Salary is established on the basis of the worth of labor power through an agreement between the business and the employer, and is regulated by economic rules such as supply and demand, value, etc. As a bridge between employees and businesses, firms must pay special attention when calculating and paying employees' salaries. This stage is directly...
-
New trend of HR industry: Applying technology to payroll
Register now to receive free support and advice on services from the terra team here! Payroll calculation is the most important task of the human resources department, directly affecting businesses and employees. In order to overcome the limitations and errors of previous manual salary calculation forms (books, Excel files, etc.), enterprises have started to apply technology to automate the salary...
-
5 companies providing reputable payroll services
Payroll services are becoming increasingly popular as a way to save time, human resources, money, and other resources. Let's find out the TOP 5 best payroll companies with terra. Talentnet's payroll service Talentnet appeared on the Vietnamese market for the first time with Human Resources Services of PricewaterhouseCoopers Vietnam. Over 20 years of establishment and development, Talentnet is currently...
-
Payroll Expert and 6 reasons why you need them
Payroll is one of the most important aspects of business– it builds financial stability among employees and boosts team morale. Many businesses, especially small businesses, tend to take payroll into their own hands and avoid outsourcing payroll. Managers and business owners spend hours calculating everything themselves, oftentimes juggling other roles in the business at the same time. Taking care...
-
4 Advantages of Payroll Service
HR departments cannot focus on higher productivity functions, as most of their productive hours are invested in managing payroll, accounts, taxes, and routine administrative work leading to a “saturated” state at the end of the day. Outsourcing payroll and administrative functions to external agencies helps companies strategize their efforts and provide coordination within a team to achieve...