Compare Average Income of Companies in 2018


Through that, we can see that the organization of labor and wages in the company is reasonable and ensures the principle that the rate of labor productivity growth must be greater than the rate of wage growth. Because the average wage increases, the life of workers is improved. The rapid increase in labor productivity creates conditions for the company to increase accumulation and expand production investment...

Responsibility always goes hand in hand with benefits – this is the guiding principle in salary payment at the company. Increased labor productivity, high efficiency of the organization, employees will also receive corresponding increase in remuneration. In addition to the fixed salary, employees also receive some other income.

In general, increased income leads to improved living conditions for employees and their families. This in turn encourages them to be more enthusiastic about their work, creating greater efficiency in the company's production and business.

Salary calculation method currently applied at the company:

The company is operating in many fields but can be divided into two main fields: Tourism, travel and some other services, so to facilitate salary calculation and payment to employees, the company uses both forms of salary: time salary and product salary applied to the whole company.

- Period I: Time salary payment or also known as decree salary.

At Vietnam Trade Union Tourism Company Limited, time salary is calculated according to the formula:


In there:

LTG= [ HSL + HSPC ] x Ltt

22

x NC

LTG: Time wage. HSL: Salary coefficient. HSPC: Total coefficient of allowances. NC: Actual working days Ltt: Basic salary/ minimum salary

The salary coefficient according to the formula that the company is applying is calculated according to the State's regulations based on the following factors: position, degree, number of years of work. Therefore, each individual will have different remuneration levels depending on the State's regulations and allowances according to the company's regulations.


- Period II: payment of revenue salary or also known as planned salary.

Departments and units base on the unit price decided by the management to calculate salary according to the following formula:

QL = Labor x Average salary



Time:

In there:

QL: Total payroll LD: Total number of employees

DGTH: The unit price for implementation is calculated based on the percentage of completion of the set plan. Revenue salary (plan salary) will be equal to the total salary fund minus the time salary.


LKH= QL - LTG

After having the total planned salary, we calculate the unit salary price according to the following formula:

DGTL= LKH

NCTHS

DGTL: Planned salary unit price

LKH: Total planned salary of the unit

NCTHS: Total working days according to unit coefficient

NCTHS = (HSTN x DTĐ x NC)

HSTN: Responsibility coefficient DTĐ: Competition points NC: Working day With the salary unit price, we calculate the salary for the company's staff according to

recipe:

LKH = NCTHS x DGTL + Allowance (if any)

It can be seen that, in addition to strictly complying with the State's regulations on salary payment to employees, the company also makes great efforts in using salary as a tool to motivate employees. The above form of salary payment partly reflects the company's concern for employees.

Considering the average salary that employees receive at Vietnam Trade Union Tourism Company Limited and comparing it with the salaries of other companies,


Other enterprises in Hanoi found that employees at the company have a fairly good income compared to the general level. Specifically: among the types of enterprises reporting on the salary situation in 2018 in Hanoi, FDI enterprises lead in salary payments to employees, reaching 5.85 million VND/person/month; Enterprises with dominant state capital contributions reached 5.3 million VND/person/month; This figure at single-member LLCs with 100% state capital is 5.25 million VND/person/month. At Vietnam Trade Union Tourism Company Limited, the average salary is 5.6 million VND/person/month. This can be seen more clearly in the chart below:

Average salary

6

6

6

6

6

5

5

5

5

5

5

FDI enterprise block Joint stock company block Limited liability company block One member limited liability company Dominating capital contribution of member company by the state Vietnam Trade Union

country holds 100% charter capital


Average salary

Chart 3.1: Comparison of average income of companies in 2018

(Source: Author's synthesis after consulting the 18th year salary situation report in Hanoi of the Hanoi Department of Labor - Invalids and Social Affairs)

To assess the level of satisfaction with salary of employees in the company, the author conducted a survey with the question of whether employees feel satisfied with the salary they receive. The answer obtained was 9 respondents strongly agreed, 29 agreed, 42 felt normal, 16 disagreed and 5 strongly disagreed. It can be seen more clearly at:



Strongly disagree Disagree Neutral Agree

Totally agree


9; 9%5; 5%

16; 16%

29; 29%


42; 41%

Chart 3.2: Employee evaluation of company salary

(Source: Survey results in May 2019) Employee satisfaction with salary is differentiated due to the impact of many factors. The first one is the difference in working conditions and awareness of the two groups of workers, direct and indirect. The distribution of salary to employees still has limitations, the scoring to calculate the productivity coefficient is not specific, still depends a lot on the assessment of others, and the level of contribution and dedication of each person to the company is not clear. That greatly affects the fairness in salary payment, leading to a reduction in the incentive in the issue of remuneration. On the other hand, the productivity coefficient between excellent, good, fair, and average workers has a small difference, so the motivation has not been promoted.

strive for workers

Bonus mode

- Like most other state-owned companies, Vietnam Trade Union Tourism Company Limited also has bonuses on major national holidays such as: New Year, April 30 - May 1, March 10, September 2, July 8.

- Annual bonus:

Annual bonus = rate × average monthly salary

The rate is based on the employee's 12-month work performance.


Although the above bonus distribution to individuals has taken into account the work efficiency and the level of work completion of individuals, the determination of the number of bonus points for safe operation is still average, in a way of keeping the peace. This thinking has greatly affected the working spirit of employees because whether they work well or not, they all get the same bonus points. Not only that, the criteria for calculating bonus points are also general, there is no separate way to determine them in accordance with the content of each job... that has somewhat limited the encouragement for employees to work actively and improve productivity...

Benefits and services

- Mandatory benefits

These are the minimum benefits that organizations must provide to employees, protected by law. Mandatory benefits can be: types of guarantees, social insurance, unemployment benefits, health insurance. In Vietnam, mandatory benefits include 5 social insurance regimes for employees: sickness benefits, work accident or occupational disease benefits, maternity, retirement and death benefits.

These benefits are fully implemented by the company. Immediately after the employee signs an official labor contract with the company, the General - Human Resources department will immediately implement them.

- Voluntary benefits

These are the organization's own benefits, built and offered based on the company's ability to pay and the company's management's attention.

+ Guaranteed income and retirement benefits

+ Money paid to employees for time not worked.

+ Benefits for flexible work schedule

- Insurance benefits

+ Health insurance

+ Life insurance

+ Disability insurance


In addition, the company also has a number of other benefits and services such as travel allowances. Specifically, providing transportation for all levels of staff if they need to go on long business trips, and providing gas allowances for employees if their work requires travel.

Thus, it can be seen that the company is very concerned about the security and life of its employees. The benefits are always fully implemented, creating a great motivation for employees to stick with the company.

3.2.2.2. Create motivation through non-financial incentives

a. Analysis and evaluation of work performance

Job analysis

If you want to do a good job of motivating employees, you must make them clearly understand their tasks, responsibilities, authorities, working conditions and performance standards for the work they are assigned.

Job analysis process at Vietnam Trade Union Tourism Company

- Select the job to analyze

Due to the nature of the company, which mainly provides tourism products and services, the characteristics of the jobs at the company are also very specific and highly differentiated. However, the company has only selected high-ranking positions and important jobs based on subjective perceptions for clear analysis. Other positions (usually direct labor jobs) have not been analyzed in detail, there are only general job descriptions or performance standards.

- Choose how to collect relevant information

The company mainly uses two methods of information collection: using available forms and typical interviews.

- Proceed to collect relevant information

The company mainly collects information about the responsibilities and requirements of the job for employees but has not yet focused on information about the working conditions of each specific job, relationships and authority with related departments, performance standards and job evaluation.

- Processing information obtained after collection


The administrative and human resources department will collect all the forms issued to the investigated staff after they have filled out the job description information in the case of using the sample form.

- Adjust the job analysis table if necessary and approve it for use.

use

The job description results after being collected to the Organization - Human Resources department,

will be reviewed, investigated, and adjusted by the department head if necessary. These job descriptions are used for many different purposes, but all serve the purpose of strengthening the company's human resources. For example, if the company lacks employees, this table will be used to describe and recruit; serve the purpose of evaluating the performance of employees; serve as a basis for rewarding, reprimanding, or planning training, etc.

However, at Vietnam Trade Union Tourism Company Limited, job analysis activities have not been focused on. Through a practical survey, the following results were obtained on how to let employees know their tasks:

Strongly disagree Disagree Neutral Agree

Totally agree


5; 5%9; 9%

15; 15%


42; 42%

29; 29%

Chart 3.3: Survey results on criteria for employees to be analyzed for work

(Source: Survey results in May 2019) The job analysis process is sometimes not carried out according to the correct procedure, but mainly the job analysis is conducted based on the industry's labor standards. The tasks, requirements and performance standards are


given in a general way. There is no coordination or agreement between the human resources department and the direct manager in determining the tasks, responsibilities, and performance standards for employees. This leads to a situation where the tasks, responsibilities, and performance standards, although given, are not suitable for reality, and in the long run, affect the goals and motivation of employees.

Evaluation of the performance of tasks and work of employees At Vietnam Trade Union Tourism Company Limited, the evaluation of performance

The performance of the tasks and work of the staff is evaluated by the most direct leader. There are the following bases for employees to evaluate the performance of employees: the level of completion of assigned tasks of individuals in the department, the employee's outstanding achievements or contributions in the work... Normally, the direct leader will have a primary assessment to see what the employee is classified as and discuss, comment, and come to a conclusion at department and division level meetings.

The company uses the following evaluation criteria: Level and progress of task completion; number of working hours per month; level of compliance with disciplinary regulations.

Table 3.7: Evaluation table of work performance and task completion of employees according to scoring method

- Employee name

- Title

- Part

- Evaluation period from …………to…………..

Factors to consider

Rating Points

Result


Level of task completion

Good Fair

Medium

Least


Labor type...

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Compare Average Income of Companies in 2018

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