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Data on Training and Development Activities of Luxdecor Vietnam Joint Stock Company's Employees in 2017-2019


Depending on the necessity, based on actual working conditions to consider, if appropriate, make a report for the Company's leaders to make a decision on going to training and a plan to support funding and work during the training period.

Table 2.3. Data on training and development activities of Luxdecor Vietnam Joint Stock Company's employees in the years 2017-2019



Year

Number of newly trained employees (people)

Number of employees

be nurtured (person)

Total cost (million VND)

2017

10

35

105

2018

8

42

160.5

2019

15

58

225

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Data on Training and Development Activities of Luxdecor Vietnam Joint Stock Companys Employees in 2017-2019

Source: Organization - Administration Department, Luxdecor Vietnam Joint Stock Company

Thus, the training and development of employees is being paid much attention at Luxdecor Vietnam Joint Stock Company, and has achieved very positive results, ensuring the technical expertise, skills and abilities of employees to meet the requirements of work and personal development of employees. However, the company still needs to have a longer-term plan, arrange and encourage creating conditions for employees and workers to be more active in registering to participate in training at higher levels, in order to prepare human resources for the development of the company in the following years.

2.2.5. Current status of employee motivation

2.2.5.1. Financial motivation

Motivate through salary and bonus

Using salary to encourage employees is a basic form of labor stimulation to help employees work better. Salary is not only a means for employees to be able to maintain their lives, but it is also the recognition of the enterprise for the contributions of employees to the organization.

The company is applying two salary systems: Actual monthly salary (productivity salary) and salary used as the basis for social insurance contributions, calculating salaries for holidays, Tet, annual leave, and social insurance benefits. Productivity salary payment is implemented as follows:


- Basis for calculating salary for employees: Based on signed labor contract agreements according to labor law; Based on the actual production and business situation of the unit.

- Salary payment method: Employees in the Company are paid in the form of piecework wages for the direct production sector and time wages for the indirect production sector.

+ Piece rate salary: The company applies a piece rate salary system by group. In these groups (teams), when there is a production order from the production manager to the workshops, the team will base on the number of products, work assigned from the production order and the unit price of the product to calculate the salary for the workers in the team.


The calculation formula is as follows:

L SP k .G k H

i Hi

In which: L i : Salary of worker i

G k : Unit price of product k

SPk: Number of products produced by the team in the month

H : Total coefficient of the whole group

Hi : Coefficient of worker i

+ Time-based salary payment method: Applied to the indirect production service block, including: Company Board of Directors, Sales - Import-Export Department, Quality Control - Warranty Department, Financial Accounting Department, Organization - Administration Department, Technical - Research and Development Department.


The calculation formula is as follows:

L M i .C i H

i

i N .

In which: Li : Monthly salary of employee i

i

M Q

Mi : Average salary of the whole company; C

Q : Total salary fund of the whole company

ΣC : actual number of employees working in the whole company

N : Number of working days in the month

Ci : Actual number of working days of employee i Hi : Coefficient of employee i


Table 2.4. Salary coefficient regulations of Luxdecor Vietnam Joint Stock Company


STT

Position title

Coefficient

1

Company Director

3.0

2

Vice president

2.6

3

Department Heads, Workshop Managers

2.4

4

Deputy Head of Department, Workshop Manager

2.2

5

Indirect block staff

0.9-1.4

6

Probationary contract

0.7

Source: Accounting - Finance Department

The salary coefficient of employees is considered on the basis of working time, assigned job responsibilities, adjusted to increase in connection with the production and business efficiency of the unit, the assigned responsibilities are decided by the Board of Directors. Thus, in the Company's coefficient, there is no big distinction in the employee group, such as separating the group for professional department staff and the group of service staff. The adjustment to increase the coefficient only takes into account the assigned responsibilities, the Company also does not have specific regulations on the increase period and the increase level. Therefore, when proposing a salary increase, there will be many subjective factors of the leader, the employee will have a certain comparison if the salary coefficient is not fair, the assessment is not objective.

Table 2.5. Average salary and income of employees in the period 2017-2019

( Unit: Thousand VND/month)


Year

Average salary

Average income

2017

11,352.8

15,598.2

2018

13,755.3

19,275.3

2019

15,186.5

22,884.6

Source: Calculated from data of Financial Accounting Department

We see that the average salary and income of employees in the company have continuously increased in the period 2017-2019. This is also consistent with the company's production and business situation in this period, achieving many positive results. The company's revenue and profit still maintain a high growth rate, leading to a corresponding increase in the salary fund and income sources.


different for workers. The average salary in 2018 increased by 20% compared to 2017, and in 2019 increased by 10% compared to 2018. The average income grew more steadily, about 20% or more each year.

In addition, the company also deducts from the salary fund (not the bonus fund deducted from profits) for rewards and applies as follows:

- Deduct 2% from the salary fund to establish a fund for the following purposes: Encourage employees to perform jobs requiring high technical expertise and skills, and employees with qualifications and abilities but unreasonable salary coefficients who contribute greatly to the company's efficiency and production and business.

- Deduct 3% from the salary fund to establish a bonus fund from the salary fund to reward employees with high productivity, high quality, and excellent performance in work, voted by affiliated units, departments, and divisions of the company every quarter. Employees with especially outstanding achievements, those with inventions and initiatives that bring economic efficiency to the company.

Table 2.6. Summary of salary assessment survey results in 2019


Survey content

Answer options

Quantity

Percentage


Is your salary commensurate with your work results?

1. Very suitable

70

79.55

2. Suitable

15

17.05

3. Not suitable

3

3.4

4. Other opinions

0

0


Are you satisfied with your current salary?

1. Very satisfied

72

81.82

2. Satisfaction

10

11.36

3. Dissatisfied

6

6.82

4. Other opinions

0

0

In your opinion, how does the salary at your company compare to similar companies in the industry?

1. Higher

65

73.86

2. Equivalent

19

21.59

3. Lower

4

4.55

4. Other opinions

0

0

Source: Author's survey at Luxdecor Vietnam company

Bonus level from salary fund:

+ Regular quarterly rewards: from 300,000 VND - 1,000,000 VND/person/time.

+ Special rewards: from 500,000 VND - 1,000,000 VND/person/time


+ In case of rewarding inventions and initiatives: depending on the nature and level of effectiveness, the company's Board of Directors will decide on the reward level but not more than 15% of the effectiveness of that invention or initiative.

Thus, it can be seen that the salary and income of employees at Luxdecor Vietnam Joint Stock Company are quite high compared to the salary level of companies in the same curtain industry, which basically helps employees have a stable life and peace of mind at work. This shows that if salary is considered a motivating factor, the salary that employees receive at Luxdecor Vietnam Joint Stock Company has really done that, because the majority of employees are satisfied with the salary they receive and think that it is commensurate with their capacity and effort for the company. This will encourage employees to be dedicated to their work and stick with the business. In addition, the salary calculation formula is not too understandable, so employees can easily calculate their salary.

However, 6.82% of employees are not satisfied with their salary. Although this rate is quite small, the Company should review the salary work in detail to gain consensus from all employees. It is possible that the productivity salary that the Company is implementing does not take into account the assessment of each individual's work performance, so there will be comparisons; not taking into account the professional level factor will not encourage employees to study to improve their professional level, practice skills to work proficiently and effectively, and will not create competition within departments, production teams, etc. This will cause a mentality of dependence in a part of employees who rely on other employees, not promoting the ability of employees to work more creatively and positively. If the company cannot maintain the current good salary level, this shortcoming will be revealed more clearly.

Welfare and reward system

In addition to salary, Luxdecor Vietnam Joint Stock Company also attaches importance to rewards and welfare regimes to encourage both material and spiritual aspects to motivate employees to work enthusiastically and achieve better results. Bonuses are not only additional income for employees but also demonstrate the leadership's concern for the material and spiritual life of employees, demonstrating the organization's sharing of success with all employees.


In addition, bonuses are a recognition of achievements and praise for the achievements of employees. Therefore, bonuses are a very important measure to motivate employees of Luxdecor Vietnam Company.

Every year, based on the Company's production and business results, the Director and the Board of Directors decide on the specific bonus level for each subject and type of bonus. By using a variety of bonus forms with different bonus levels, the Company has created a comfortable mentality for employees, showing the Company's leaders' concern not only for the employees themselves but also for their families, so employees are very active, try to work hard and are more attached to the Company.

The Company's total bonus includes the following sources:

+ Bonus is deducted from the Company's salary fund.

+ Bonus from reward fund: taken from the Company's profit (accounting for 9% of the Company's profit).

+ From other sources

Every month and every quarter, the department heads and the company's board of directors hold meetings to evaluate and consider the performance of individuals and departments in the company to award rewards. Currently, the main form of reward applied by the company is cash rewards for employees in the following forms:

- Bonus for completing 6-month and 1-year plans: based on the individual's contribution to the completion of the Company's plan. This bonus is based on the employee's work results and their salary to determine the bonus level. Usually, depending on the work results, employees are awarded an additional 2-10% of their salary.

- Rewarding emulation titles: Based on the Company's employee evaluation results, the Company considers, votes and rewards advanced, excellent and typical individuals and collectives of workers in the year. The source of the bonus is taken from the bonus fund and the bonus level is normally regulated as follows:

- Advanced and excellent individual workers: from 500,000 - 1,000,000 VND/person

- Advanced and excellent labor collective: from 1,000,000 - 3,000,000 VND/collective.

- Extraordinary bonus: This is a form of reward for individuals and groups who have excellently completed assigned tasks and work (usually rewarded mainly for direct production workers). On occasions of celebrating major national holidays


water, celebrate the Company's anniversary,.. The Board of Directors launched a competition to all employees in the Company. Collectives and individuals with outstanding achievements in the competition were decided to be rewarded by the Company.

- Bonuses on holidays, New Year, congresses...: Depending on the financial situation, every year, the Company decides on the bonus level for employees on holidays, New Year, and major events of the year of the company. Among these bonuses, the Lunar New Year bonus is a very important content, because it is often of great value, and is of great interest and expectation to employees.

In addition to salary and bonus, employees are also very interested in the benefits they receive outside of their salary such as travel expenses, lunch, insurance, holidays, etc. Currently, Luxdecor Vietnam Joint Stock Company implements mandatory benefits according to the provisions of law. After the probationary period ends, employees are signed an official labor contract and enjoy all the benefits prescribed by the State. The company fully implements the social insurance and health insurance regime for employees so that employees feel that their rights are guaranteed.

Employees are entitled to take time off and receive full pay on holidays and Tet:

- New Year's Day 01 day (January 1st).

- Lunar New Year: 04 days (01 last day of the year and 03 first days of the lunar new year).

- Southern Liberation Day: 01 day (April 30th).

- International Labor Day: 01 day (May 1st).

- National Day: 01 day (September 2nd).

- Hung King's Commemoration Day: 01 day (10th day of the 3rd lunar month).

(If the above holidays coincide with weekly holidays, employees will be given compensatory days off on the following day; other special cases will be decided by the Board of Directors depending on each year and the general situation)

Employees are entitled to personal leave with full pay in the following cases:

- Getting married: 3 days off.

- Child gets married: 1 day off.

- Death of father, mother (including husband, wife), death of wife or husband, death of child is entitled to leave


03 days.

(Other cases arising will be decided by the Board of Directors based on the report content of the employee and the Organization - Administration Department)

Female employees who have worked at the Company for 24 months or more from the date of signing the contract to the date of giving birth are entitled to the following benefits:

Case 1 : 6-month maternity leave according to State regulations. Receive maternity benefits paid by the Social Insurance Agency according to current regulations.

Case 2 : Due to the nature of production and business, the Company encourages employees to return to work 4 months after giving birth. In this case, employees are entitled to additional benefits at the company:

+ Maternity allowance of 3 months of salary paid for Social Insurance

+ Receive salary from the Company

Table 2.7. Some welfare levels according to company regulations, implemented in 2019


STT

Welfare content

Amount

1

International Labor Day 1/5

200,000 VND

2

National Day September 2

200,000 VND

3

Company Establishment Date

500,000 VND

4

March 8 and October 20

200,000 VND

5

International Children's Day

200,000 VND/child

7

Mid-Autumn Festival

200,000 VND/child

8

Excellent student award

200,000 VND/child

9

Sick worker

500,000 VND/time

9

Workers get married

2,000,000 VND

10

Father, mother, children sick

200,000 VND/time

11

Funeral of the parents

1,000,000 VND/time

12

Summer vacation

7,000,000 VND/year

13

New Year's Day

1,000,000 VND

14

Lunar New Year

3-5 months basic salary

15

Critical Illness Benefits

3,000,000 VND/time

16.

Sudden hardship allowance

2,000,000 VND/time

Source: Planning - Finance Department and Organization - Administration Department

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