Features of Flexible Payroll

of the enterprise on the inputs needed to use, including the labor factor. Therefore, the demand for labor increases or decreases depending on the scale of the market for goods and services of the enterprise, which is expanding or shrinking. Thus, it is easier to understand why the goal of using the time fund that each worker can provide is too dependent on the production scale of the enterprise, and faces great resistance when the market for consuming goods and services of the enterprise stagnates. In that case, with the existing labor force, in the short term, enterprises may be stuck in job arrangement, making it difficult to find a solution to increase the coefficient of using the working time fund. Therefore, many enterprises and organizations have prioritized the implementation of the second goal: Increasing the efficiency of using each unit of working time, which is essentially increasing labor productivity. This has been, is and will continue to be an important, strategic, necessary and adaptive goal in all fluctuating market conditions. In reality, businesses often encounter one of two situations: either the demand for goods and services of the business increases, increasing the demand for labor, or the market stagnates, which often occurs during recessions, causing the product consumption process to stagnate, pushing businesses into a state of surplus labor. Both of these cases can be resolved by flexible labor organization methods, in order to create ways and measures to increase the efficiency of using labor time. For example, when there is an impact of increased market demand for goods and services, it will lead to increased demand for labor. In order to meet the process of expanding the production scale of the business, wages will then increase (completely following the laws of the market), which can create unfavorable pressures on the output price of the business, because at this time the total cost has increased, which was preceded by an increase in salary costs. At that time, instead of hiring more workers, a flexible work organization will contribute to creating an increased level of labor productivity (corresponding to a small marginal cost of labor), which will be the best solution to satisfy market demand. Similarly, in the conditions of market stagnation, reduced production scale, surplus labor, union pressure against layoffs, at the same time, businesses also want to limit low

In addition, if the costs of additional human resources (due to disruption, job fluctuations, fluctuations in the workforce) are not met, flexible work organization will also be a savior for businesses. In this case, the goal and content of flexible work organization will be to share limited jobs, coordinate work more reasonably for the existing workforce, and try to retain skilled workers - a valuable resource of the business. The basic characteristics of flexible work organization are the unfixed length of working time, the boldness to break rigid regulations on the start and end of the working day, the flexibility in coordinating human resources corresponding to fluctuations in the workload, the change in concepts and ways of evaluating results as well as work performance, and the introduction of necessary management tools into the field of labor organization. This is the premise for applying flexible salary payment methods.

Flexible wages by themselves cannot express a complete concept no matter from which perspective they are understood. Flexible wages cannot be separated from the concept of the cost of using human resources, and at the same time, the income of the labor supplier. Flexible wages are still the amount of money paid for the labor factor in the production and business process of the enterprise, determined by the flexible payment method.

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As stated above, the "flexible" nature of wages does not depend on the nature but mainly on the method of wage payment, on the operation of the wage organization, in which the role of motivation, the role of encouragement, the promotion of higher labor productivity to achieve the goal of improving the efficiency of human resource use is especially emphasized. Therefore, the concept of flexible wages in both theory and practice must be placed in the concept of flexible wage payment method, based on the connotation of flexible wage payment method, to understand the connotation of flexible wages; that is, when implementing flexible wage payment method, the concept of flexible wages is inevitably formed. The nature, the method of determination, the expression of flexible wages, all start from the flexible wage payment method. Therefore, at

In some documents guiding the organization of wages of some business corporations, the authors almost do not mention separately and completely the concept of flexible wages. According to them, flexible wages are the result of the operation of flexible payment methods. In the framework of this thesis, the author tries to clarify the characteristics and recognition of flexible wages, through the concept of flexible payment methods. Flexible salary payment method is a salary payment method that originates from the characteristics of flexible labor organization in which the contents as well as the factors for salary organization (salary level, labor norms, salary unit price, salary payment method, etc.) are determined and applied flexibly and flexibly in accordance with the conditions of production organization, work results, efficiency of human resource use, financial capacity of the enterprise, correlation of supply and demand of human resources in the market, etc. Ensuring encouragement and promotion of employees' efforts, creating an important lever to improve labor productivity, completing tasks that are decisive to the overall production and business efficiency of the enterprise . In short, flexible salary payment method is a synthesis of measures, techniques, and arts of human resource treatment, to form salary levels, forms of salary payment, methods of salary payment, and mechanisms for generating salary sources, in order to create the strongest motivation to stimulate workers, creating high levels of labor productivity, compatible with the competitive pressure of the modern market economy. In this concept, flexible salary is clearly the result of applying flexible salary payment method. Here, there are also expressions of flexible salary and the distinction between the two terms flexible salary payment and flexibility in salary payment. In theory, these are two concepts with different connotations and expressions. Flexible salary payment takes flexible salary organization as the foundation. That is, salary payment that promotes the goal of general efficiency, through the application of unit prices, salary levels, and salary payment methods, corresponding to the form of flexible organization and use of labor. Flexibility in salary payment focuses on flexibility in the way of paying salary for each specific case, through the

Different salary levels, in different working conditions, with the aim of encouraging workers, or making the payment method diverse and achieving immediate effectiveness. Flexibility in salary payment is often a local solution, only related to the salary level paid to workers, but rarely related to a large extent to labor norms, salary unit prices, principles, salary organization and applied forms of salary payment. However, in specific cases, considering each type of job, each type of labor, flexible salary payment is also flexible in salary payment, so in some documents, many experts have agreed that flexibility in salary payment is an important factor to implement flexible salary payment methods.

1.1.3. Characteristics of flexible wages

Flexible wages have the following basic characteristics:

Firstly , it does not break the basic understanding of wages as the cost of money paid for the labor factor, which constitutes the total cost of production and business of the enterprise. This means that flexible wages are ultimately still commitments and agreements between the employer and the labor supplier, based on the general level of labor prices in the labor market. However, here, the way of paying wages does not follow available principles and methods, but is entirely based on the agreements reached between the employer and the employee on labor prices for each type, at each time, in each market.

Second , the source of salary basically depends on the financial capacity of the enterprise, but is not separate from the subjective assessment of the user about the achievements that can be achieved by the workers they hire, that is, the benefits and efficiency that the workers can create for the enterprise.

Third , unit prices and wages are hardly rigid, fixed regulations for all types of labor in different cases, at different times. This also means that flexible wages are chosen for each type of labor, in specific working conditions at different times.

Flexible pay is not a universally applicable form for all types of workers.

Fourth , the principle of agreement is the red thread, the foundation for flexible salary payment. When negotiating salary, the interests of the enterprise are often evaluated on the basis of the overall benefits that flexible-paid workers can create together. Therefore, enterprises often choose the work stage, the type of labor performing that work stage in certain circumstances to pay flexible salaries. If the analysis and assessment of the enterprise on the overall profit level does not ensure that it is greater than the total flexible salary that the enterprise pays, it may lead to an increase in the salary fund, and therefore the ultimate goal of human resource management and use will not be achieved. This is the secret, and at the same time, a strict condition for all processes of building and implementing flexible salary payment plans.

1.1.4. Characteristics of flexible salary payment method

In fact, the organization of wages in enterprises has at least two forms applied, which are time-based wages and performance-based wages. Time-based wages is the form in which each employee receives a salary, depending on the number of units of working time (hours, days, weeks, months) and the salary according to their rank. Time-based wages are not only applied to managers, service workers, and security guards, but also to those whose work has been strictly regulated on the assembly line, controlling automatic equipment. Of course, in the eyes of management experts, the form of time-based wages can appear more loopholes in labor management, and is not a way to maintain optimal labor use. Especially when the system of titles and standards to check and evaluate the self-awareness and work performance of employees are incomplete or not strict, it will make the time-based wage system less effective. Pay based on performance is a form of payment in which the salary each employee receives depends directly on the work completed (including

including all the work that has been inspected and accepted) and the unit price of salary for each unit of that work volume. The volume of work here is a general convention to refer to a unit of work, a unit of completed product, manufactured details, performed work functions... The unit price of salary is the amount of salary that must be paid corresponding to a volume of work that has been completed and inspected. The salary system based on work performance is highly appreciated by managers because it creates many benefits for employers. Tying the personal interests of the worker to the volume of work and the quality of the work he performs has created a great motivation for production. Fredrick Winson Taylor believes that paying wages according to work will become a tool to force workers to comply with professional labor discipline - a type of discipline that is both administratively coercive and economic. In the capitalist production system, performance-based wages are also a means to increase the exploitation of surplus value and accelerate capitalist accumulation. Many unions have opposed this form of wage payment, demanding a review of labor norms, additional costs to improve working conditions, and changes in the unit price of wages in a more favorable direction when workers have exceeded the norm. Therefore, there have been social efforts aimed at reforming the form of performance-based wages to make them more flexible and more or less satisfy the demands for workers' benefits. These are combining performance-based wages with bonuses, progressive unit price wages, piecework wages based on the volume of work for groups, or both piecework wages and combining flexible forms and reward regimes, increasing other material and spiritual benefits for workers. These forms have attempted to change workers' attitudes towards each unit of completed work volume. The improvement of wages and final income levels for workers has gradually changed the relationship between workers and employers in a positive direction. In many enterprises, especially those managed by the government, two forms of wage payment have basically been applied.

as above. In the form of payment according to work performance, there is both fixed unit price payment, mainly applied to work completed within the norm, and incentive payment outside the fixed unit price. The incentive salary system has a great effect in promoting increased labor productivity, exceeding the norm. Thanks to the incentive motivation of high salary levels, due to the superiority of labor productivity, the spirit of self-awareness in labor, first for oneself, then for the prosperity of the enterprise, in each worker has been enhanced. Invisible labor discipline has become stricter, originating from the unit price agreement for payment according to work. The foreman or human resource manager, instead of having to supervise the work process of the workers, has switched to the function of monitoring, inspecting and accepting the results of labor. Many intermediate costs for management have been eliminated but the efficiency of production has still increased. However, in essence, wages paid according to work performance must still be closely linked to the labor norm system and some non-economic regulatory principles. Without labor norms, it will be impossible to establish a unit price for wages, thus lacking a valid basis for evaluating labor results and paying wages. In other words, labor norms as a relatively stable framework force the enterprise's wage system to be determined on it, taking it as the basis. The fluctuation of wage levels for the same type of work is mainly due to the fluctuation of individual labor productivity, of labor prices, that is, the amount of money paid for each unit of labor time, and rarely due to changes in labor norms. On the other hand, the concept of the correlation of wage levels between types of labor in the same profession, or different professions in the same enterprise, the same industry, has given rise to subjective regulatory measures. Therefore, to some extent, the form of enterprise salary payment can become rigid. This is more obvious in enterprises that rely too much on the government's salary scale system, depending on the labor norm system that is rarely adjusted to be compatible with the development of new production techniques and technologies. The "rigidity" of the form of salary payment has

weaken its inherent motivational role, and at the same time hinder the ability to attract highly qualified workers. In fact, many enterprises have designed and applied a system of labor treatment policies that closely follow the "natural" requirements of the market, willing to abandon outdated frameworks in determining unit prices, calculating wages, and regulating the method of wage payment, in order to create effective competitive methods in the labor market. A new way of behaving in labor remuneration has emerged, proposed by administrators, to make the wage system more flexible and more effective, especially for high-quality workers. This is also an inevitable necessity, the natural origin of the formation of flexible wage payment methods. With the concept of flexible wage payment methods cited above, it can be reaffirmed that flexible wages are not a form of wage organization that is completely different from traditional forms of wage payment. It is just a variation of the way and method of paying wages, adapting to each specific case of work, each type of labor, but still based on two basic forms: either paying wages according to work performance; or paying wages according to time. However, the flexible payment method still has some differences as follows:

Firstly , for each type of work, each specific type of labor is selected to apply flexible salary, salary unit price, labor norms, methods of determining the results of the work performed, salary levels... basically based on the agreements, consensus between the employer and the employee, based on the general orientation regulations of the employer and has full authority to decide on remuneration policy. In this case, the practices on salary levels, traditional salary management mechanisms can be temporarily broken, instead, the common efficiency goal will determine the measure of work results, the perspective of evaluating results, the consensus on unit prices, and thus form flexible salary levels.

Second , flexible wage arrangements tend to increase marginal costs of labor within a narrow range (as shown in the characteristics of wage levels).

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