Home / Labor Results

Objectives and Operational Directions of Saigon - Hanoi Commercial Joint Stock Bank Shb

CHAPTER 3

SOME SOLUTIONS AND RECOMMENDATIONS TO IMPROVE THE SALARY PAYMENT PLAN BASED ON WORK RESULTS AT THE BANK

SAIGON - HANOI JOINT STOCK COMMERCIAL BUSINESS SHB


3.1. Objectives and directions of operation of Saigon - Hanoi Commercial Joint Stock Bank SHB

Maybe you are interested!

3.1.1. SHB's business development goals and directions

According to the Resolution of the 2017 General Meeting of Shareholders, the development direction of Saigon - Hanoi Commercial Joint Stock Bank SHB in the period of 2017 - 2021 will aim to achieve the following key goals:

Objectives and Operational Directions of Saigon - Hanoi Commercial Joint Stock Bank Shb

To become the leading modern, multi-functional retail bank in Vietnam and by 2021 to become a strong financial group according to international standards with modern technology infrastructure and professional staff.

Always maintain position and direction with the goal of leading in the top 5 leading commercial banks in Vietnam, bringing the brand to reach the continental and international vision.

Constantly increase brand value with the motto "Brand is the asset of the bank, the honor of bank staff".

Continuously improve management and administration capacity, risk management, internal audit and control, focusing on promoting transparency and honesty in all activities throughout the system. Ensure continuous innovation, creativity, and flexible adaptation in all activities; build competitive strategies to create differences, constantly listen, learn, improve, innovate, and develop.

Building a youthful, dynamic SHB with a professional, trustworthy working environment. Creating pride in SHB's cultural identity "Creative, united, creating development opportunities for everyone, aiming at the value of honoring individuals with good achievements".

3.1.2. Objectives and directions of human resource management and salary management of Saigon - Hanoi Commercial Joint Stock Bank SHB

Not only setting out SHB's general development goals, the 2017 Shareholders' Meeting Resolution also sets out the following human resource management goals:

Building SHB culture into a spiritual element that connects throughout the entire human resources system and within the organization.

Develop professional and effective human resource management, compensation and training strategies, suitable for each development stage, with long-term orientation based on the Bank's competitive and business strategies; always perfect and innovate effective human resource management processes with modern and advanced information technology and science platforms.

Continuously promote the increase not only of productivity but also of quality, ethics, discipline, style, and service attitude of employees in the organization. At the same time, always ensure the highest benefits of employees, ensuring that the rights of SHB employees are always higher than the average of the market and society.

In particular, the General Meeting of Shareholders also set out the following goals for salary and remuneration management for employees at SHB:

Continuously improve the overall salary payment work according to the core orientation "Employees' salaries must ensure the direction towards getting rich because of salary, living on salary".

Build, perfect, and modernize the development of regulations, rules, and organize the implementation of salary payment plans in a reasonable, accurate manner, suitable to SHB's human resources conditions to ensure maximum rights and benefits for employees, especially the salary payment plan based on work results.

Establish a system of performance evaluation criteria, salary coefficients of forms, and reasonable salary payment plans. At the same time, salary payment must be based accurately on the work results and contributions of employees to the organization's business and operational results.

Always innovate and diversify reward forms, offering different reward levels to stimulate employees to increase productivity even more.

Ensure the highest living standards of workers from wages. In addition, it is necessary to ensure the increase of allowances, the implementation of financial benefits outside of wages for workers and their families, creating opportunities for highly qualified employees, seniority, many achievements, and contributions to have the opportunity to borrow money with low interest rates from SHB.

3.2. Some solutions to improve the salary payment plan based on labor results at Saigon - Hanoi Commercial Joint Stock Bank SHB

From the reality analyzed in Chapter 2, we can clearly see that although the salary payment plan based on labor results at Saigon - Hanoi Commercial Joint Stock Bank SHB has achieved many advantages and has many conveniences in organization and implementation, however, there are still many weaknesses and difficulties.

limitations need to be resolved and overcome. From that reality and the goals, general operating directions and human resource management, salary management in particular of SHB mentioned above, I would like to propose some solutions to perfect the salary payment plan based on labor results at Saigon - Hanoi Commercial Joint Stock Bank SHB as follows:

3.2.1. Reasonable adjustment to increase nominal and real wages for employees at Saigon - Hanoi Commercial Joint Stock Bank SHB

In recent years, although SHB's profits, total salary fund and salary fund based on labor results have all increased, the actual salary, living standards and income from salary of SHB's employees have improved very little.

Specifically, in 2017, the total salary fund increased by 5.5%, the total salary fund based on labor results also increased by 13.3% compared to 2016. However, in the meantime, according to the report of the General Statistics Office of Vietnam, the consumer price index of Vietnam in the two years 2016 - 2017 increased by an average of more than 15%. This shows that the nominal salary that employees working at SHB receive tends to increase every year, but the increase in nominal salary is slower than the fluctuation in average consumer prices, so the real salary of employees at SHB is decreasing, the income and quality of life of employees working at SHB are also decreasing. To avoid this situation, when organizing the calculation and payment of salaries for employees at SHB, the unit should consider nominal salaries in close relationship with actual salaries to promptly adjust the salary coefficient, adjust the salary level to help employees feel secure about their income as well as have conditions to improve the quality of life, reproduce labor when working at SHB.

3.2.2. Reasonable adjustment of bases and formulas for calculating salary based on labor results in the form of converted business salary payment for employees at Saigon - Hanoi Commercial Joint Stock Bank SHB

At Saigon - Hanoi Commercial Joint Stock Bank SHB currently, the application of

use coefficient(Actual number of working days of employee during salary review period /

The number of working days of the salary review period according to SHB's regulations) in the salary calculation formula based on labor results in the form of converted business salary payment is causing many disadvantages and injustices for some laborers of the Bank, especially those who do jobs that are not continuous or regular in nature.

The job is extroverted in nature, often having to work outside the Bank's headquarters.

To solve this situation, SHB needs to monitor, review and make reasonable adjustments to the basis and formula for calculating salary based on labor results in the form of converted business salary payment to further improve the effectiveness of salary management, improve labor productivity as well as perfect the salary payment plan based on results.

labor. SHB Board of Directors may review and remove the coefficient.out of work

Salary calculation method based on labor results according to converted business salary payment method

by the Performance Factor includes the coefficient.

3.2.3. Complete the set of criteria for evaluating the work performance of employees working at SHB as a basis for paying salary based on work results at Saigon - Hanoi Commercial Joint Stock Bank SHB

In recent years, Saigon - Hanoi Commercial Joint Stock Bank (SHB) has put into use a set of criteria to evaluate the work performance of employees such as KPIs and ISO. However, the application to determine the work performance of employees at SHB still faces many obstacles due to the differences in job positions at SHB or the differences in the work performance of employees in SHB. Therefore, in order to complete the plan to pay salaries based on work results for employees, SHB needs to speed up the completion and build all sets of criteria to evaluate work performance according to KPIs for job positions receiving salaries based on work results in the shortest time, on the basis of ensuring reasonableness, efficiency, and suitability with the characteristics of the organization and employees in the whole unit.

For positions that have completed the development of performance evaluation criteria according to KPIs, SHB needs to proactively and quickly develop legal bases, indicators, and regulations on payroll levels and norms based on available job descriptions, job standards, and performance evaluation criteria according to KPIs.

For positions that have not completed the construction of a set of performance evaluation indicators according to KPIs, SHB can simultaneously combine the construction of a set of performance evaluation indicators according to KPIs with the construction of legal bases, indicators, and regulations on payroll levels and norms on the basis of consideration.

SHB's conditions and the quality of human resources of the organization and society.

3.2.4. Improving the efficiency of labor payroll in performance-based salary payment at Saigon - Hanoi Commercial Joint Stock Bank SHB

In the work of building internal regulations and regulations for implementing the salary payment plan based on labor results at SHB, we see that the work of determining the number of employees receiving salary based on labor results is sometimes not really suitable, specifically compared to the number of employees receiving salary based on labor results in 2017, the actual number of employees increased by more than 15% compared to the set number. This forced SHB to adjust and supplement the total salary fund paid based on labor results in 2017.

Thus, in the coming time, SHB needs to further strengthen the management of labor quotas, specifically: SHB's personnel quotas must ensure the correct quantity and quality of personnel according to the job requirements of the position and title, while ensuring savings, in accordance with the capabilities, strategic goals and production and business situation of SHB, avoiding too large fluctuations in the total salary fund paid to employees according to work results.

In addition, labor standards must be consistent with the capabilities of workers in the organization and the general level of society, with flexible and reasonable adjustments to reduce the monotony of wages according to labor results, and encourage increased productivity and quality. At the same time, there must be measures to reduce related costs in the labor process.

3.2.5. Strengthening the application of science and technology in the organization and implementation of the salary payment plan based on labor results at Saigon - Hanoi Commercial Joint Stock Bank SHB

To complete the plan to pay wages based on labor results, Saigon - Hanoi Commercial Joint Stock Bank (SHB) needs to promote the application of science - technology - information, automation equipment; methods, sets of indicators, criteria, models of production and business organization, workplace organization, modern and advanced salary organization in implementing the plan to pay wages based on labor results. At the same time, the application must also be consistent with the characteristics of SHB and must ensure connectivity and consistency, especially in terms of information between departments and with each other.

management levels throughout the system. In addition, Saigon - Hanoi Commercial Joint Stock Bank (SHB) can learn, refer to, and apply the latest modern management methods and scientific and technological solutions from the successes of competitors or other businesses.

3.2.6. Building an in-depth risk management system across the entire organizational system of Saigon - Hanoi Commercial Joint Stock Bank SHB

In the process of perfecting the plan for paying wages based on work results, Saigon - Hanoi Commercial Joint Stock Bank (SHB) needs to build an in-depth risk management system throughout the entire organization, operating effectively with high synchronization, stability and professionalism to ensure that the payment of wages based on work results takes place stably and effectively.

3.3. Some recommendations to improve the salary payment plan based on labor results at Saigon - Hanoi Commercial Joint Stock Bank SHB

3.3.1. Recommendations to SHB Board of Directors

At SHB, the Board of Directors is the brain that manages all activities of the Bank. Therefore, to complete the salary payment plan based on labor results at SHB, the Bank's Board of Directors needs to consider and implement:

Develop regulations on salary deduction principles; issue sanctions for cases of failure to meet labor targets, sales targets, and cases of failure to complete tasks, and to raise debt-related issues to ensure that salary payment will be most closely related to the actual work results of employees at Saigon - Hanoi Commercial Joint Stock Bank SHB.

Promote the effectiveness of labor quota work in the organization to create a basis for perfecting labor norms and paying salaries to employees based on labor results accurately and objectively, and creating motivation to promote labor, improving labor productivity for employees at SHB.

Require specialized departments to promptly develop specific standards and indicators to evaluate the effectiveness and level of work completion, and complete the establishment of norms with specific quantifiable parameters for positions receiving salaries based on work results so that salary payment for this group is most effective.

Conduct research, study, continuously update and provide legal bases such as Labor Law, Business Law; the latest Decrees, Regulations, Decisions of the State and Government on wages in general and wages based on labor results in particular to ensure compliance with the provisions of the Law and the highest legitimate rights and interests for employees as well as SHB itself.

Increase financial investment in purchasing and putting into use modern software and online information systems to ensure the best determination of employees' work performance, especially the management of work results at branches far from the Head Office (HO) ; thereby having the most accurate basis for determining contributions, workload, efficiency, productivity as well as salaries according to the work results of employees in the entire SHB system.

Train and enhance the sense of responsibility of those working in payroll because this team is the one who will directly influence the construction, supplement of regulations and salary payment, use of total salary fund as well as testing the effectiveness of salary payment plans in SHB.

Develop detailed regulations, have specific guidelines on risk management and establish reserve funds in implementing performance-based salary payments. Because the elements in this plan are always fluctuating and pose high risks to employees as well as organizations, especially businesses in the Finance - Banking sector such as SHB.

The Board of Directors also needs to develop strategies and preferential policies to ensure that wages based on work results and actual wages in general always increase faster and more than the increase in prices, the increase in the consumer price index, and inflation in the market to ensure the rights, benefits, living standards, and the ability to regenerate the labor force of employees working at SHB.

3.3.2. Recommendations to SHB Human Resources Management Board

SHB Human Resources Management Board is the unit primarily responsible for organizing human resources management and organizing salary payments to employees in SHB. Therefore, to complete the salary payment plan based on labor results at SHB Bank, the Human Resources Management Board needs to:

Strengthening the review and seeking opinions from superiors in adjusting the regulatory framework, the content of the basic framework principles on the mechanism and policies for income payment to employees in general as well as the remuneration policy according to the salary payment plan based on labor results in particular and supporting SHB's Board of Directors to ensure the effective implementation of the proposed contents and regulations.

Check, implement and seek comments for adjustments (if any) to the regulations and framework principles on organizing monthly assessment of productivity, quality and work performance of employees at SHB.

It is necessary to closely coordinate with other professional units and other related management units to complete and organize the implementation of the development of specific job goals and requirements for each employee based on their actual qualifications, job position requirements and productivity, and their actual contributions in order to develop a reasonable salary and human resource development plan, and at the same time thoroughly educate them to clearly understand and strictly implement SHB's job requirements.

Conduct surveys on working conditions and living conditions of employees to have the most reasonable plan for standards, evaluation and salary increase for employees, contributing to ensuring the best and most convenient living and working conditions for employees to maximize their abilities and qualifications, contributing to the strong development of SHB.

Complete the process of organizing and implementing salary payment based on work results, and at the same time propose plans, projects and innovation roadmaps to promptly adjust the establishment of funds and salary calculation methods based on work results to complete salary payment according to this plan at SHB.

At the same time, SHB Human Resources Management Board also needs to grasp the situation and trends of salary fluctuations in society and in the world to have the most timely proposals and amendments to the salary regulations in general as well as the salary payment plan based on labor results in particular, helping SHB quickly adapt to new changes in this issue. Because the nature of salary is a sensitive issue between employees and organizations, salary is the motivation and basis for connecting employees with the organization, helping employees to be motivated when working at the unit.

Comment


Agree Privacy Policy *