Compensation and benefits vietnam package

A compensation package that aligns with employee expectations will boost morale and foster long-term employee engagement. Good benefits include not only salary and bonuses but also high-quality facilities, allowances, and holiday gifts. But what are considered good benefits, and which ones should we propose during salary negotiations? Let's explore some options below with Faro Vietnam!

1.  Financial Compensation Schemes

Financial compensation schemes include salaries, bonuses, allowances, benefits, etc., in cash or in kind that are valuable to the employee's material well-being.

Salary: This is the compensation that employees are most interested in. During interviews, when discussing benefits, candidates will ask about salary first, then other benefits. Different positions and specific jobs will have different forms of compensation.

Currently, companies are increasingly adopting the 3P compensation policy to optimize efficiency and ensure fairness for employees. Accordingly, the 3P compensation includes:

Basic salary (P1+P2): Paid based on professional position (P1) and individual capabilities (P2). This is the fixed monthly salary that the company pays to employees.

Performance-based salary (P3): Paid based on productivity (P3). This is not a fixed salary; it changes based on the employee's performance and success.
 

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In addition, candidates should also pay attention to the difference between gross and net salary and other salary calculation methods, depending on which method the company uses.

• Bonuses: Besides salary, in the cash compensation system, there are also bonuses for achieving short-term, urgent targets or for providing suggestions that improve work efficiency, such as performance bonuses, or some companies may even reward employees with stock options.
• Allowances: Allowances can be considered compensation for employees due to difficult working and living conditions in the factory or strenuous work. Currently, most businesses have basic allowances such as: lunch allowance, parking allowance, communication and phone call allowance (for sales staff), etc. In addition, some businesses in specialized fields such as metallurgy, chemicals, etc., may have additional special allowances such as: heavy labor allowance, hazardous work allowance, etc.
• Benefits: Benefits are usually not paid directly in fixed monthly cash like salary, but are indirect compensation that the business pays to support the lives of employees. Benefits are generally divided into two main types: mandatory benefits (businesses must comply with legal regulations such as social insurance, health insurance, unemployment insurance, etc.) and voluntary benefits (depending on the company's resources and policies).

2. Benefits and Compensation

Besides material benefits, training, vacation time, and morale-boosting benefits are equally important, creating an environment where you feel happy at work and can develop yourself.

• Training: In most companies, large or small, there is a training department that provides professional knowledge and skills to support the job, allowing employees to improve their abilities, accumulate experience, and advance in their careers.
• Travel and Recreation: In addition to the vacation and holidays mandated by the government, companies also organize recreational activities and trips. This strengthens team cohesion and improves the morale of employees, relieving work stress. Team-building events, year-end parties, and social gatherings help to foster connections between departments and divisions.
• Other benefits and incentives: In large companies, they attract and retain talent with even more enhanced benefits such as: increased vacation days, supplementary insurance (increased insurance benefits), shopping and entertainment membership cards, etc.

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3. Non-financial incentives

Similar to the benefits and incentives above, non-financial incentives also focus on human resource development and morale, but completely exclude cash or monetary benefits. Instead, they aim to improve convenience and help employees perform their jobs better.

• Work Environment: In employee benefits, creating a good work environment that facilitates smooth workflow requires appropriate tools and equipment (attention to computers, seating, and supporting equipment, etc.). A well-designed workspace helps employees complete tasks faster and contributes to higher productivity. Other factors related to the work environment include: bosses, colleagues, company culture, etc. If the company has sufficient resources, it can also provide inspiring benefits such as building relaxation rooms, entertainment rooms, gyms, and free canteens for employees to use at their convenience.
• Work Equipment: Work equipment helps employees have better working conditions. The company may provide transportation such as cars or motorcycles (depending on the employee's rank), communication phones for sales staff, or protective equipment such as gloves and medical masks for outdoor work areas involving chemical exposure, etc.
• Job characteristics: These include motivating employees, assigning tasks that match their skills and qualifications, and creating opportunities for employee development and self-improvement. In addition, detailed work procedures with clear career progression paths and timely recognition of contributions are also factors that increase motivation to complete tasks.

Employee compensation is also a key consideration for job seekers because it impacts their personal lives, families, and future plans.

A suitable compensation system allows employees to improve their material and spiritual well-being through benefits. It also ensures employees receive benefits commensurate with their contributions.

Employees also rely on compensation to establish their position within the company, as each position has a different compensation package; the higher the position, the greater the benefits. This strongly influences employees' proactive and enthusiastic work ethic and their decision to stay with the company.
Faro Vietnam has compiled a list of common compensation and benefits that candidates should be aware of, along with things to keep in mind to improve your compensation and benefits package.

Faro Vietnam

• Email: service@farovietnam.com.vn

HANOI HEAD OFFICE

• Tel: + 84 24 3974 3091

HO CHI MINH CITY OFFICE

• Tel: + 84 28 3821 4654

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