Bringing a new, fair and transparent salary calculation method in line with modern trends. Therefore, the construction of a 3P salary system with specific steps is a topic of special interest to businesses.
The 3P salary system is a new, scientific method of salary calculation based on practical bases that brings fairness and transparency in the matter of salary and bonus, helping employees receive a salary commensurate with their efforts. their ability, helping enterprises to properly assess their capacity and have a good regime with the right people, thereby encouraging, promoting their abilities, retaining good employees... Therefore, currently, 3P salary is the subject of receiving Lots of business attention.
However, knowing what it is and its benefits is only a necessary condition. In order to successfully build a 3P salary system for businesses, it is necessary to have all the necessary factors and need a process of building a 3P salary system with a sequence of steps to be performed in sequence with a specific plan. . So, what are the steps to build a 3P salary system? Let's learn more with OOS Software through the article below:
Step 1: Design organizational structure, functions and job description.
- The 3P salary system is built based on 3 factors, Position, Person and Performance. Therefore, we must grasp and implement in detail and clearly all three factors above to be able to successfully put into practice the 3P salary system, to do this, businesses must Enterprise infrastructure system must be correctly built, which are the following factors:
- Vision, mission, core values of the business
- Company organizational chart, organizational chart of departments
- Full and detailed regulations on functions and duties of all departments
- Table of job descriptions of each position accordingly.
Step 2: Build a competency framework and assess individual capacity.
- After doing well in step 1 with a good infrastructure system, then start building a capacity framework and criteria for assessing individual and organizational capacity based on the functions, tasks and goals of the department. Committees and individuals need to achieve that to support the construction of accurate KPIs.
- To develop a competency framework and assess individual competencies, the following steps should be taken:
- Build capacity dictionary
- Building competency frameworks for positions
- Assess individual capacity according to the position's competency framework
- Synthesize evaluation results, as input for training plans, HR strategies and 3P's salary.
- The results of the individual competency assessment, or % meeting the position's competency requirements, are used to determine the employee's salary level in the salary bracket, depending on the salary regulations.
Step 3: Build a KPI system and evaluate individual work results.
- Based on the competency framework and functions of the department, individuals are attached to the common goals of the organization to evaluate and set KPIs requirements for employees, and support to calculate KPIs accurately. To do this, businesses need to do the following small steps:
- Strategic map design
- Building company BSC
- Allocate and build departmental KPIs
- Allocate and build KPIs for key positions
- Develop a regulation for evaluating results
Step 4: Build a framework system, salary levels and salary regulations.
- After standardizing the above three factors, in order to build a 3P salary system, enterprises will go to the next step, which is to build a salary frame system, salary levels and salary regulations. This includes the following tasks:
- Develop a set of criteria for assessing work value. Job evaluation criteria can be developed according to HAY or Mercer.
- Evaluate the value of work
- Design framework system, salary level
- Outline salary regulations
Step 5: Apply and correct.
- With any plan, it takes time to test and adjust to verify the suitability when applied in practice and to revise the necessary parts to meet the maximum requirements of the organization.
- This application and modification will include the following steps:
- Salary grading for individuals
- Make an illustrative spreadsheet for the use of salary funds and salary regulations
- Completing salary regulations
- Make a plan to switch to the new system (if necessary)
-The above systems need to be agreed upon and promulgated after being built. After putting the new salary system into trial operation, the Human Resources Department must calculate the employee's salary according to this regulation and system, and calculate the first month's salary after applying the regulations.
The above are the basic steps to set up a 3P salary system for businesses that have been shared from the opinions of experts, hopefully this will be a useful document in the process of building a 3P salary system for businesses. Karma. Please share with us your feelings and knowledge on this issue by liking, sharing and leaving a comment below this article.
