As a hot topic with special attention from today's human resources industry, 3P salary is a new, scientific method of calculating salary, bringing fairness and transparency with a salary that is properly evaluated. Staff. Help promote business development, effectively retain talent.

So, what is 3P salary? How does it benefit the business? Let's learn together with CoffeeHR and give the answer to the above problem with the detailed article below.

1) What is 3P salary?
The 3P salary method is a method of paying employees based on 3 factors:

• By Position – Job position (P1)
• According to Person – Personal Competence (P2)
• According to Performance – Work results (P3)
  These three factors are explained in detail as follows:
• P1 (Pay for Position)- position: It means paying salary based on the position that the employee takes, people with higher positions, taking on many job responsibilities with higher capacity requirements will be paid higher wages and vice versa.
• P2 (Pay for Person): Pay for the capacity of the person holding the job position.
• P3 (Pay for Performance): Pay for the results achieved by the person holding the job position.
  From here, one thing can be clearly seen, the 3P salary method focuses on the ability and value that employees bring to the organization, not one-sided and somewhat bureaucratic like the traditional salary calculation method in many agencies. , organizations due to too much emphasis on qualifications or seniority.

2) Benefits of enterprises when applying salary according to 3P

Above are the basic knowledge about the 3P payment method. So, what benefits does the application of 3P salary bring to businesses? Let's find out more with the article below.

a) Ensure internal fairness
The 3P salary method helps to ensure internal fairness because employees with better work results will receive a salary that is commensurate with their dedication – good work means high wages and and vice versa.
b) Attract good employees
A good employee will always have the desire to be recognized, recognized by the organization for their dedication according to their capacity and work results. The application of 3P salary calculation perfectly meets that need, therefore, the application of this salary mechanism will help businesses attract and closely connect with talents.

c) Creating motivation for individuals to develop according to the organization's competency framework, thereby promoting the development of enterprises
The application of 3P salary payment has been and is a new way of doing things, bringing high efficiency to businesses in salary calculation in particular and human resource management in general, because it helps to make employee salary payment transparent. , more clearly and fairly, helping employees be motivated to maximize their own capacity, dedicating to bring values and common benefits to the organization.

This is to create a strong internal force to promote the development of that organization. Therefore, this is the method of payment that is highly appreciated by experts and is also a trend towards the future.