Knowing the benefits of the 3P salary system, many businesses have begun to build, many even hire foreign experts. However, among them, there are very few businesses that have been successful. So, what is the reason for failure? Understanding the current situation, the causes of failure to find the right solutions is the best way to succeed.
Although it brings many benefits to enterprises in assessing the right people, with the right results, to have a reasonable, fair, and transparent salary and bonus regime, helping to promote the development of each employee in the enterprise, thereby bringing internal resources, helping businesses to make steady progress in the future. However, not all businesses have successfully applied the 3P salary system. So, what is the mistake? What led to these failures? Let's find out through the article below.
1) Unknown status and improvement goals
Many enterprises, when embarking on the implementation of 3P salary, encountered controversy and vehement opposition due to the inconsistency between many departments, leading to unsuccessful improvement of the salary system many times. This is the situation that has happened in many Vietnamese enterprises.
So, what is this mistake? What is the root cause of this problem?
That is because the enterprise has overlooked or ignored the survey of the current status of salary payment, inadequacies and backlogs in the enterprise, disagreements, conflicts and wishes and aspirations from the parties (people and employees). labor and employment); levels (managers and employees); different sides (department/department. This leads to a one-sided view from some departments and individuals, without listening and understanding to fully identify. Since then, orientations cannot be given. and defined improvement goals, there is no consensus.
Advice from an expert perspective: To avoid conflicts, disagreements and objections from members and departments in the enterprise, before making improvements, it is necessary to have surveys, sharing talks. frank sharing among parties and levels within the enterprise to come to a final policy for common development goals with the unanimous consensus of everyone.
2) Too focused on academics
Each method, when given, is based on logic to approach, when applied to each business to have success and high practicality, it needs to be based on the actual situation and characteristics of each industry to make make precise adjustments, close to reality, in order to ensure fairness, transparency and satisfy the needs of internal parties in the enterprise, avoiding the case of overemphasizing academics, applying a machines, rigid, do not meet the initial expectations of enterprises and employees when applying 3P wages.
Advice: Academics are built from logic, inevitably there are unreasonable points when applied in practice due to many differences in specific industry and ideology... Therefore, flexibility is needed when applying Putting it into practice, sticking to the specific goals and realities of the business for implementation will give better results.
3) Uncommitted and determined to get to the bottom of the problem
Salary improvement is a sensitive issue, it touches the interests of all employees in the enterprise. Therefore, the improvement team must be committed and determined to follow through to the bottom of the problem, until the intended goal is achieved.
Building and implementing a 3P salary system requires the implementer to have a thorough and in-depth understanding of the system, methods and techniques of implementation, in which it is especially important to evaluate the capacity or achievements, assessment levels, and milestones from which to set out accurate targets, ensuring fairness and focus.
The executor must clearly understand that this is a difficult and complex problem and no matter how difficult it is at any stage, they must try to find a solution and go to the end of the project, the implementation of the new 3P salary system be successful.
Advice: Enterprises need to choose from the very beginning the executors who have knowledge and understanding of the 3P salary method and they must have the qualities of perseverance, determination, not afraid of difficulties, and high determination to come to the end. the end of the project.
4) expect too much of improvement
The application of 3P salary is essentially to properly evaluate and pay salary according to the dedication and work results, thereby promoting the spirit of working more effectively, not just changing and applying the salary policy. 3P is to increase labor productivity, because in order to increase labor productivity, besides salary, there are many influencing factors such as supporting technology, labor discipline, working conditions...
Advice: Leaders should not set expectations too high, leading to too much pressure on middle management, making them avoid, dare not propose and implement drastic improvements due to fear of failure. Fear of taking on too much responsibility...
5. Afraid of collision, indecisive
There is one thing that exists and is ingrained in the minds of many Vietnamese people, including business leaders, which is the mentality of being afraid of collisions and lack of assertiveness. Because the application of salary directly affects the interests of all members of the company, it is necessary to have a presence to solve the problem in cases of disagreements and disagreements. However, many leaders dodged, ignored, causing unresolved problems leading to the implementation and implementation of the salary improvement policy stalled, lasted too long and went into oblivion.
Advice: Implementing and developing 3P salary policy is a sensitive issue, touching the interests of everyone, therefore, it is necessary to have drastic and close attention from the beginning to the end of the leaders, especially They are the highest ranking people in the company. Therefore, before implementing this issue, there needs to be unity, determination and close follow-up from the top management to all employees.
Above are the situations, difficulties and common inadequacies, mistakes leading to the failure of applying 3P salary in each business, which have been carefully analyzed with advice from experts. Hopefully, this will be a useful document for leaders in the process of reforming salary policy for their businesses.