Salary 3P what is? How to calculate salary according to the system of wage 3P

1. The wage system 3P what is?

The wage system 3P is the wage system is constructed for the structure of the personal income reflects the three elements P1: Position – job position; P2: Person – personal power and P3: Performance – work results.

P1: Pay for Position – Paid salaries by location

Based on the job description, the same labour laws; businesses will pay P1 corresponding to each location. Therefore, the manager must assess the value of work in each position titles; at the same time learn about paid general of the enterprises of the same field from which to establish the regulation of wages clear; suitable for workers.

Businesses normally set rules paid by the quota – tier wage; specifically based on the criteria:

• About the mental effort and physical: the rating is based on capacity; frequency and level of burden of work.
• Thinking ability, decision-making and the level of creativity: Assessment based on analytical ability; perform and handle the work arising in the process of work.
• Consequences of errors in the work: Assessment of the consequences the level of errors for the system DN; customer and how to fix it. These factors can be measured through the number of financial harm; tools and equipment. However, when the review of this criterion, we only consider the flaws are typical in every position specific job.
• Work environment: Measurement based on the level of risk; toxic or influence from the outside at each work location.

After you have identified the criteria for this review we will take out stairs transcripts regulations specific to each of the criteria and performance evaluation; integrated with each position, job title.

Note: can be based on the start time of work to the construction of the salary in each of the salary and there should be route increases wage, wages consistent every year.

P2: Pay for Person – Pay by personal power

The criteria identified, including:

1. Professional competence: this is the required knowledge on professional applications, with each job titles in specific business

2. Core competencies: is the best possibilities need to be in charge of this position.

3. Capacity according to role: is the likely minimum required of each job position.

Combined with the competitive conditions of the market; we will have the adjustment in accordance with the actual capacity that the labor was devoted. In addition, also need to have the allowances in salary as: allowance seniority; allowance superior capacity;...

P3: Pay for Performance – Pay according to work performance

This method will be charged based on the work efficiency of the labor process: The goal of work -> evaluate the effectiveness of the work (completed or not completed) -> Award -> personal development -> development organization.

The form of pay including:

• Personal: bonuses, commissions, deductions, wage according to product, increase in wages.
• Organization (group, department): reward achievement group, department, or to share the benefits gained.
• All business: bonus shares, right to buy the stock or share of the profits the business.

Depending on the needs and practical activities in every business that we apply the mechanism to pay different salaries. Current pay method 3P is applied in many businesses.

2. The wage system 3P will suit any business?

If pay method traditional attention to qualifications or seniority; not distinguish implementation capacities and contributions of each individual, then how to calculate income on salary 3P will create fairness internal. This system will also exclude less elements sentiment; at the same time also create motivation for the employee to work effectively to get higher income.

However, in fact, not business would also apply the wage system 3P are as successful as expected; even feeling unsettled.

For company management system professional:

3P would be pretty good tool. Managers will evaluate the results of work of employees based on the data you have measured.

For new business established:

3P will be very useful for the process of recruitment, staffing.

For big business, for long life:

the application of 3P can take business into “danger”. Because so many workers; managers are rate stable income and gradually increase over each year. Salary DN paid compared to the average market will typically be higher than to retain talent. When applying the wage system 3P, then their income will be turned upside down. Increase decrease in income will impact job performance, stability personnel.

3. How to apply wage mechanism 3P into business success?

One of the important elements of the system of wage 3P is the rating system achievement; to perform the assessment achievement objectively; business casual done through the following steps:

• Set goals of the company.
• Allocate and link the goal: allocate and link target at the parts; then allocate and link target down to the individual. The end of the process this will result in plant goals business as described in the drawing below.
• Set the target; only the number of reviews associated with each objective; it is accompanied by the measurement system to ensure the index is correct.
• Track, monitor their implementation.
• Evaluation of the results complete the objective.

LV SureHCS C&B is software that supports business process automation salary calculator, track benefits, to ensure accuracy and transparency in pay income for workers. Set the wages according to each business, including base salary, overtime, allowances, 3P, bonus, deduction,... ensure compliance with the privacy policy of the enterprise.

Paid to fit and satisfy the expectations of employees, but not to increase the cost and promote the development is a problem is not simple. So pay system according to the model 3P must be applied right place; at the right time and in the right context. Not only that; leaders must also pay very close attention to communication in the company-wide to on under the same understanding; empathy and support company.

By TopHR