In the context of business increasingly attach importance to the performance actually worked of employees, the wage based on KPI (Key Performance Indicators – indicators to measure work efficiency) has become the inevitable trend. However, many organizations are still experiencing difficulties when applying this form: the aggregate KPI data discrete calculation crafts flaws, and staff often lack confidence in the transparency of the system.
This is when the software paid by the KPI become necessary tools. This solution helps business automate the payroll process based on the results of work, completely remove errors due to manual action to ensure fairness and transparency among employees.
This article Lac Viet SureHCS will help the organizations and enterprises understand:
- Payroll software according to KPI what is, how it works?
- The difference with the tool payroll tradition?
- Most importantly, the business will receive what values when applying this model into practice.
1. Learn about payroll system according to KPI
1.1. Payroll software according to KPI what is?
KPI (Key Performance Indicator) is the index measuring the performance of employees or department, usually tied to business goals such as sales, productivity, rate of customer satisfaction or the level of completion of the work. Every business can set up system-KPI own, in accordance with the peculiarities of their activities.
From there, the software paid by the KPI is understood as the system automates the entire process of calculating salaries, bonuses and benefits based on the results of KPI fact.
This software typically includes features such as:
- Update KPI data automatically from timekeeping systems, CRM, ERP or performance reports;
- Apply the formula for calculating the salary flexibility according to each position;
- Control the approval process, to avoid manipulating or misleading data.
For example easy to understand: An employee business KPI sales reach 90% and KPI customer care reach 100%. The software will automatically calculate:
Food get = base Salary x (The number of KPI sales x 90%) + (Weighted KPI customer care x 100%)
Thanks to that, the business not only save time but also ensure fairness and transparency in pay.
1.2. Difference between software salary according to KPI and software salary traditional
Many businesses today still maintain the forms of the wage or only based on fixed formula, this leads to a number of common problems such as:
- Take more time to synthesize data from multiple sources;
- Errors due to data entry craft;
- Lack of transparency makes employees doubt the impartiality;
- Not motivate performance.
Payroll software according to KPI birth to completely overcome these limitations. Below is the comparison table, in particular:
| Criteria | Software payroll traditional | Payroll software according to KPI |
| How to calculate monthly salary | According to the formula fixed (base salary, allowances) | According to the results of performance (KPI), weighted goal |
| Level of transparency | On average, difficult to access the data source | High, all data KPI can check and compare |
| Process automation | Part, still need to enter data manually | Completely automatic updates data from other systems |
| Staff motivation | Passivity, dependence level on the reviews | Proactive, driven to complete the target KPI |
| Processing time payroll | Takes an average of 3-5 day/month | Reduced down to just a few hours with automatic data |
Through comparison, one can see payroll software according to KPI not only is the tool payroll, which is the system of performance management, comprehensive help businesses pay fair wages, encouraging productivity and optimize operating costs.
2. Why business should application paid by the KPI?
2.1. Solve the limitations in the method of calculating salary traditional
In many businesses, the payroll still be done manually or based on the Excel file. How to do this seemingly simple, but potential series of risks: data entered the wrong formula for the inconsistency between the parts, in particular, is difficult to control the transparency when the scale hr increase.
When businesses start applying paid by the KPI, these issues become more complex. KPI is usually set for each position, each specific goal; if there is no automated system, the synthesis and conversion KPI-out wage lead to deviation, delay, and even controversial between employee and department C&B.
Payroll software according to KPI helps businesses radically solve the above problems by:
- Automatic synthesis of KPI data from various sources (timesheet, CRM, performance reporting), remove the input manually.
- Standardized recipe payroll, ensure consistency, fairness between the departments.
- Increase transparency: employees can actively track the results of KPI of yourself and understand the reason earnings increase or decrease.
This shows the urgent needs of the organizations and enterprises are to find out information about payroll software according to KPI to improve efficiency of human resource management, particularly in the competitive environment, talent is getting fiercer.
2.2. Meet the trends in hrm modern – paid by performance
Paid model according to performance no longer a new concept, but only really bring value when be operated by transparent data, measuring tools, precision.
This is not just a trend, which is a step forward in thinking in hrm modern, with three outstanding value that businesses get:
- To create intrinsic motivation for employees: When wages are tied directly to the results, each individual has the motivation to strive more clearly. They understand that all efforts are recognized and converted into income-worthy.
- Optimal pension fund control personnel costs: The software allows businesses to predict salary based on KPI's average of each of the departments, to avoid exceeding the budget.
- Increase the ability to retain talent: When the system pay transparency, employees have confidence in the mechanism remuneration, help to significantly reduce the rate of voluntary leave.
As such, the deployment of the software paid by the KPI not only help business modernization process, C&B, which also contributes to building a culture of performance where all employees understand the goals, results, was rewarded fair according to actual capacity.
3. Salient features of payroll software according to KPI
3.1. Set management KPI flexible
One of the strong points of the software paid by the KPI is the ability to customize the system KPI according to each level management, peculiarities of work. Business can:
- Set KPI individually for each location, department or project.
- Allocation weighted KPI according to the priority level of your business goals.
- Link KPI with the actual results from the system task management or CRM to ensure accuracy.
For example, the sales department can be measured through sales, number of new customers; while the customer care department based on the response rate and the level of customer satisfaction. Software help automate this process, to avoid the index is set up sensory or lack of base real data.
3.2. Automatically calculate salary according to recipe KPI
The software allows businesses to set the formula for calculating the salary, flexible combination of basic salary and bonus according to performance.
For example:
Food get = basic Salary × (Total points KPI gain / 100)
This helps to process payment becomes fast, accurate, transparent, at the same time reduced to 70% of the time, payroll processing compared with the calculation manually (according to internal survey by BambooHR 2024, source: BambooHR Payroll Benchmark Report 2024).
3.3. Dashboard visual reports
Payroll software according to KPI provides dynamic reporting, analysis chart visually helps leaders easily track performance and pension fund in real time.
- Report KPI aggregated by individual departments, campaigns.
- Trend chart to help identify staff performance or need support.
- Forecasts personnel costs, the effect on investment (ROI) for each division.
The value that business get not only lies in the “payroll accurate”, but also in the ability to make decisions based on data, a core element in human resource management modern.
3.4. Integration with time and attendance system – HRM – CRM
The majority of organizations are already available system hr management (HRM) or the CRM. The integration helps to synchronize the data between the system, limiting the input duplicate to ensure the accuracy.
For example, when the employee hit sales targets in CRM, this data will update automatically to payroll software to help calculate the correct bonus in a timely manner.
This not only helps reduce the workload for parts C&B, but also shorten the cycle payroll, create a positive experience for employees.
Overall, the features of payroll software according to KPI not only support business payroll quick standard, but more importantly, help build a mechanism pay transparency, promote performance and mounted personnel.
4. Selection criteria payroll software according to KPI suitable for business
Choosing payroll software according to KPI suitable not only help businesses automate the process of complex calculations, but also ensure fair and transparent remuneration policy. Here are four important criteria that businesses should consider before investing.
4.1. The ability to customize the KPI according to the peculiarities each of the departments
Every business has the organizational structure and goals of different activities, so that the system KPI also can't “uniform” for all. The ideal software should allow administrators to customize KPI according to the department, position, rank, at the same time support change the key of flexibility when business adjusted trading strategy.
For example, With the department of business, KPI may be the sales or the proportion of key menu, while with the hr department, KPI stay focused on the rate of staff retention or recruitment time average. If the software has the ability to customize according to each group of objects, business will be easy to evaluate the performance in a way made more fair.
4.2. Security data security
Data of salaries, bonus, KPI is sensitive information, have high value. Therefore, software should ensure that security standards according to international standards such as ISO/IEC 27001 or applicable model, access subdivisions, multi-layer (multi-level access control). This helps minimize the risks of data leakage and unauthorized access.
In addition, the software should have the backup function automatic data encryption information payroll help business peace of mind about the integrity of the data even when the incident system.
4.3. The ability to integrate with systems HRM/ERP available
A payroll software according to KPI only really work when can seamless connection with other systems such as HRM, ERP, attendance, CRM or accounting software. The contact information this helps to sync data, personnel, revenue, results and KPIS, results, attendance – from that automates the payroll process without the need to enter data manually.
For example, when employees reach the KPI according to the report, CRM, data can be automatically transferred to the payroll system to update bonus respectively, shorten the processing time up to 70%. According to the survey of Vietnam Software Market Report 2024, more than 68% of businesses evaluate the possibility of integration is the key factor when choosing hr software.
4.4. Supply unit has the experience and service support after deployment
Many businesses fail when implementing payroll software just because of choosing the wrong provider – lack of experience in implementing real or not timely support after handover. A unit of prestigious need to have experience in the field of C&B and HR Tech, at the same time provide services, training, maintenance, consulting, system improvements throughout the process of use.
Business should be preferred supplier list client deployment success fact, be of good feedback about the system stability, speed, technical support. This is a decisive factor to ensure the software truly operate effective, long-lasting.
5. Solution payroll software according to KPI of Lac Viet SureHCS C&B
Software lacviet SureHCS C&B was developed as a platform salary calculator, smart, business support performance assessment – payroll – paid automatically according to KPI, in accordance with the management model, traditional and modern.
- Management KPI automatic flexible placement allows you To create and customize KPI according to each work location, department or campaign, support for multiple formula for calculating the different points (weighted according to the objective, quantitative, qualitative,...).
- Calculate salary according to recipe KPI custom: the System automatically links point KPI with formula for calculating the salary, bonus, commissions are pre-set according to the internal regulations. So, room C&B can handle thousands of lines of data in just a few minutes, reduce errors calculated to ensure transparency between the employees.
- Report KPI, salary, according to the real time: Provide intuitive control panel, can the current situation in complete KPI, payroll costs in real-time. Administrators can quickly see completion rate goal of each department, from which to make decisions, adjust business strategies in a timely manner. Data is synchronized with a time and attendance system, CRM and banking (through BankHub), ensuring seamless processes from measuring performance to salary.
- Deep integration with ecosystem HRM of Lac: Lac Viet SureHCS C&B not independent activity that integrates seamlessly with the other personnel such as Recruitment, Training, benefits, electronic Contract, SOCIAL insurance, electronic iVAN. All form an ecosystem HRM consistency, help businesses digitize the entire life cycle from recruitment, gave the price to pay, reward and retain employees.
CONVERT THE NUMBER OF PERSONNEL WITH COMPREHENSIVE LAC VIET SUREHCS
LV SureHCS is the solution in hrm comprehensive (HRM) is developed by Lac Viet from 1998, now serves more than 1,000 businesses in Vietnam with international standards such as CMMI Level 3, ISO 9001:2015 and ISO 27001:2013. Platform help of optimized every aspect from recruitment to employment, improve the experience of staff and effective management of resources.
Feature highlights:
- Candidate Pool AI + AI Resume: automatic dissection CV any format, search for suitable candidates instant, a 70% increase quality, reduce recruitment time significantly
- Timekeeping software – payroll – C&B auto: integrated benefits, overtime, insurance, export report, payslip correct for business scale up to 10,000 employees
- Experience hr – wallet reward – ranking behavior – survey periodically: internal management, honor, mounted staff in real time.
- Assessment and capacity development: KPI/OKR flexibility, feedback 360°, the proposed route train personalization according to the evaluation results
- Internal training & LMS integrated AI: learning anytime, anywhere, content management, multi-modal with personalization from AI
- Dashboard BI + AI Advisor: real-time reports, suggestions leadership decisions based on data resources.
INTEGRATED AI ACCELERATION CONVERTER OF PERSONNEL
Lac Viet has officially launched The 3 AI assistant hr deeply integrated into the LV SureHCS including LV-AI.Docs, LV‑AI.Resume and LV‑AI.Help to automate the task administration, standardized data enhanced experience personnel
- LV‑AI.Docs: automatic dissection transfer data from documents such as CCCD, windows, SOCIAL insurance, by level of digital records, standardized
- LV‑AI.Resume: analysis of CV auto, construction, candidate profile, find people with the right criteria by prompt intelligent data mining candidate pool efficiency
- LV‑AI.Help: chatbot internal support, answer questions HR 24/7 access form process quick contextual user
TYPICAL CUSTOMERS ARE DEPLOYING LV SUREHCS
- Coca-Cola Vietnam: System deployment LV SureHCS to digitize comprehensive human resource management group has standardized the data, the optimal operating HR according to international model.
- Textile company Success (TCM): Application LV SureHCS to manage hr, payroll, benefits, timekeeping and capacity profile for nearly 5,000 employees across 5 areas of activity – from textiles and fashion to real estate.
- Total company air Port, Vietnam (ACV): Choose to trust LV SureHCS to operate the system large-scale personnel with over 10,000 employees, 24 subdivisions, solved the problem of complex business of modeling state-owned companies.
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BUSINESS IS WHAT WHEN DEPLOYING SOFTWARE LAC VIET SUREHCS?
- Comprehensive solutions from A‑Z cover the entire process of HR from recruitment, profile, attendance, payroll, benefits, training, reviews, experience staff
- Highly customizable & flexible connection to suit any scale, industry, easy to connect with ERP, finance, office of chemical
- Save cost & performance enhancement help to lose 40-60% of the cost of operating personnel, retain talent, improve the work efficiency
CONTACT INFORMATION:
- Hotline: 0901 555 063
- Email: [email protected] | Website: https://www.surehcs.com/
- Office address: 23 Nguyen Thi Huynh, Phu Nhuan, ho chi minh CITY.CITY
The selection of a suitable solution not only helps automate the process of payroll – rewards, but also create a platform for cultural work based on the results, encourage staff to strive for common goals.
With Vietnam SureHCS C&B business not only owns a payroll system smart but also a comprehensive set of tools to support performance connection – salary – benefits in the same platform.
Contact Lac Viet SureHCS today to be consulting demoexperience system, payroll software according to KPI customize the goods according to each business.
