How Pay Transparency Help Retain Talents?
According to the results of the Total Remuneration Survey (TRS) held by Talentnet on October 2022, pay transparency is becoming more popular among employees. For that reason, it is necessary for Vietnamese businesses to maintain an accurate, transparent, and stable payroll process.
69% of employees value pay transparency
Compensation is always an important pillar in employee "financial health", so it is understandable why employees increase their interest in pay transparency. In the 2022 Talentnet Total Remuneration Survey Report, Mercer – Talentnet's strategic partner said that 69% of employees value pay transparency. In contrast, businesses rarely mention this matter.
Mr. Jack Nguyễn, Deputy CEO of Talentnet commented: “Since pay transparency salary transparency is more important to employees than ever, businesses must be more careful not to make mistakes in the payroll process. Because mistakes in compensation are very sensitive, they can cause the company to lose trust in employees, causing internal disunity. More seriously, businesses may face legal sanctions.”
Salary transparency: It’s neither easy nor impossible!
According to the 2022 Talentnet-Mercer Total Remuneration Survey Announcement, the right perception about compensation can help increase employee engagement by 5 times compared to a competitive salary. Understanding this idea, businesses should consider making a good investment in a methodical ad professional payroll system.
However, according to Mr. Jack Nguyễn, businesses also have their difficulties, which can be payroll processing companies shortage or a big investment in a comprehensive payroll system.
The first difficulty is the huge amount of work. Not only working on the payroll process, but HR also has to keep the labor records; process manual data, comply with and pay labor tax, data security, fraud prevention, etc. This massive workload has become a conundrum for businesses of all sizes.
For SMEs, it is difficult for them to make an immediate investment in finance, technology, and manpower since they have a limited number of employees and financial resources. Large companies, despite having the financial advantage, tend to put more time and effort into developing the company's business strategy than building and maintaining a payroll system. The good news for leaders and HR, they can consider outsourcing payroll services as the optimal solution for this problem.
The highlight of the service is the modern system, customized according to business needs, ensuring accurate, timely, and transparent payroll processes, as well as supporting businesses in responding to questions and updating about salary, insurance, labor laws, and legal regulations.
Mr. Jack Nguyễn believes that outsourcing payroll will bring positive changes to HR: “Once the workload is reduced, the HR can focus on business as well as investing more in building professional skills. HR now can focus on pursuing business sustainable development goals and their employees still be paid on time, fully and transparently, contribute to strengthening employee satisfaction, thereby retaining talent.”
Source: Nhịp Cầu Đầu Tư