2. Salary Operation: what is the value behind?
Basic needs of labor and fundamentals of company
Payroll management is one of the deciding drivers of business
success; or it is to say salary materializes the relation between
employers and employees. Therefore, setting up a rigid salary
structure, standardizing payroll processes and procedures are
among top priorities of HR professionals and business leaders.
Payroll management includes a wide spectrum of operation
services as of consolidating salary policies, employee incentive
schemes; calculating compensation, insurances, personal income
tax; reporting new hires and/or termination, statutory summision,
keeping record and managing all data related to salary and
employee information… these are fundamental operation services
of any business to carter to the most basic needs of labors. Besides,
salary or payroll management is company’s responsibility to comply
with legal requirements of respecting authorities.
In short, payroll management comprises 2 facets: formulation
of strategic framework (policies, processes, procedures…) and
execution of monthly operation services (salary, insurance, personal
income tax, reporting…)
Business management tool
Looking from the perspective of a business operator, salary
management is somewhat a kind of business management as it
has direct effect on labor force component of business. In most
foreign-invested or multinational corporations where systems,
processes and procedures are regulated by and complied with that
of the headquarters, concerns of middle management concentrate
on questions as of how to deliver smooth operation services, how
to comply with local legal practices, how to integrate with regional
system… And also in the perpective of salary operation,, it needs
to meet 4 key requirements of payroll management which are
accuracy, timeliness, confidentiality and continuity.
Looking into the scenario of a representative office, it has to perform
diversified management tasks from administration to business
development. The cons of a representative office is sometimes it
does not have an adequate workforce to support and might run
into of troublesome in administration procedures like payroll,
insurance, tax, laws & regulations… should these matters are not
well managed, the operation performance will not be produced as
planned. One more concern of representative office is how to ensure
that the operation is in accordance with the local changing laws &
regulations given the changing business environment.
3. Salary Operation: what is the value behind?
Representative office opts in partnership with a third party to handle all
payment management to relieve their managers from coping with daily
headaches of managing staff responsibility, ability, training, morality,
commitment, loyalty… and to avoid confidential information might be
leaked to any third parties, leading to severe consequences on both
internal and external level.
Strategic planning intelligence
At large scaled and multinational companies, every number counts.
Annual salary budget, employee average salary, fluctuating salary
ranges, turnover rate, satisfaction index… all will be valuable inputs of
ERP system serving the strategic planning and alignment process of the
headquarters and its subsidiaries across regions.
Concerns of these companies are how to ensure that the data and
intelligence outputs from the local country where they operate can be
consolidated and integrated to the central ERP systems as each country
has its own legal requirements and practices.
The assigned local payroll management company should tailor its delivery
system to ensure the payroll conduct is meeting local requirements
while integrated into the central ERP or other management system.
And it requires the payroll company understand deeply the expertise
practices and high investment in the technology infrastructures.
In final words, salary (payroll) management is an indispensible
management tool business should mind and seek for better processes
and procedures or a trusted partner to well manage.
Below depicts some key aspects to audit and qualify a competent
outsourcing partner for your payroll management:
• Consistent and consolidated operation processes and procedures
• Expertise and know-how of best management practices
• Deep insights of the industry practices the business is in and its
unique operation requirements
• Strong knowledge of local regulation and ability to consolidate and
integrate local processes and procedures to create outputs that
can fit the global system.
• Advanced technology infrastructure
4. NhanViet Management Group (NVM Group) is a leading HR management solution provider in Vietnam and Indochina,
delivering HR excellence to optimize HR capital and investments of companies, both local and international since 2003.
We operate on the philosophy “Integral HR Business Partner” that is we combine the local insights with international
standard to integrate into and align with clients’ businesses. For achieving such vision, we have been developing our own
HR Management Solutions through the process of RESEARCH – PERFORMANCE – INTEGRATION.
Our solutions and products are delivered by expertise of consultants and advanced technology platforms, including:
-
HR Management Solutions
HR Insights & Research
Payroll Management Solutions
HR Compliance and Legislative Services
NVM Group - Head Office:
Unit 2 – 4, Level 5, Annex Building, Park Royal Saigon
309B – 311 Nguyen Van Troi St., Tan Binh Dist., HCMC, Vietnam
Tel: +848 3847 9364 | Fax: +848 3847 9365
NVM Group - Representative Office in Ha Noi:
Suite 1034, Floor 10, Pacific Palace Building
83B Ly Thuong Kiet St., Hoan Kiem Dist., Ha Noi, Vietnam
Tel: +844 3946 1049 | Fax: +844 3946 1025
Hotline: +84 907 772 822
contact@NVMgroup.com | www.NVMgroup.com
