Along with the development of society, employee welfare has become a "survival" problem that businesses must solve if they want to preserve their talent pool. Changes in human resource management trends require businesses to build professional remuneration regimes that "touch" the needs of employees. To help human resource managers properly and fully understand the welfare regime, Faro Vietnam provides a process for building a welfare regime for qualified employees and a welfare policy sample for reference in the following article.
1. What is employee benefits?
Employee benefits are compensation policies in addition to salaries and bonuses. The purpose of the welfare regime is to provide the necessary facilities to ensure comfort and convenience for employees, thereby encouraging employee morale and increasing productivity. Welfare policies can be financial incentives such as insurance, subsidies or non-financial incentives related to the health and safety of employees.
Steps to Design a Solid Employee Benefits Strategy
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2. Welfare regimes for employees in the enterprise
2.1 Mandatory benefits
Compulsory welfare regimes are legitimate rights of employees that are protected by law and specifically regulated in the Labor Code. Accordingly, businesses must meet minimum benefits for employees, including:
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Sickness allowance
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Maternity
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Retire
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Work accident or occupational disease
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Death
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Types of insurance: Social insurance, health insurance, unemployment insurance
2.2 Voluntary benefits
In addition, businesses can deploy voluntary welfare regimes depending on the ability and compatibility with employee needs. Voluntary benefits are very diverse and are implemented in many different forms, for example:
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Travel, vacation, team building trips
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Professional skills training programs
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Regular health check-ups
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Types of benefits: Overtime allowance, Holiday allowance, Lunch allowance, Telephone allowance, Travel allowance, Accommodation allowance
How to Design an Attractive Employee Benefits Package
3. Process of building employee benefits from A to Z
Step 1. Survey & assess employee needs
If you want to build an effective corporate welfare regime that meets the needs of your employees, you first need to know what your employees need, what problems they encounter and what solutions they want. .
Employee surveys will help businesses find and evaluate the urgency of the needs that exist in the human resources team. You can use a variety of survey forms such as questionnaires, interviews, groups, and tracking employee behavior.
Step 2. Determine goals
Once you have identified your employees' needs, you need to develop them into goals for your benefits policy. These goals should help the business solve employee problems and meet their needs.
For example, if the employee's problem is not having a work-life balance, then the goal of the welfare regime will be: to improve the mental health of employees, helping them feel comfortable while working. work.
Step 3. Plan your budget
The next step is to make a specific plan for employee benefits. The factor that needs attention here is the cost that businesses will spend to provide benefits to employees. Expenditures need to be carefully calculated and considered to both meet the needs of employees and fit the allowable capacity of the business.
Step 4. Deploy application & internal communication about benefits
After completing the welfare policy plan, the next step is to implement it by notifying all employees. Enterprises need to provide full information about the welfare regime, including conditions for receiving benefits, subjects of application, and implementation methods to ensure employees clearly understand their benefits.
In addition, businesses also need to widely communicate the policy to all employees and receive comments and modifications if necessary. This will help the policy receive more attention and support from workers, and the image of the business will also be enhanced.
Step 5. Evaluate effectiveness
To know whether the benefit policy meets the organization's goals and is suitable for employees, you need to monitor and evaluate the effectiveness of the policy. Indicators that businesses can use to measure effectiveness include: employee satisfaction level, labor productivity, engagement index,...
4. The latest trend of building remuneration policies for employees today
Social changes in the 4.0 period have caused workers' needs in both life and work to shift significantly. A survey conducted by McKinsey & Company found that:
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51% of workers surveyed want to achieve a balance between life and work
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49% of people appreciate a flexible working environment
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56% want financial support policies
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47% are concerned about ensuring mental health when working
Therefore, building a welfare regime for employees is not a race for quantity to fill with subsidies or impractical policies. Instead, the welfare problem in the new era focuses on quality - specifically, personalizing the employee experience with flexible compensation policies.
CONTACT FARO VIETNAM today for hr solution
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Faro Vietnam
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Email: service.vn@farorecruitment.com
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