3 ways to manage employee salaries and optimize effective processes

Item, employee salary management requires meticulousness, detail and high accuracy. Enterprises need to optimize the automatic payroll management process to ensure that errors are minimized. The following article, Viindoo will help you update more knowledge about employee salary management and effective salary management methods. See now!

1. The role of payroll management

Employee salary management is an important and complex stage in the human resource management of every business. This operation requires meticulousness and accuracy in calculation with a series of activities such as exporting timekeeping data, calculating salary according to the enterprise's pre-set formula and adding and subtracting allowances, insurance, etc. bonus/penalty of personnel in the company.

Employee salary management

Employee salary management plays an important role in human resource management

When implementing effective payroll management in enterprises, it will bring benefits such as:

  • Attract and retain talent
  • Ensure the rights of employees through policies, remuneration, benefits...
  • Stabilize human resources, effectively manage corporate finance, serve as a premise for strong development.
  • Boost employee productivity.

Therefore, businesses should focus on this work to ensure the construction of a methodical employee salary management process, limiting errors. Because if employees feel that the salary received is not right with their ability and qualifications, they will show an uncooperative attitude, reduce performance and even leave the company.

>>>> Read More Articles About: 13th month salary ? 

2. 3 popular ways to manage employee wages

2.1 Manual payroll management

This is a manual method of salary management, but is still applied by many companies, businesses and organizations today. Manual payroll management is suitable for small businesses, with few employees.

Manual payroll management

Manual payroll management


  • Saving costs with internal human resources for businesses;

  • More secure feeling in information security when assigning work to internal staff instead of outsourcing.


  • The trouble with procedures and paperwork;

  • Taking a lot of time and effort;

  • Difficulties in calculating salary, making tax reports, social insurance, and timely taxes payment;

  • Building a specialized employee or team for payroll management.

2.2 Outsourcing

Instead of managing employee salaries themselves, some businesses choose to outsource services. This method is also considered effective when it brings many benefits to businesses. However, companies and organizations should still be "wary" with this method.

Payroll management by outsourcing

Payroll management by outsourcing


  • Save a lot of time when managing payroll issues;

  • Have time to focus on other important tasks.


  • High cost;

  • Difficulty in finding a reputable unit to entrust the responsibility;

  • Financial management problems arise when outsourcing;

  • High accuracy and absolute security cannot be guaranteed.

>>>> See More: The latest form of salary increase decision for employees [2023]

2.3 Using software to manage payroll

Using payroll management software today is chosen by many businesses. With this management method, businesses easily calculate personnel salaries and much faster. All operations and processes are automated. In addition, the software also allows businesses to calculate gross salary, deduct insurance, tax and control and manage salary data of each employee.​

The method of using the employee payroll management software

Payroll management using software


  • The advantages and disadvantages of neutralization of the two methods above;

  • More cost-effective than outsourcing;

  • Manual errors minimum with the automation system;

  • Saving time with automatic salary calculation.


  • Internet dependant;

  • Data information may be affected if the software does not have a backup or synchronization function.

3. Employee salary management process in the enterprise

Step 1: Set up salary calculation rules

First, the enterprise needs to establish a document that stipulates how to calculate salary and how to pay wages to employees in accordance with legal regulations. The issued document needs to be communicated internally clearly and transparently. Thereby, the human resources department uses this regulation as a basis for calculating monthly salary for employees in the enterprise.

Note: Enterprises need to regularly update the provisions of the labor law when developing a set of salary regulations. At the same time, the company also needs to base on the operating situation of the business to make adjustments and improvements accordingly.

Step 2: Build a salary scale for employees

Building a salary scale (including salary grade, salary grade, and salary group) is a mandatory task to serve as a basis for paying employees' salaries, ensuring fairness and transparency. At the same time, the salary scale is built based on factors such as title, position, capacity, results .., which will be the reference system for employees to see the actual income compared to their capacity, effort spent. Thereby, employees are motivated to strive and achieve the desired salary.

Note: Businesses need to understand the regulations on regional minimum wages when setting up a salary scale and consult with the union.

Step 3: Record and manage attendance

Timekeeping management is tracking and recording actual working time data of personnel. This will be the basis for businesses to calculate employee salaries. In today's 4.0 era, there are many forms of employee attendance that are suitable for the needs and nature of the business such as fingerprint scanning, Face ID, GPS positioning. For details on timekeeping methods, you can read the article "7 most popular employee timekeeping methods in 2023".

Note: In addition to time and attendance management, the human resources department needs to record vacation days, unpaid leave or timekeeping, work online to calculate accurate wages and ensure benefits for employees.

Step 4: Calculate salary

To perform salary calculation, the human resources department needs to collect all information and data constituting salary according to the regulations that the enterprise has issued. For example: Number of working days, salary coefficient, salary level, KPI targets, benefits...

Because each business has a different way of calculating salary depending on the payroll management system. Therefore, HR should pay attention to ensure full compliance with salary calculation regulations and on required deadlines.

Step 5: Pay employees' salaries

The next step in the payroll management process is payroll. The human resources department makes payments on time and in accordance with the salary payment method prescribed by the company.

Note: There are many forms of salary payment, and businesses can choose the optimal form as well as the most suitable for the specific operating characteristics of the company such as cash, transfer, salary authorization to the bank...

Step 6: Insurance payment and tax finalization

The final step in the payroll management process is to calculate PIT and pay insurance for employees. This is a mandatory obligation of enterprises and should be performed seriously and on time in accordance with the law.

4. Optimize the effective salary management process with Viindoo Payroll

Viindoo Payroll is an exclusive application developed by Viindoo Technology Joint Stock Company. The software effectively supports businesses in automatically gathering data of salary calculation factors, helping to calculate personnel salaries accurately, quickly, scientifically and save time.

Viindoo Payroll - Automated Salary Calculation

Viindoo Payroll - Automated Salary Calculation

Payroll application - Viindoo Payroll has many outstanding advantages such as:

  • Automatic salary calculation: Aggregate data of working hours, overtime, late hours, number of days of leave, absence, performance bonus, commission bonus from other modules. Set up a flexible and diverse salary structure according to each type of business.
  • Uniform time of salary payment: Automatically calculate salary quickly and accurately, ensuring the time of salary payment is uniform.
  • Create a transparent salary policy: Decentralize security and automatically update in each employee's profile so that employees can see details of salary, bonus and allowance...
  • Multi-dimensional analysis reporting system: Real-time multi-dimensional reporting and analysis helps leaders understand the fluctuation of salary costs for each individual.

Ready to experience the excellence?

Automatically calculate salary and eliminate manual work with Viindoo Payroll. Flexible salary structures for every business needs. Pricing plans start at just $ month. 

Sign up for a 15-day free trial now.

TRY NOW     or  Contact us

5. Some frequently asked questions about salary management

5.1 Is there a penalty for late payment of wages?

If the employer or company pays the salary 15 days or more late (if, for objective reasons, the employer has tried all measures to remedy it, but cannot pay the salary on time, the maximum period is 30 days). days), the employer must compensate a sum of money.

Businesses lose employees and reputation in the labor market as salary miscalculation consequences

Late calculation of salary, the enterprise must compensate the employee a sum of money

That amount is at least equal to the interest of the deferred amount. Interest calculated at the one-month term deposit interest rate, announced by the bank where the business owner opens a salary account for employees, announced at the time of salary payment.

5.2 What are the consequences of calculating wrong employee salary?

Employee miscalculation not only causes disputes between employees and employers, but can also involve the law if the business is sued. Wrong salary calculation has great consequences, not only causing enterprises to lose employees but also reducing the reputation of enterprises in the labor market.

The above article has provided all the information about employee salary management and instructions on how to calculate salary effectively. Hope the above sharing will help your business solve the problem of salary management. If you need more advice on Viindoo's salary management solution, please contact hotline 02257309838 for quick support.

3 ways to manage employee salaries and optimize effective processes
Viindoo Technology Joint Stock Company, Danny Ha 8 November, 2022

Sign in to leave a comment

The best stock management software for businesses 2022