Employee remuneration - the key to talent retention

Nowadays, employee remuneration is popularly interested by a lot of employees. These policies encourage employees to work more enthusiastically and creatively. How the remuneration differs in different businesses? What do these policies mean for employees and the business? Let's find out with Viindoo about the popular remuneration regimes through the article below.

What is employee remuneration?

What is employee remuneration? This is the company's policy of total compensation for employees. The goal of these regimes is to take care of employees and their mental aspects. As a result, employees will have more inspiration to work and contribute more to the company. At the same time, the remuneration regimes greatly contribute to the development of human resources, talent acquisition, and achieving the long-term goals of the company.

employee remuneration
Employee remuneration includes not only base salary but any bonuses, commission payments, overtime pay, or other financial benefits that an employee receives from an employer.

Why does employee remuneration matter?

For businesses, building an employee remuneration regime means a lot to the company and the employees. Besides, good employee remuneration also helps businesses contribute to society.

To employees

Great employee remuneration improves employees’ lives and their mental health also. Specifically, it brings the following benefits:

  • Employees are paid in accordance with their ability and contribution to the company.
  • Great remuneration policies inspire employees to give their best.
  • Employees realize their contribution and importance to the business.
  • Great employee remuneration encourages employees to work more dynamically and creatively, thereby increasing work productivity.
What is remuneration
Great employee remuneration boosts working productivity.

To employers

When building employee remuneration, businesses can ensure high-quality and stable human resources, together with the following benefits:

  • A great remuneration policy creates favorable conditions for the company to improve operations efficiency and quality.
  • Businesses can retain existing human resources and talented employees.
  • Businesses can build an effective corporate culture.

To the society

Through remuneration policies for employees, businesses have contributed a lot to a more stable community.

  • Help society develops more.
  • Create more opportunities to for businesses to contribute to the economy and improve the value of workers' lives.

 See also: Apply Maslow's Hierarchy Of Needs in human resources management

What is included in the employee remuneration?

What does employee remuneration include? This question remains the headache of many employees. In order for businesses to grow, businesses need to satisfy employees and build the right policies. Let's find out with Viindoo about the most popular remuneration regimes for employees.

Employee remuneration by materials

In businesses, employee remuneration by materials is indispensable. Specifically, the company must ensure salary, allowances, benefits, and bonuses for employees. These are the basic levels that help ensure the mental and physical well-being of employees.


Salary is one of the employee remuneration regimes that should be given priority. According to a Monster survey in 2020 of 1,000 employees in the US, 73% of employees stated that they care most about salary. Businesses need to consider each industry to pay appropriate salaries for employees.

employee remuneration
Salary is an important factor in retaining employees

Other payments

Currently, most businesses provide allowances for employees in addition to monthly salaries. Additional allowances include lunch, phone, annual travel, or petrol. Though not too much, these allowances are still much appreciated, thereby encouraging employees to actively contribute to the business.


Unlike salary or allowance, benefits are not paid in cash. This will be the indirect money that the company supports employees. Currently, businesses provide 2 main types of benefits:

  • Mandatory Benefits: This type of benefit appears in almost all businesses, as employees are supported with Social Insurance, Health Insurance, and Unemployment insurance.
  • Voluntary benefits: Each business has different benefits based on its financial and future orientation for employees.


One of the most popular employee remunerations is bonuses, which are paid to employees when they over-perform tasks. In particular, employees can get bonuses for raising initiatives or exceeding KPIs. Especially, some companies even pay bonuses by shares.

good employee remunerationEmployees get bonuses when achieving high results

Employee remuneration in mental aspects

In addition to material policies, it is also important to ensure the morale of employees. Businesses should add entertaining activities for employees during work while focusing on training employees to improve their working skills.

Training & development

One of the mental employee remuneration regimes is the employee training types. Create a roadmap for promotion and organize training sessions. Professional training helps employees develop themselves and work more effectively. In addition, businesses also need to design programs to rotate positions and redesign jobs. Based on that, employees will stick with and devote more to the company.

Entertainment & relaxing

In addition, employees also need more time off during the year. Businesses often reward employees with days off, entertainment, or travel activities. This mode helps employees to be more engaged with the business and reduce pressure at work.

employee remunerationBusinesses need to create more time off for employees

Other benefits

Each company has different employee remuneration. In particular, large companies have plans to retain talent, therefore they have higher allowances or benefits such as travel allowances, member cards, and entertainment services. In addition, employees are also entitled to additional insurance.

Popular employee remuneration regimes

The COVID-19 pandemic has changed employees’ needs and desires, which requires businesses to adjust their welfare regimes accordingly. Let's find out some of the popular employee remuneration regimes in businesses:

  • Remote working or Hybrid working model: This is considered a popular benefit during the Covid epidemic period. Accordingly, businesses can support employees to work remotely or work flexibly between home and office.
  • Personalized benefits according to ability: Businesses can let employees choose a bonus level that is suitable for their ability. This will boost employee motivation when they can strive towards the goals and rewards they desire.
  • Paid leave: This is considered one of the most popular employee benefits. Businesses can support additional paid sick days for employees or consider a policy of reducing working hours but not deducting women's wages when they are pregnant or have small children.
  • Online health care programs and psychological counseling: Taking care of physical and mental health should also be of interest to businesses.
  • Free food and drinks for employees in the office: Businesses can serve cookies or coffee to employees in the office. This can create a closer bonding and make it easier for employees to get along with each other.
  • Investment in equipment in the workplace: Employees will feel more comfortable when fully equipped at work. At the same time, businesses also manage the productivity of employees.


After finding out what is employee remuneration, employees still have a lot of questions about benefits from businesses. To help you choose the right company, Viindoo will help you answer some fairly common questions.

  • Should I work in companies with great employee remuneration?

Employees are recommended to work in companies with great employee remuneration. This shows that the company really cares about employees’ benefits. Businesses that promote welfare policies will facilitate employees’ development. Employees can also communicate more freely and openly with leaders.

In addition, employees can work hard and strive to achieve what they feel worthy of. High incentives will motivate employees to work and show that the business is rewarding properly for what they spend, which is a good sign for employees.

good employee remunerationEmployees should be rewarded for their efforts
  • Is employee remuneration policy compulsory for businesses?

Policies and benefits for employees are crucial, and this has been stated in the law.

Policies on salary, insurance, and employee benefits are a must. Businesses cannot retain and attract good human resources without good employee remuneration. Therefore, businesses should always prioritize the development of these policies.

employee remunerationRemuneration helps businesses retain talented people

It is clear that employee remuneration plays an important part in an employee's desire to leave or stay with your company. Enterprises could start set remuneration policies in company by using HRM software. Viindoo HRM software could help enterprises view and adjust compensation policies, plan employee bonuses, and recommend pay adjustments.

Ready to experience the excellence?​

Viindoo HRM - An effective all-in-one human resource management solution.

TRY NOW - It's free!    or  Let's talk

The article has helped you understand more about employee remuneration. Businesses need to prioritize policies on allowances and benefits, thereby retaining employees and increasing work motivation. As a result, the business will grow more and increase outstanding revenue. Viindoo hopes that you will choose a company with good remuneration to advance in your work.

>>>> Useful Articles:

Employee remuneration - the key to talent retention
Viindoo Technology Joint Stock Company, Van Anh Nguyen December 3, 2022