The best KPI payroll software & how to use it correctly

Businesses can easily adjust the salary structure as required is an effective support tool for businesses in managing employees' salaries. Learn more about the benefits of KPI-based payroll software in the article belowVindoo Please!

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How to calculate salary according to KPI for employees

In the system salary 3P Effective salary calculation is usually based on three important factors: Job location, Personal capacity and KPI - Work results. Specifically:

• Job position (P1): This is the basis for determining the salary based on the value of the job and comparing it with the market salary and the enterprise's personnel plan.
• Personal capacity (P2): Determine the salary of each individual based on their capacity and qualifications.
• KPI or Performance (P3): Is the basis for calculating salary based on work results or performance.

So, the final salary of a salesperson will be calculated based on the following formula:
Final salary = P1 + P2 + P3

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The most popular KPI salary calculation model today

Below is a sample salary calculation according to popular KPI today that businesses can refer to:

Specifcally:

• Fixed salary is the amount determined based on the position, job title and working capacity of each employee. The fixed salary may vary depending on the position and capacity of the employee.
• Variable salary (KPI salary) is calculated by multiplying the results of an employee's KPI evaluation by their fixed salary. Variable salary will increase if employees achieve high KPIs and fixed salary is also high.
• The total salary received by an employee is the sum of the fixed salary and the variable salary. This is the total amount the employee is paid under this structure.

Benefits of using businesses using KPI Payroll Software

The use of automation technology to replace the traditional manual salary calculation brings many important benefits to businesses in Vietnam. Specifically:

• Operational cost savings:
• • The operating costs of the business include both implicit and explicit costs. These potential costs include unnecessary meetings, inefficient use of resources, and even underpayment or lack of control over compensation processing.
  • According to a study by the Cognizant Corporation, only 25% to 40% of operations in many organizations are automated. Employees often have to spend up to 22% of their work time on repetitive tasks. This creates unnecessary costs, such as manual aggregation and generation of payslips. Using payroll management software reduces the time spent on repetitive tasks and optimizes the operating costs of the business.
• Save time for the C&B department: For small companies, calculating employee salaries may not cause too much trouble. However, for medium and large businesses, manually calculating payroll or using an Excel spreadsheet can take a lot of time. Therefore, automating payroll through software will help businesses save time for the C&B department.
• Reduce the risk of errors in the payroll process: Using software to update and calculate payslips and payroll helps create transparency and accuracy in the payroll process.
• Increase employee's initiative in personal salary management: Managing two-way interaction in the corporate environment is a popular HR management trend. Payroll management software provides employees with support tools to easily search, look up and complain about salary-related information proactively, create satisfaction and maintain long-term staff. for Business.

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Vindoo Payroll - Automated KPI payroll software

Standardize salary calculation rules according to KPI

Salary software Viindoo Payroll uses a salary rule based on common salaries, bonuses and allowances, tailored to the common needs of businesses. In addition, businesses can also customize payroll rules according to their own requirements.

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Easily structure salary on demand

Payroll system is built on the principle of inheritance, allowing businesses to create flexible salary structures to serve multiple users. This also makes adding or changing salary rules easy, fast, and accurate. Besides, based on established salary structures, Viindoo Payroll system will automatically calculate salary for each employee monthly.

Integrate employee salary data with Accounting application

Viindoo Payroll has the ability to link with Viindoo Accounting, helping businesses automatically perform accounting operations related to salary. The system automatically records entries related to salary costs, deductions according to established rules and accounting standards.

In addition, Viindoo Payroll also recognizes liabilities to employees and external partners such as insurance and unions. All salary-related entries are automatically transferred to Viindoo Accounting to perform the next accounting steps.

General, KPI payroll software is the optimal solution for medium and large enterprises. Applying payroll software to the operation process will help businesses save costs and time effectively. Read more posts from Viindoo to get a lot of useful knowledge!

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