<\/span><\/h2>\nPersonnel costs include not only salaries and benefits, but are also affected by many external factors. If businesses do not identify them early, this expense can <\/span>growing rapidly out of control<\/b>, directly affecting cash flow and profits.<\/span><\/p>\nBelow is <\/span>4 common reasons for high labor costs<\/b>:<\/span><\/p>\n<\/span>Overtime pay increased sharply<\/b><\/span><\/h3>\nAccording to <\/span>Vietnam Labor Code<\/b>When employees work overtime, the company must pay:<\/span><\/p>\n\n- 150% weekday salary<\/li>\n
- 200% weekly day off salary<\/li>\n
- 300% salary on holidays and Tet.<\/li>\n<\/ul>\n
If businesses do not optimize their work processes, it will lead to employees regularly working overtime, <\/span>Personnel costs will increase very high<\/b>, but actual performance does not increase proportionally.<\/span><\/p>\nFor example: A business has 50 employees, each employee works overtime on average 10 hours\/month with a salary of 50,000 VND\/hour -> Total overtime costs can be up to 25 million VND\/month, equivalent to 300 million VND\/year.<\/p>\n
<\/span>Changes to overtime and benefits regulations<\/b><\/span><\/h3>\nThe State's labor policies are constantly adjusted to <\/span>protect workers' rights<\/b>This means that businesses will have to:<\/span><\/p>\n\n- Pay extra overtime<\/b> for more employees.<\/span><\/li>\n
- Increase mandatory benefits<\/b> such as health insurance, social insurance, annual leave...<\/span><\/li>\n<\/ul>\n
If the business does not update in time or does not have <\/span>budget plan<\/b>, personnel costs will <\/span>sudden swelling<\/b>, causing difficulties in cash flow.<\/span><\/p>\n<\/span>Basic salary increases according to market<\/b><\/span><\/h3>\nEvery year, the State adjusts <\/span>regional minimum wage<\/b>, resulting in:<\/span><\/p>\n\n- Basic salary increase,<\/span><\/li>\n
- Social insurance, health insurance and unemployment insurance contributions increased accordingly.<\/span><\/li>\n<\/ul>\n
In addition, in the context of fierce competition for human resources, businesses are also forced to <\/span>salary and benefits increase<\/b> to retain good employees, leading to increasingly high personnel costs.<\/span><\/p>\n<\/span>Employee benefits and care<\/b><\/span><\/h3>\nIn order to build an attractive working environment, many businesses invest heavily in:<\/span><\/p>\n\n- Health care program,<\/span><\/li>\n
- Travel, team building,<\/span><\/li>\n
- Bonus, travel allowance, lunch\u2026<\/span><\/li>\n<\/ul>\n
Even though it brings long-term benefits, if not properly managed, <\/span>reasonable control<\/b>, these expenses may <\/span>accounting for 20-30% of total personnel costs<\/b>, putting pressure on the budget.<\/span><\/p>\nIdentifying the cause clearly helps businesses <\/span>proactively control and budget human resources<\/b>, avoid overspending and affecting profits.<\/span><\/p>\n<\/span>Effective human resource cost optimization solution for businesses<\/strong><\/span><\/h2>\n