HRM IN HUNG VUONG TOUR COMPANY

GROUP ASSIGNMENT COMPENSATION AND BENEFITS HRM IN HUNG VUONG TOUR COMPANY CONTENTS CHAPTER 1 INTRODUCTION 1 1 1 Information of Hung Vuong Tour 1 1 1 1 Foundation and Development 1 1 1 2 Organizational.

GROUP ASSIGNMENT COMPENSATION AND BENEFITS HRM IN HUNG VUONG TOUR COMPANY CONTENTS CHAPTER 1: INTRODUCTION 1.1 Information of Hung Vuong Tour 1.1.1 Foundation and Development 1.1.2 Organizational Structure 1.1.3 Business fields of Hung Vuong International Tourism JSC 1.2 Business results of Hung Vuong International Tourism Joint Stock Company 1.3 Human resources situation of Hung Vuong International Tourism Joint Stock Company CHAPTER 2: HRM IN HUNG VUONG TOUR COMPANY .6 2.1 Pay and Reward Policy of Hung Vuong Tour 2.1.1 Salary 2.1.2 Some other regulations on salary in the company 2.2 Hung Vuong Tour’s pay compared to its competitors Table 2.2: Hung Vuong Tour’s pay compared to its competitors 2.3 Compensation package of Hung Vuong Tour 15 2.3.1 Direct compensation (cash) rewards .15 2.3.2 Indirect compensation (non-cash) rewards .16 2.3.3 Total compensation package 17 2.4 Performance measurement and pay incentive programs of Hung Vuong Tour 19 2.5 Strengths and weaknesses of Hung Vuong Tour’s compensation practices 21 2.5.1 Strengths 21 2.5.2 Weaknesses .21 2.6 Solutions to improve Hung Vuong Tour’s compensation practices 22 2.6.1 Improving compensation practices based on employee feedback 22 2.6.2 Compensation policy is based on dedication and loyalty 23 2.6.3 Improving non-financial compensation 23 2.6.4 Completing regulations and procedures for compensation 24 2.6.5 Improving performance evaluation of human resources .24 REFERENCES 26 CHAPTER 1: INTRODUCTION 1.1 Information of Hung Vuong Tour - International name: HUNG VUONG INTERNATIONAL TOURISM JOINT - STOCK COMPANY Short name: HUNG VUONG TOUR., JSC Address: no.2, Group 2, Dong Anh Town, Dong Anh District, Hanoi Telephone: 22170888 - 22310789 Fax: 39650084 1.1.1 Foundation and Development Hung Vuong International Tourism Joint Stock Company (Hung Vuong Tour) was founded on 4/4/2005, through the process of construction and development, so far Hung Vuong Tour has grown up with a wealth of experience, constantly growing and affirming its position in the field of international and domestic travel services With more than 15 years of operation and branding, Hung Vuong Tour has been serving traditional customers who have been with the company for many years Those are large corporations and enterprises, especially large foreign export processing enterprises such as: Canon, Notori, Yamaha, Samsung, Santomas, Toto, Tlip, Anpha or Vietnamese enterprises: Dong Anh Shoe, Hanoi Electricity Corporation, Vietnam Hyundai Steel Corporation, Hung Vuong Tour's business philosophy is to believe that the degree of success depends on the level of dedication to the customer Hung Vuong Tour always tries to understand what customers need and does our best to find the optimal solution With such a business philosophy, customers are the center for all activities of Hung Vuong Tour Hung Vuong Tour's slogan is "Hung Vuong Tour - A reliable companion" Hung Vuong Tour was established to become a reliable address acting as a useful bridge to carry out this mission 1.1.2 Organizational Structure Hung Vuong Tour is organized and operated under the model of a Joint Stock Company, in compliance with Vietnam's enterprise law and current documents Currently, Hung Vuong Tour's organizational structure is an online-functional structure The heads of departments, branches and offices are responsible for managing their departments under the authorization of the Director The organizational and management apparatus of other companies is simple, easy to understand, suitable to the needs and functions set out In addition, functional departments and divisions also contribute significantly to the organization, management, maintenance, and creation of good logistical conditions for the entire staff in the company The organizational structure is based on the principle of unified command, relationships are established vertically, from the leadership to the departments in the company All activities are complied with the above principles to create unity throughout the company Diagram 1.1: The organizational structure of the company (Source: Administration & HR Department of Hung Vuong Tour) 1.1.3 Business fields of Hung Vuong International Tourism JSC * Products: mains products + Tour programs (including domestic and outbound full-package tour) Hung Vuong Tour has designed and built many domestic and outbound tours to serve different customer groups to meet the needs and desires of customers Table 1.1: Some Tour packages Hung Vuong International Tourism JSC No Tour Program Domestic package tour Northern tour: Hanoi, Ha Long - Cat Ba, Ninh Binh, Perfume Pagoda, Sapa, Northeast tourism, Northwest tourism, Central Vietnam tours: Da Nang, Hue, Quang Binh, Phu Yen, Central Highlands, … Southern tours: Saigon, Con Dao, Phu Quoc, Can Tho, … Festival tours: Spring tour, Hung King's anniversary tour, April 30-1/5, National visitor September 2, Sea and island tours: Tra Co, Co To, … International package tour (outbound) China tour (including land and air): Beijing, Guangzhou - Shenzhen, Shanghai, Phoenix Ancient Town - Zhangjiajie, Southeast Asia tour: Malaysia, Thailand, Laos, Cambodia, … Northeast Asia tour: Japan, Korea, … Luxury tour: Dubai, Europe, South Africa, … (Source: Administration & HR Department of Hung Vuong Tour) + Car rental service: Hung Vuong Tour is a leading company providing high quality car rental services in Hanoi, with a fleet of over 100 vehicles with a full range of types from to 49 seats + Other services: air ticket agency for domestic and international airlines: domestic and foreign hotel reservation service, event organization service, conference, seminar, gala dinner, teambuilding, Passport services, immigration services  Tourist market: Hung Vuong Tour has a good number of domestic tourists, but international visitors have only increased slightly Table 1.2: Tourist market of Hung Vuong International Tourism Joint Stock Company over the past years 2018-2019 No Type of Tourists Domestic Proportion Outbound Proportion Total Year Year Compare 2019/2018 +/% 2018 2019 guest 10.023 12.229 2206 122,01 % 79,08 80,29 1,21 guest 2651 3002 351 113,24 % 20,92 19,71 -1,21 guest 12.674 15,231 2557 120,17 (Source: Administration & HR Department of Hung Vuong Tour) In particular, due to the recent influence of Covid 19, along with other travel businesses, Hung Vuong Tour has also slowed down a lot 1.2 Business results of Hung Vuong International Tourism Joint Stock Company Table 1.3: Business results of Hung Vuong International Tourism Joint Stock Company over the past years 2018-2019 Criterias Unit Unit 2018 Total Revenue 2019 Compare 2019/2018 +/% 10.272 123.05 Million 44.559 54.831 VND Total Cost Million 33.241 39.752 6511 119,59 VND VAT Million 4455,9 5483,1 1027,2 123,05 VND Earning Before Tax Million 11.318 15.079 3761 133,23 VND Profit After Tax Million 9054,4 12.063,2 3008,8 133,23 VND Profit Margin After % 20,32 22 1,68 Tax (Source: Administration & HR Department of Hung Vuong Tour) In terms of revenue: the total revenue of 2019 was VND 54.831 million, an increase of 10,272, equivalent to an increase of 23.05% compared to 2018 In which, the largest increase was in revenue from international tourism services, which increased by 5273 million Domestic sales 14.58% but the proportion decreased by 2.3% Revenue of car rental service increased by 2545 million, equivalent to an increase of 30.22% Revenue from other services increased by 284 million but the proportion decreased by 0.1% About costs: the total cost in 2019 was 39,752 million VND, an increase of 6511 million compared to 2018 or 19.59% In which, international tourism services increased by VND 3706 million (equivalent to an increase of 25.28%, the proportion increased by 2.1%) The cost of domestic tourism services increased by 1226 million VND, equivalent to 10.63% The cost of car rental increased by 1471 million VND and other services increased by 208 million VND In terms of profits: revenue, expenses and taxes in 2019 all increased compared to 2018 However, in the actual situation, in the period of 2020 - 2021, Hungvuongtuor's revenue decreased markedly compared to previous years due to the heavy influence of the company Covid-19 1.3 Human resources situation of Hung Vuong International Tourism Joint Stock Company Any business that wants its business to develop and be successful, in addition to capital, human resources are considered an indispensable resource Depending on the nature and size of each enterprise, these resources are allocated more or less Table 1.4: Human resource structure of Hung Vuong International Tourism Joint Stock Company over the past two years 2018 – 2019 Labor Structure Total Labor Unit 2018 2019 ppl ppl ppl 25 12 10 30 15 11 Compare 2019/2018 +/- % 120 125 110 University College Education Intermediat ppl 133,33 e Male ppl 15 17 113,33 Gender Female ppl 10 13 130 English level (TOEIC, ppl 18 23 127,78 IELTS, ) Computer Skill ppl 21 26 123,81 (informatics certificate) (Source: Administration & HR Department of Hung Vuong Tour) From the above table, we can see that the number of employees from 2018 to 2019 increased by people, equivalent to 20% An increase in the number of employees indicates an increase in the size and growth of the company Regarding labor structure by gender: The above table clearly shows that, in both 2018 and 2019, the number of male employees is higher than the number of female employees In 2018, the number of male employees accounted for 60% and in 2019 the number of male employees accounted for 56.67% Since the company operates in the travel industry and often organizes tours, it is necessary to ask for health and flexible time Therefore, it is understandable that the number of male workers is higher than that of female workers Regarding labor quality: In the integrated economy, foreign language is an extremely important and indispensable skill, especially for a company doing business in the service industry From the above table, the professional qualifications, foreign language skills as well as informatics of employees are increasingly improved and enhanced The number of employees with English proficiency in a year has increased by people and is equivalent to 27.78% The number of employees with computer skills also increased by 23.81% Besides, the number of employees with university degrees increased by people in a year This becomes one of the favorable factors to help businesses develop and expand international tourism programs or expand relationships with foreign businesses From all the above factors, we see that the human resources at the company are fully capable, enthusiastic, dynamic and potential However, the company still needs to have measures to train, develop and treat human resources effectively to be able to make full use of this resource CHAPTER 2: HRM IN HUNG VUONG TOUR COMPANY 2.1 Pay and Reward Policy of Hung Vuong Tour 2.1.1 Salary Hung Vuong Tour is currently applying the salary calculation method for the entire company as follows: Salary = Basic salary/26*actual working days - insurance, union The basic salary is the salary agreed between the company and the employee, not calculated according to the salary coefficient as in state-owned enterprises The salary agreement for some positions at the company is as follows: employee VND million, team leader VND 6-10 million, manager VND 11-15 million Insurance includes social insurance 8%, health insurance 1.5%, and unemployment insurance 1% Union dues: Employees who join the union pay 1% of their salary as a basis for paying social insurance premiums With this calculation, the monthly salary is not a fixed number because the standard working days are different every month Some months will have 24, 26 or 27 working days because there are 28 days, 29 days, or 31 days With this form of payment, employees should consider whether to take unpaid leave in a suitable month to rebalance wages and living expenses Not only that, enterprises are also partly affected by production productivity and business activities because employees choose the month with many working days to apply for leave Example comparing ways of calculating salary: An employee of the company called A goes to work with a salary of million April 2021 has 30 days, including Sundays and 26 working days A works full 26 days  Method 1:8,000,000/26X26=8,000,000 VND  Method 2: The agreed salary is million per 26 working days For example, the month of March has 31 days and the actual workday is 27 days So, A's salary will be: 8,000,000/26X27=8,307.692 VND In February there are 28 days but there are Sundays, so the actual number of working days is 24 days A's salary will be 8,000,000/26X24= 7,384,615 VND In February, A works full time but does not get full salary The two ways give two different results, so depending on the situation of the business, choose the appropriate calculation method 2.1.2 Some other regulations on salary in the company Salary calculated for probationary employees During the probationary period, 75% of the salary of the person with the same job title will be paid Overtime pay For weekdays equal to 150% of salary for working time as prescribed, for weekly rest days equal to 200% of salary for working time as prescribed For public holidays, 300% of salary for working time as prescribed Overtime will be checked through the timekeeper, at the time of payment, it will be added to the salary calculated according to the above formula Table 2.1: Salary of some employees at Hung Vuong International Tourism Joint Stock Company in July 2019 (unit: million VND) Position Basic Salary Head of tour operator Business Department manager Business Group Leader Sales Employees Consultant Responsibility No Of Unio Insurance Allowance Workday n Salary 15 4.5 30 2.0475 0.195 15.065 15 4.5 29 2.0475 0.195 14.448 - 29 0.84 0.08 8.003 - 26 0.525 0.05 4.425 29 0.525 0.05 5.002 (Source: Administration & HR Department of Hung Vuong Tour) Allowance Allowance = Basic Salary * Allowance Factor At the company, there is only one allowance that is the responsibility allowance Specifically as follows: Director: 0.5; Head of Department 0.3 Allowances including social insurance, health insurance, unemployment insurance allowance, lunch allowance 700,000VND/month, the union and the company's management board deduct a part of the company's profits every year to establish a welfare fund and a hardship fund Welfare: the union funds collected are used for the following: funeral visits, weddings at the rate of 2,000,000VND; visit staff, wife, husband, children, sick employee's parents hospitalized 500,000VND; giving employees birthday gifts worth 500,000VND; During the year-end party, in addition to the party, the company's employees will be able to participate in music, winning games , every year, the company organizes vacations and cultural activities for employees Responsibility allowance: This is the type of allowance that we will learn and clarify the most, this allowance is for people in all jobs with a high work ethic and Insurance includes social insurance 8%, health insurance 1.5%, and unemployment insurance 1% Union dues: Employees who join the union pay 1% of their salary as a basis for paying social insurance premiums Bonus Bonus revenue: the company is applying the bonus policy according which: The company bears 2% and puts it into the relevant expense accounts, and 1% is deducted from the salary of the staff - workers pellets Health insurance deduction rate = [(decree salary coefficient + position allowance) * minimum salary] * 1% Non-Union Business: is deducted from the total income of cadres employees in the company The deduction rate of 2% of the total salary fund shall be included in the administrative expenses of the enterprise The rate of deduction for union dues = actual salary * 2% The allowance regimes for employees working at the company include: sickness allowance, maternity benefit, occupational disease, retirement, and survivorship allowance Subjects to be considered for the At the end of the month, quarter and bonus are collectives and employees year, the Board of Directors of the 12 to the revenue for all departments in the company The bonus amount is calculated as 3% of the total monthly revenue of the company and is divided equally among the members Extraordinary bonus: every months, employees in the company are considered for additional emulation standards based on work results achieved (completion of assigned work to ensure revenue) In addition to the regular bonus according to the fund, the company also has an unexpected bonus of 1% of the total monthly revenue when employees find new customers, consume many products, and increase sales who have worked regularly in the Company for year or more, well observed the labor rules, and contributed to the Company's business results The bonus fund is mainly extracted from the company's profits Objects of reward are individuals or groups with excellent achievements at work, loyal people who have contributed to the development of the company Year-end bonus Every year, if the company makes a profit, the company will deduct from the profit to reward employees, this bonus level depends on the company's annual profit The specific salary for each employee depends on their contribution in the company During the holidays of April 30 and May 1, September 2, New Year's Eve, seniority Bonus amount ranges from 300,000 13 Company meets to conduct the review and reward and vote for individuals according to the Company's reward standards such as: Bonus according to monthly productivity, also known as active labor money The pole is charged for employees who work full time during the month and increase at peak times is 500,000 VND 1,000,000 VND/month Bonus monthly/quarterly/yearly based on salary from 100,000 VND -300,000 VND 500,000 VND depending on the business results of the company Evaluated according to the bonus policy of Green Bay Tourism Development Co., Ltd 14 2.3 Compensation package of Hung Vuong Tour Compensation package is the combination of the salary and various benefits an employer in the offers to employee in exchange for employment Basically, the Hung Vuong Tour has a general compensation package for all employees in the company but vary by specific positions The general compensation package of Hung Vuong Tour Company consists of both direct compensation (cash) and indirect compensation (noncash) rewards 2.3.1 Direct compensation (cash) rewards The direct compensation of Hung Vuong Tour includes:  Salary or hourly wages: amount of money employees make for doing their job, the formula to calculating annual salary and hourly wages has already been mentioned in the previous part  Wages for overtime: the amount of money which employees are paid for working overtime in accordance with The Vietnam Labor Code's regulations  Bonuses: includes Revenue bonus and the Extraordinary bonus according to the fund every months as well as 1% of total monthly revenue  Allowances: is a payment made to an employee to cover expenses or compensate for specific working conditions However, in Hung Vuong Tour Company, there is only one kind of allowance which is the responsibility allowances - payment made to somebody who has special responsibilities Only two positions can receive this kind of allowance that is Manager and Head of Department  Subsidy: includes social insurance, health insurance, unemployment insurance benefits, lunch allowance of 700,000VND/month + Social Insurance: The company pays full social insurance for all full-time employees and employees who have signed labor contracts of months or more Every month, the company pays 26% of the social insurance money to the state The settlement and payment of Social Insurance shall be made by the company in accordance with the provisions of the Charter of Social Insurance Based on the salary level, the accountant calculates 26% of the total salary of the employees in the company, of which: 8% is deducted from the employee's basic salary and 18% is recorded in the business expenses of the company company to submit to Social Security + Medical Insurance: Health insurance is paid 100% by the company for employees at the rate of 4.5% according to the provisions of the Law on Health Insurance: Of which 3% is accounted into the company's business expenses and 1, 5% deducted from the employee's basic salary to pay for the Health Insurance 15 + Unemployment Insurance: monthly unemployment insurance premiums of employees and employers are determined as: employees pay 1% of monthly salary and the employer contributes 1% of the monthly salary fund of the participating employees  Welfare: a fund set up by the company, providing benefits to workers during a period of unemployment or disablement, as salary continuance while ill 2.3.2 Indirect compensation (non-cash) rewards 2.3.2.1 Compensation through work Employees are entitled to an attractive salary and bonus scheme The job is suitable for the employees themselves: the company has been trying to arrange and use personnel in the most suitable way with the employees' capacity, expertise, and aspirations The job offers opportunities for advancement: the company has a young team of staff, and some have achieved the position of department head or team leader in the company when their performance is assessed and recognized Challenging work: management needs to give employees more difficult and important jobs that require professional qualifications, experience, as well as higher salaries and bonuses to help employees develop to the best of their ability as well as to try harder at work, but it must not be too difficult compared to the capacity of the employee to avoid overloading pressure on employees 2.3.2.2 Compensation through the working environment  Working conditions and occupational hygiene and safety: Employees are equipped with necessary technical facilities for professional activities The working environment is hygienic, clean, cool, light is guaranteed, the air temperature is suitable, etc The departments are spaciously arranged and fully equipped with facilities for work such as computers, telephones, fax machines and necessary stationery, etc Each employee is given a uniform consisting of white shirts and jacket with the company's logo printed on it The company also strictly abides by and is fully equipped with labor protection equipment, fire safety according to regulations and guidelines of the Department of Labor Safety, Ministry of Labor, War Invalids and Social Affairs  Working atmosphere: Employees can create a comfortable working atmosphere as well as organize cultural, artistic, physical training and sports movements, mass activities such as organizing the company's cooking contest, meeting activities anniversaries, parties, parties for all employees and their families to participate Besides, every year the 16 company also organizes for employees to go on vacation, spring vacation, etc to help the solidarity between employees in the company be closer as well as the distance between everyone people in the company are reduced  Building good working relationships: All levels of management, leaders always have appropriate and proper attitudes, have sincere concern for employees The company's managers know the name as well as the family background, strengths and weaknesses of employees, etc., and regularly visit and encourage their subordinates In addition, they also give employees a feeling of closeness and closeness like family between superiors and subordinates and between employees, making employees feel comfortable and familiar like at home nor indifferent, excessive when working The employees in the company are treated equally at work as well as the compensation and compensation policies so that employees not feel undue discrimination at work  Working hours: days a week, hours a day: morning from 8:00 am to 12:00 pm, afternoon from 1:30 am to 5:30 pm Employees must comply with the working time and hours and must not be late to return earlier than the specified time However, employees can change shifts whenever they are busy or attend training  Encourage timely achievements: Every month, employees with good achievements will be commended and rewarded to encourage and motivate employees to work, and vice versa, individuals with shortcomings will be reminded to draw lessons, experiences and learn from each other Avoid repeating previous mistakes  Care about the health and working conditions of employees: Hung Vuong International Tourism Joint Stock Company constantly improves working conditions and facilities to ensure health, comfort and create the most favorable conditions for employees working at the enterprise The company maintains and performs well the health care work for employees, supports employees in periodic health checks, etc During the outbreak of the Covid epidemic, the company ensures to comply with the implementation of adequate epidemic prevention measures for employees: disinfecting, disinfecting the company, the working area of all employees in the company, especially high contact surfaces; equipped with alcohol-based antiseptic solution; require employees to wear masks, make a full medical declaration and self-isolate at home, if returning from an epidemic area or showing signs of coughing, fever, sneezing, difficulty breathing; 2.3.3 Total compensation package 17 In order to point out the slightly differences in the compensation package in Hung Vuong Tour Company of different employees’ positions, the diagram below will indicate the criteria that is included in the compensation package As we have mentioned, there will be a slight difference in the total value of compensation based on the position of each employee and only two positions which are the Head of Department and Director will have additional responsibility allowances Diagram 2.1: The total compensation package of Hung Vuong Tour Company In order to have a better understanding, let’s look into an example of compensation package of Sale Employee and the Head of Tour Operator Department: Table 2.3: Example of compensation packages for Hung Vuong Tour employee (currency: VND) Criteria Annual salary Bonus & Commission Allowances Subsidy Welfare Career development Health & Security programs Pay for time Sale employee 5.000.000 Depends on employee ability Head of TO Department 15.000.000 Depends on employee ability None Responsibility Allowances: 4.500.000 + Social Insurance: 900.000 + Social Insurance: 2.700.000 + Medical Insurance: 150.000 + Medical Insurance: 450.000 + Lunch meals: 700.000 + Lunch meals: 700.000 Equally received among employees Equally received among employees Equally received among employees Equally received among employees 18 not worked Services & Equally received among employees Perquisites Estimated ≥ 6.0750.000 VND ≥ 23.350.000 VND Total Value As showed in the table, though they include a basic general salary, the fringe benefits included often depend on the specific position of employees While some employees are offered large compensation packages with more benefits, others are offered minimal benefits and smaller compensation packages 2.4 Performance measurement and pay incentive programs of Hung Vuong Tour  Overtime pay On weekdays, overtime pay equals 150% of the prescribed working time salary On weekends, it is equal to 200% of the prescribed working time salary On public holidays, it is equal to 300% of the prescribed working time salary Overtime time will be checked through the timekeeper and at the time of payment, it will be added to the salary calculated according to the above formula  Revenue bonus The company applies the bonus policy according to revenue for all departments in the company The bonus amount is calculated as 3% of the total monthly revenue of the company and is divided equally among the members  Performance bonus Every months, employees in the company are considered for additional emulation standards based on work results achieved (completion of assigned work to ensure revenue) In addition to the regular bonus according to the fund, the company also has a bonus for superior performance of 1% of the total monthly revenue when employees manage to find new customers, consume many products, and increase sales  KPI bonus The table below shows how to calculate the task completion coefficient of individual employees according to the KPIs evaluation results The KPIs evaluation system is divided into levels of mission completion and incompletion, which are conventionally assigned levels from A to E Table 2.4: Task completion coefficient of individual employees according to the KPIs evaluation results Level of task completio n Unclassified (disciplined ) Task not complete d Task complete d but with a few 19 Task complete d Task complete d well Task complete d with excellence mistakes KPIs rating results Rating score (100point scale) Task completion coefficient (K) F E D C B A ≤ 37 38 – 52 53 – 72 73 – 89 90 – 100 0,85 0,95 1,05 1,15 The coefficient K illustrated in the table means: - Individuals who achieve level A KPIs are entitled to a 15% salary increase - Individuals who achieve level B KPIs are entitled to a 5% salary increase - Individuals who achieve level C KPIs are entitled to 100% salary - Individuals who achieve level D KPIs will be reduced by 5% of salary - Individuals who achieve level E KPIs will be reduced by 15% of salary - Individuals who achieve level F KPIs will not receive salary of that month  Individual commission  For each product sold, the employee's commission is 5% Group performance bonus (applied for sales teams) Bonus percentage = 1% For example, sales team A reached the target of billion VND in revenue There are employees in the group, so each employee will receive a bonus of: (1.000.000.000 x 0,1) /5 = 20.000.000 In addition, performance is measured by both individual and objective measurements such as financial ratios The individual goals are discussed and decided together with either the colleague or the executive above, and new individual targets are made each year The objective targets are financial and accounting ratios such as Economic Value Added (EVA), Return on Equity (ROE), Return on Capital Employed (ROCE), and Earnings before Interests and Taxes (EBIT) The objective goals change every year, and depend on which strategy the company takes for the year Customer satisfaction is an important factor when evaluating the top management’s performance The CEO is also evaluated by how satisfied the personnel at Hung Vuong Tour are working at the company Furthermore, the CEO is evaluated by the budget as well, where he is expected to keep earnings up and costs down 2.5 Strengths and weaknesses of Hung Vuong Tour’s compensation practices 2.5.1 Strengths 20 The company appreciates the value of each employee in the team The company exists and develops when there is unity of its members, from senior managers to operational staff Comfortable working environment without stress The Board of Directors is interested, sociable, understands the situation of employees and regularly visits their subordinates Working conditions and environment are guaranteed, the company's uniforms are given, fully equipped with convenient technical and material facilities for professional activities The working environment is guaranteed to be clean, cool and safe, complying with regulations on fire prevention and fighting and labor protection as prescribed The company offers training policies, employee compensation, rewards and punishments, and creates competitiveness in work to help employees improve themselves, opportunities for advancement at work The company maintains and performs well the health care for employees, supports employees in periodic health check-ups During the Covid epidemic period, the company ensures to comply with the implementation of adequate epidemic prevention measures for employees Clear financial incentives, salary and bonus for revenue and unexpected bonuses, allowances for some positions such as director and head of department; allowances: including social insurance, health insurance, unemployment insurance benefits, lunch allowance; employee's hospitality allowance, sick visit of employees and family members, gift giving on employee's birthday Organizing cultural, artistic, sports, mass activities such as organizing the company's cooking contest, commemorative meeting activities, parties, and parties for all employees members and their families participate Besides, every year the company also organizes for employees to go on vacation, spring vacation at the beginning of the year, to help the solidarity between employees in the company be closer as well as the distance between everyone people in the company are reduced The benefits for employees are guaranteed and promoted so that they can work with peace of mind such as: employees are allowed to participate in social insurance, health insurance and voluntary insurance When there is any problem related to compensation, there will be a basis for quick resolution 2.5.2 Weaknesses Compensation policy for employees, department heads are only based on subjective opinions of individuals, not based on opinions or objective feedback from employees in the department 21 There is no reasonable compensation commensurate with the loyalty and devotion of longtime employees Non-financial compensation is still limited, there are not many activities to emulate, cultural, artistic and sports movements are still limited The regulations and procedures for compensation have not been completed; The new reward system only applies to revenue, regardless of the value of each employee's contribution There are not many forms of reward; The policy of bonus according to revenue divided equally on the total number of employees without regard to the rank and contribution of each individual is unreasonable The assessment of human performance is still limited, only from direct management, not from many other sources of information such as colleagues, subordinates or employees themselves 2.6 Solutions to improve Hung Vuong Tour’s compensation practices 2.6.1 Improving compensation practices based on employee feedback In the context of the volatile economic situation, especially now the tourism industry in general and travel companies in particular are affected by many external factors So how can businesses stand, maintain and develop their business activities? It is based on the internal capacity of the enterprise and especially human resources Employees come to the business, work and devote to the business with the highest purpose of receiving a commensurate salary and bonus They want through the implementation of the organization's goals to achieve their personal goals Therefore, if the enterprise wants to achieve its goals, it must first have a reasonable compensation policy to satisfy the needs of its customers Before offering compensation policies to employees, businesses need to conduct employee satisfaction surveys about that policy and from there find out what their problems and desires are Thereby, it is possible to improve and perfect the compensation policy right at the time it has not been put into effect to limit the limitations that it brings At this stage, businesses often use surveys and face-to-face interviews to better understand human resources Employees are encouraged to give their opinion on the points of satisfaction and dissatisfaction about the company's compensation and working environment This is an extremely necessary action when starting to implement a compensation policy because the compensation policy offered is to satisfy employees, so that they devote themselves to the business Once the compensation policy has been completed based on the selective absorption of employees' opinions, when that policy is put into practice, the administrator continues to monitor and survey the effectiveness of the policy such treatment and always listen 22 and understand all the thoughts and aspirations of junior employees, promptly detect limitations and reasonable remedial action 2.6.2 Compensation policy is based on dedication and loyalty The nature of the business is a tourism business, so it needs a lot of talented, creative and enthusiastic young workers, so it is very important to supplement and focus on developing this human resource However, that does not mean that the compensation regime can reduce the interest in long-term, dedicated and loyal workers The business situation faces many fluctuations, in the future trend when tourism develops again, the competition for human resources in the industry will be high That means businesses must respect current human resources, especially highquality long-term employees, because that way, when faced with difficult situations, they will not leave the business Moreover, having a good compensation policy for loyal employees is both to retain that human resource and for young human resources to take it as a motivation, stay and make long-term dedication to the business Finding the right human resources is not easy, training and letting them stay is not easy, and keeping them in the business for a long time is even harder Therefore, long-term employees need to have more and more reasonable priority regimes based on their working ability Specifically, it is possible to introduce some policies such as a revenue-based bonus that is slightly higher than the company-wide average, and organize a ceremony to honor members who have long devoted themselves and are dedicated to the company work, create a comfortable working environment, pay more attention to personal life, 2.6.3 Improving non-financial compensation Along with the financial compensation in the form of salary, bonus, allowance, and allowance, the non-financial compensation also greatly contributes to promoting the working spirit of employees Non-financial compensations can be mentioned as working environment, workplace facilities, organizational culture, working atmosphere, relationships with colleagues, interest of the company , entertainment activities, sports, events, There are many human resources who refuse to work in other companies with higher wages because of the good non-financial incentives in this company than Hung Vuong travel company needs to be aware of the importance of non-financial compensation, so that there are reasonable solutions to promote employee morale First, it is necessary to build a healthy, nice and valuable organizational culture to create pride for employees when they work here Elements of organizational culture such as core values, behavior among colleagues, style of senior managers, etc This is a tourism business, so organizational culture needs to be flexible, dynamic, unrestricted, comfortable for all employees to be creative, 23 subordinates are free to express opinions to their superiors, there is regular cooperation and cohesion among members of the company, leaders Senior level should pay more attention to lower level employees In addition, every year it is necessary to organize sports tournaments for both men and women such as internal company football tournaments, talent and beauty contests for women, special holidays depending on the situation Events will be organized and gifts will be given to employees Because of the nature of a travel company, all of them have to work a lot during the main travel season, so in the off-season, they can organize trips for employees to experience, both to relax and to improve their experience Leaders need to pay more attention to employees' working hours and rest, take measures to help employees reduce stress and avoid overwork 2.6.4 Completing regulations and procedures for compensation Hung Vuong tourism company should apply the salary payment method that is being applied by many businesses today, which is the 3P method to help stimulate employees to work effectively and have high productivity at work, creating a comfortable working environment let employees their best 3P here includes: Position, salary is paid according to that employee's current position and is often called a hard salary; Person (individual) is paid according to the capacity and experience of the person holding that position and Performance (productivity) is paid according to the work performance that the person achieves In addition, bonus is the amount of money that employees receive based on the annual production and business results of the enterprise and rewards for achieving success in projects, development plans of the enterprise, employees and employees effective new ideas Do not stop at the bonus as a percentage of revenue because this form of bonus is uniform and does not specify who is responsible for it There are employees who contribute little to the revenue generation process but still receive the same bonus as other employees The bonus regime in addition to the general revenue bonus should set out KPIs for each department and individual and reward according to the level of KPI completion that has been given to maximize the capacity of employees 2.6.5 Improving performance evaluation of human resources In order to provide a reasonable compensation regime, managers must conduct a process of evaluating the performance of personnel The evaluation depends on many different factors such as the employees themselves, administrators, colleagues, the current situation of the company, etc To ensure the evaluation process is objective, the administrator should not only rely on based on subjective evaluations based on their own feelings or the achievements expressed in numbers by that employee The company should apply the evaluation form chosen by many large enterprises, which is 24 for that individual employee to evaluate himself first, then based on that and the manager's subjective opinion in combination with the peer assessment to give the most objective evaluation results The results of the evaluation before being carried out will be officially disclosed to the staff and ensure that no one disagrees with the results In the self-assessment, it is necessary to encourage employees to boldly state their own strengths, weaknesses and goals to be achieved in the future Through the process of assessment and self-assessment, the administrator will understand the current status of the employee and offer a reasonable form of compensation and the direction of this personnel development in the future 25 REFERENCES Dong Ngoc Quynh Giao (2021) – Tổ chức đãi ngộ nhân lực Công ty Cổ phần du lịch quốc tế Hùng Vương, Trade University Vu The Minh (2018) – Một số biện pháp nhằm nâng cao hiệu sử dụng nguồn nhân lực công ty TNHH phát triển du lịch Vịnh Xan, Hai Phong Private University Hoang Thi Thanh Tuyen (2017) – Giải pháp nâng cao động lực làm việc nhân viên công ty cổ phần du lịch Đông Hà Travel, Hue University 26 ... 26 CHAPTER 1: INTRODUCTION 1.1 Information of Hung Vuong Tour - International name: HUNG VUONG INTERNATIONAL TOURISM JOINT - STOCK COMPANY Short name: HUNG VUONG TOUR. , JSC Address: no.2,... 2: HRM IN HUNG VUONG TOUR COMPANY .6 2.1 Pay and Reward Policy of Hung Vuong Tour 2.1.1 Salary 2.1.2 Some other regulations on salary in the company 2.2 Hung Vuong Tour? ??s... International Tourism JSC 1.2 Business results of Hung Vuong International Tourism Joint Stock Company 1.3 Human resources situation of Hung Vuong International Tourism Joint Stock Company