Human Resources Management Strategies of Taiwan-based Enterprises in Vietnam

 
4.5 Incentive and Compensation Systems
For the purpose of retaining local talents as well as motivating employees on 
working, company offers preferable incentive and compensation systems to adapt the 
local cultural. Depending on specific of company and nature of work and level of 
employees’ performance, company awards different type of incentive and 
compensation. The participants showed out the incentive and compensation of their 
company as below, 
“For my company, we attempt to train and promote Vie
tnamese employees to get 
higher position as manager or supervisor, etc. Our company HRM strategy tends to 
localized managers. Regarding compensation policy, we imitate Taiwan’s incentive 
policy to apply in Vietnam like as have a travel tour, family allowance, so on. 
Additionally, we award the benefits and payment based on employee performance 
appraisal” (Participant A)

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“We pay salary based on local commodity prices and adjust to fit workers’ demand. In 
each department of company, we have arranged Vietnamese supervisor to manage that 
department. And, we also provide flexible working time to employees in order to suit 
employees demand” (Participant B)
“Regard to key personnel of company such as has good Chinese proficiency or positive 
performance; we will raise the payment, give a promotion and arrange the domestic 
trips, etc.” (Participant C)
“Every year, our company has profits shared to each employee and has incentive 
payment based on productivity. Another incentive system company conducted that 
based on key 
performance indicator (KPI) evaluation then awards bonuses or stock” 
(Participant D) 
“We will have incentive activities every year like as mid
-autumn festival, birthday 
party, the year-end party for employees. Also, we will award the affordable bonuses for 
who achieve output as required and raise the payment as well” (Participant E)
“We set the different salary scales; the higher skill employee will get higher payment. 
We hold the examinations periodical to find out the outstanding employees and to 
enable 
to be improved reasonable” (Participant F)