A Study on Salary Management in Construction Firms

Salaries are the price of labor power per unit of time (Ehrenberg & Smith, 2014) [8]. In order to improve the efficiency of the use of wages, it is necessary to manage wages so that wages can play the role of leverage and encourage employees to work enthusiastically. This study investigates salary management in construction firms in Hanoi, Vietnam. Salary management is measured through five components, including (i) creating a salary management strategy, (ii) organization for implementation, (iii) monitoring and inspection, (iv) measuring and correcting, and (v) a salary distribution policy. Data were collected from questionnaires of 769 employees who are working at construction firms in Hanoi, Vietnam. The quantitative approach is employed for evaluating salary management. The results reveal that salary management includes five components that are highly appreciated. Based on the findings, some recommendations are proposed to fulfill salary management.