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Part 8 | From framework to execution: Case studies in pay level design
Part 8 of the Executive Series: Compensation strategy in Vietnam — Essential insights for business leaders
Welcome back to our Executive Series exploring compensation strategy in Vietnam. In Part 7, we examined the fundamentals of strategic pay positioning — defining what the “right” salary level is for your organization by aligning with business objectives, workforce segmentation, and market intelligence.
If you missed Part 7 — “Defining your compensation positioning: What is the ‘right’ salary level for your organization?” — revisit it here.
Strategic pay positioning in practice
Building on these foundations, this edition illustrates how companies apply pay strategy decisions in the real world. Through two case studies, we examine how market benchmarks, compensation philosophy, and organizational priorities are integrated to create effective salary structures.
Case Study 1: Company A — Prioritizing top talent acquisition for market entry
Business context
Company A has recently established its local subsidiary as part of a new market entry strategy. Its immediate and highest priority is securing strong managerial talent to lead operations effectively from inception.
Total rewards strategy
| Component | Staff | Management |
|---|---|---|
| Reward focus | Standard talent acquisition | Top talent acquisition |
| Total Rewards positioning | Market median (P50) | Premium (P75) |
| Benefits | Minimum (P25) | Minimum (P25) |
| Work-Life | No flexibility (P40) | High workload, no flexibility (P25) |
| Career | Strong development opportunities (P75) | Active leadership development pipeline (P90) |
| Pay (base salary & cash compensation) | Slightly above market (P60) | High (P75) |
Staff-level:
- Focused on hiring standard-calibre personnel at market median total rewards (P50), with slightly above-market pay (P60) to remain attractive despite minimal benefits.
Management-level:
- Competitive P75 positioning to reliably secure top-tier managerial talent essential for successful business launch.
Benefits & Work-Life:
- Currently limited (P25), but offset by compelling career opportunities, such as direct technical transfer from expatriates and fast-tracked leadership development.
Strategic intent and expected outcomes
Objective: Overcome limited non-financial rewards by leveraging competitive pay levels and strong career development to attract key managerial hires.
Outcome: Realise planned leadership recruitment, ensuring operational readiness and market entry success despite infrastructure limitations.
Case Study 2: Company B — Enhancing retention and growth of mid-level talent
Business context
Company B faces a common but critical challenge: its management positions are occupied by long-serving leaders, leaving high-performing mid-level staff with no clear promotion pathway. As a result, these employees are leaving for competitors that offer faster career progression and higher pay growth.
Total rewards strategy
| Component | Staff | Mid-level | Management |
|---|---|---|---|
| Reward focus | Retain standard performers | Retain and develop high performers | Retain standard managers |
| Total Rewards positioning | Market median (P50) | Premium growth potential (P50 → P75) | Market median (P50) |
| Benefits | Standard (P50) | Enhanced (P60) | Very strong (P75) |
| Work-Life | Standard (P50) | Standard (P50) | Standard (P50) |
| Career | Standard (P50) | Expanded career pathways & development investment (P50 → P75) | Standard (P50) |
| Pay (base salary & cash compensation) | Market median (P50) | Significantly above market (P50 → P85) | Market median (P50) |
Mid-level staff:
- Expanded pay ranges up to P85 to create meaningful upward earning potential, fostering the belief that “continued commitment and performance here will be rewarded.”
- Introduced dual career paths, enabling progression as “high-level specialists” even without managerial promotion, supported by additional development investment.
Benefits:
- Already relatively competitive (P60), strengthening the overall employee value proposition.
Strategic intent and expected outcomes
Objective: Increase mid-level retention and engagement by combining competitive pay progression with expanded career opportunities, mitigating turnover risk caused by limited managerial openings.
Outcome: Build a stronger future leadership pipeline by ensuring high-potential talent chooses to stay and grow within the organization.
Key takeaway: Designing pay as a strategic lever
These real-world examples highlight that effective compensation design is not about copying market benchmarks, but about:
1. Defining clear strategic objectives: What specific business and talent outcomes are you aiming to achieve?
2. Positioning pay purposefully: Where will you align or intentionally deviate from market benchmarks to achieve these outcomes?
3. Integrating pay with Total Rewards: Ensuring compensation is reinforced by benefits, career development, and work-life initiatives to deliver a compelling employee value proposition.
Remember, benchmarks are reference points, not rules. Strategic pay design means using them deliberately to support your organizational goals.
Gain market clarity and align your compensation strategy with confidence.
Participating companies in the Vietnam Salary Survey 2025 will receive a complimentary summary report consolidating key salary benchmarks in the Vietnamese labour market. The survey closes on July 31..
[Join the survey now] — Design your pay strategy with data-driven confidence.
📍Next in Part 9
Maintaining pay structures: Short- and long-term review strategies
Once designed, salary structures require ongoing review to remain effective. In Part 9, we will explore frameworks for annual market checks (short-term adjustments) and mid-to-long-term redesigns to ensure your pay strategy continues to support organizational performance and talent competitiveness.
