The Impact of Salaries on Direct Production Workers’ Productivity: A Case Study of Garment Enterprises in Vietnam

Abstract

The objective of the study is to evaluate the impact of salaries (including pay level, payment method, salary increase policy, bonuses and financial welfare) on labor productivity of direct production workers in Vietnam garment enterprises. Data was collected on the basis of a survey of 512 direct production workers and processed by SPSS 22 software through correlation regression analysis techniques. The research results show that the labor productivity of direct production workers is not only affected by the pay level, bonuses, financial welfare but also by the salary increase policy and especially the payment method of the enterprise. Basically the author gives some suggestions to improve the salary policy of direct production workers in garment enterprises in order to increase labor productivity.