APPLYING ANALYTICAL HIERARCHY PROCESS (AHP) IN SELECTING HUMAN RESOURCES COMPENSATION PRACTICES AT SMALL AND MEDIUM ENTERPRISES

Abstract

Human resource compensation is one of the most important human resource management practices, having a strong influence on employee performance and the goals of each enterprise. However, currently there are many options for improving human resources compensation policies at small and medium-sized enterprises; therefore, choosing the appropriate option is a challenge for human resources service consulting companies. This research using the Analytic Hierarchy Process (AHP) method can rank criteria and support the selection of the most suitable solution. This study results from human resources experts and AHP analysts show that the solution to reduce working hours meets the given criteria. Then, the study provides several recommendations to improve human resource compensation practices at small and medium enterprises in Vietnam.