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THE METRICS OF MOTIVATING FACTORS AND ITS IMPACT ON THE VARIABLE PART OF THE SALARY

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Author(s): E. Stepanova

Journal: Economics of Development
ISSN 1683-1942

Volume: 66;
Issue: 2;
Start page: 128;
Date: 2013;
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Keywords: motivating factors | variable part of the salary | key performance indicators | reward system | financial stimulation of labour activity

ABSTRACT
Under modern circumstances the process of effective incentive system of the labor activity foundation, which provides competitive advantages in using workforce, becomes one of the most important condition of Ukrainian enterprises’ performance growth. But the efficiency of this system mostly depends on the adequate usage of the financial incentives set in real economic conditions. Currently there is almost no ready-made matrix which will be focused precisely on the variable part of the salary. Using such a system in the future gives an opportunity to form and use wage incentive function more effectively.Investigation of the stimulating factors in the labor activity incentive system, which have been grouped according to the degree of influence on the variable part of the salary formation, is the main goal of this article.The subject of the research is incentives matrix.The methods of the research are: method of theoretical analysis, method of scientific literature analysis, and ranking method.One of the most important stages of incentive indicators modeling is to identify indicators, which can potentially affect the growth of stimulation fund.A set of indicators has been chosen due to the economic literature analysis, collective agreements, sectoral and regional agreements.The process of formation has been held by the analysis of different types of bonuses, allowances and excess fares which are common and widely used at Ukrainian industrial enterprises.Due to the analysis of possible causes of the material compensation 28 incentive indicators were selected.The next step of complex system incentive indicators formation is the composition of expert table with indicators.According to the results of the investigation the next groups of indicators have been allocated: indicators of direct influence (9 references and more); indicators of partial influence (5 – 8 references); indicators of possible influence (4 references and less).So, the first group appropriately will contain such incentives indicators, that have the most strong influence on the formation of the motivating part of payroll at Ukrainian industrial enterprises. To the group of indicators of partial influence according to the produced analysis one can refer such indicators which level of influence is temporary. The indicators of possible influence have been characterized by the minimum weight during the accumulation of the financial incentives fund.So, for the most effective implementation and usage of stimulating algorithm at Ukrainian enterprises, taking into account the conditions of incentive system improvement, the most proper indicators of the enterprise’s activity should be emphasized and taken as the key performance indicators of calculating the level of incentive payments and rewards.
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