Abstract

Present-day social sphere of the Russian
 Federation employs over 14.4 million workers;
 the majority (about 5.2 mln) are occupied in the
 educational sphere and another 3.9 mln — in the
 spheres of public health and social services. Remuneration
 of labor system for those occupied in
 state federal institutions is established based on
 the Decree of the Government of the Russian Federation
 №583 as of 5th August of 2008. Introduction
 of the new system has had a positive affect on
 the dynamics in government (municipal) employees’
 compensation. Still, as the evidence shows,
 even the new system of remuneration fails to solve
 the problem of performance-contingent motivation
 for all categories of institutions. Ii is observed that
 in many cases performance indicators and criteria
 are not properly developed and are applied as a
 mere formality. In many public institutions incentive
 rewards are paid as a guaranteed part of compensation
 without any relation to the results of work.
 This is largely due to the extremely low tariff rates
 at the public institutions and their low competitiveness
 at local labor markets. As a result public institutions
 have to reward workers regardless of their
 performance results to retain manpower. The author
 concludes that remuneration of labor systems should
 be adapted to new conditions, aimed at the growth
 of appropriate industries, increase of services quality
 and maintain contingency between the public
 servants’ performance results and their compensation.

Full Text
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