Abstract

The article presents an approach to increasing labor productivity by evaluating the labor potential of an enterprise and subsequently developing a personnel incentive system. Labor potential is considered as the ability of human resources to increase their labor productivity by addressing hidden reserves, existence of which depends on internal and external factors. The authors present the results of a construction industry enterprise’s personnel survey. The employees assessed the organization of the labor process, the relationship between the team and departments, their own labor potential, as well as other aspects of their work. The results aim at determining the possible motives of employees to create a staff incentive system. Along with the motives of the staff, the incentive system should take into account the amount of possible labor productivity increase. Thus, it will correspond to the interests of both employees and the enterprise. The study proposes a methodology for assessing the personnel labor potential based on determining the strengths and weaknesses of the studied indicators. The methodology allows to identify promising areas for work with personnel and rationally allocate resources to stimulate labor potential, which, in turn, can reduce time costs and other expences.

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