Innovative remuneration systems in the period of economic stagnation

Abstract

It has analyzed some tariff-free remuneration systems that are widely used in world practice, and some of them are gradually “entering” the legal realities of Ukraine.
 The author has emphasized that the competitiveness of the remuneration system should ensure the involvement of a workforce with a high level of professionalism and skills, consistent with the strategy and tactics of the organization, especially in times of economic stagnation.
 In a period of economic stagnation, positive foreign experience can be used to implement different remuneration systems. Innovative forms of remuneration, which include tariff-free and flexible systems, have recently become increasingly used to reconcile the interests of employees and employers. Innovative remuneration systems are aimed at providing employees with material incentives that can be most effectively used in the implementation of innovative forms of remuneration.
 Tariff-free remuneration systems can be classified depending on the contribution of employees to the final results of the organization into the following types: 1) a system of floating salaries; 2) an expert system of performance evaluation; 3) a system of remuneration using the coefficient of labour costs; 4) a share system of remuneration; 5) a rate of remuneration; 6) a system of remuneration on a commission basis (PFP – “Pay-for-Performance”); 7) cash payments for the implementation of objectives (Management by Objectives); 8) universal market system of wage assessment.
 Remuneration systems that take into account the work skills of employees, in particular, SBP systems (skill-based pay systems), are common in foreign practice. In world practice, there are also different models of remuneration for work performed, taking into account work skills, focused on both individual and group jobs and types of work.