Abstract
Modeling the effectiveness of employee compensation by evaluating the relationship with the factors of the labor intensity of products, work experience, and incentive payments based on a linear model of multiple regression on the main components. In this paper, several methods are utilized, including the classical least squares method, variation inflation factor, principal component method. It is expected with theoretical representations that the labor intensity of products reduces the efficiency of employee remuneration, the experience and incentive payments in the General Fund of remuneration positively contribute to the increase in the efficiency of employee remuneration. The expediency of applying linear regression to the main components for measuring internal corporate factors of the employee remuneration system is shown since the linear model of multiple regression can give incorrect estimates due to collinear regressors. A methodological way to modeling employee remuneration effectiveness based on a regression on individual determinants of the motivation and remuneration system has been developed. The developed methodological means to modeling employee remuneration effectiveness has been tested on a poultry enterprise's data for the period from January 2015 to March 2020. The article's main conclusions can be used in the scientific and practical activities of agricultural enterprises in measuring and evaluating the effectiveness of using financial resources to pay.
Highlights
Changing the model of economic development against the backdrop of the digitalization of economic processes poses challenges to the remuneration system, the solution of which is associated with an objective assessment of its effectiveness
The data sample consists of six quarterly economic and financial indicators of the enterprise from January 2016 to December 2019, obtained from the official SPARK corporate information disclosure network: Y-salary, RUB.; X1 – the share of workers employed in poultry production, the total headcount of the enterprise, %; X2 – the average salary per employee, RUB; X3 - average work experience per employee, years; X4 – the complexity of poultry production, hour/RUB; X5 - share of incentive payments related to production results in the total payroll, %
Regressor X5 - the share of incentive payments related to production results in the general fund of remuneration has a weak line (Ryx5 = 0.210), and regressor X1 - the share of employees engaged in poultry production in the total number of employees of the enterprise (Ryx1 = - 0.179) - a weak inverse connection to salary
Summary
Changing the model of economic development against the backdrop of the digitalization of economic processes poses challenges to the remuneration system, the solution of which is associated with an objective assessment of its effectiveness. It is important to solve the problems of consistency of the employee's remuneration system with the final results of the enterprise (Chingos, 2002) Addressing these issues requires improving approaches to modeling and evaluating the remuneration effectiveness, considering factors that affect both motivation and incentives for employees and their performance (Sungatullina et al, 2018). This approach will contribute to an objective assessment of the current remuneration system, considering the use of financial resources in the implementation of business goals (Sungatullina, Faizrahmanova, 2016) In this context, the main task of modeling is an integrated process that allows you to bring stable success to the enterprise. It permits to increase the level of competitiveness of the enterprise (Kulikova et al, 2016, Safiullin et al, 2018)
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