Work payment as one of the important factors of material incentives

Abstract

Problem setting. One of the problems in our country is ensuring that every citizen has a decent salary for the amount of work he has done. The target of research is devoted to the study of wages as one of the important factors of material incentives for employees. In the current conditions of building a market economy in Ukraine, one of the first tasks of the state is to develop such a mechanism of incentives for workers, in which all elements of remuneration would play a stimulating role in the performance of the employee’s duties. Analysis of resent researches and publications. The work of such scientists as V.M. Bozhko, V.M. Veger, Yu.M. Veres, O.V. Gayeva, O.S. Galchenko, S.Yu. Golovina, V.V. Zhernakov, I.P. Zhigalkin, G.A. Kaplina, R.Z. Livshits, A.V. Moskalenko, A.Yu. Pashherstnik, S.M. Prilipko, O.I. Protsovsky, N.M. Khutoryan, G.I. Chanisheva, O.M. Yaroshenko, and etc. However, despite the considerable amount of theoretical and empirical work of scholars in the field of remuneration, not all aspects of this problem have been sufficiently developed. In particular, the realities of today require an in-depth study of pay as one of the important factors for material incentives for employees. Article’s main body. Revealing the essence of remuneration as one of the important factors of material incentives for employees, the first focus is on defining and clarifying the relation between the terms “pay” and “wages”. The essence of wages is twofold. On the one hand, it is the main source of income for workers and improving their standard of living, so its size largely characterizes the level of well-being of all members of society, on the other - the main mechanism for material stimulation of growth and productivity, and therefore directly affects the pace and scale of social -economic development of the country. It is stated that in order to increase employee motivation through a material incentive, the following principles should be followed: (a) positive promotion is more effective and constructive than negative, especially in the long run; (b) unpredictable and irregular bonuses are better than expected and projected; (c) large and frequent bonuses are usually jealous, small and frequent bonuses are satisfying. At the same time raising wages it is necessary to think carefully and skillfully about the mechanism of raising the remuneration for the work performed in order to better motivate the employee Conclusions and prospects for the development. It is concluded that in order to increase the material interest of employees in the growth of production and increase the efficiency of work of enterprises, it is necessary to improve the systems of material incentives, remuneration for the results of work, other forms of material incentives. In addition to salaries and bonuses, the system of material incentives may include retirement savings, tuition fees (employee or his children), interest-free loans for the purchase of housing, payment for food or travel of employees, payment for employee rest, various benefits, insurance.