Purpose: The article aims to improve the methods of motivation and incentives for employees to ensure the sustainable development of domestic enterprises.
 
 Theoretical framework: The spread of market economy elements in Ukraine determines the link between employee performance and the efficiency of business operations. As a result, the scientific literature shows a constant interest in motivation and incentives. This issue is quite important for enterprises that have a heterogeneous staff structure and are significantly influenced by the technological process, which requires qualified and experienced employees. Therefore, the study of the system of motivation and incentives for employees of domestic enterprises is relevant and essential.
 
 Design/methodology/approach: The methods employed in writing the article were analysis, synthesis, generalization, explanation, and data qualification. The following is proposed to be achieved by considering the factors of influence of the external and internal environment of the enterprise, as well as the specifics of personality development.
 
 Findings: Certain tasks were solved in the course of the study. The theoretical foundations of motivation and stimulation of labor are considered and the peculiarities of the functioning of internal labor demand are emphasized.
 
 Research, Practical & Social implications: Promising measures to improve the performance of the labor force of domestic enterprises are proposed.
 
 Originality/value: The author develops appropriate guidelines for the conformation of the system of motivation and stimulation of labor in society at the present stage of development of profit relations.