Components of Material Encouragement of Enterprise Employees
Journal Title: Бізнес Інформ - Year 2014, Vol 4, Issue 0
Abstract
The article considers main components of material encouragement of labour activity of employees at modern enterprises: wages, bonuses, additional payments, and indemnities. Having analysed functions that wages perform in present times, the article identifies that one of the main functions is the encouragement one since it envisages dependence of the size of wages on individual and collective labour results. This is also confirmed by the acting, in our country, form and system of labour remuneration, conditions of which clearly set dependence between the labour costs of employees and remuneration for the performed work. Bonus systems are used at enterprises along with wages in order to encourage and stimulate employees. The article shows that bonus systems are rather divaricated by their nature and indicators and could be used at enterprises of different branches and spheres of production. Additional payments and indemnities are also important material encouragements for employees. All payments to employees, analysed in the article, are effective instruments of material encouragement, however, they should be fairly set in accordance with labour contributions of employees.
Authors and Affiliations
Nina Ovsiuk
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