Labor incentives as a factor in increasing its productivity

Abstract

This article presents an overview of factors affecting labor productivity growth, a critical assessment of proposed methods for stimulating employee engagement, and a substantiation of the relevance of increasing labor productivity. It also highlights some of the results and challenges identified during the implementation of the national “Labor Productivity” project. An analysis of managerial opinions regarding personnel performance in organizations across various industries, the causes of personnel shortages, and the demand for certain employee qualities is conducted based on semi-structured interviews. Based on VTsIOM survey data, the article identifies the most important employee characteristics to consider when developing incentive systems. The need to revise existing employee motivation and incentive systems, taking into account their needs, opinions, and the organization’s goals, is substantiated. Furthermore, when developing incentive methods, it is necessary to consider different age groups of employees and select appropriate people management methods. An analysis of primary interview data revealed the problem of low management standards in regional companies, particularly in human resources management, while low labor productivity remains a pressing issue for both managers and staff. The development of soft skills among staff remains essential.