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Russia Incentives

In a market economy approaches vary with respect to the organization of material incentives for industrial personnel enterprises. Proceeds from the sale of goods become the supreme criterion for assessing the quantity and quality of labor and producers of their main source of personal income. Analysis of existing systems of remuneration showed that not all systems are composed of elements of the material incentives for staff, and the systems that they are used with certain limitations. Because some systems can be used in enterprises with a high level of capital or human labor, other systems require the simultaneous use of bonuses as incentive mechanism based on the results of operations of the enterprise. Of all number of existing systems of remuneration and incentive company personnel choose those that best meet the specific conditions of production (the nature of the products, process technology, the level of organizational leadership, market demand and volume). Experience in organizing study of wages in Russia and in developed countries has confirmed that the advance rate of wage growth compared to the rate of productivity growth, as well as advancing the growth rate of payroll compared inflation rates leads to disruption of economic equilibrium within the state.

In the world practice, there are many examples of the organization wages, which in its composition are organizing incentive staff, which contributes to increased productivity, reduced turnover personnel and production costs. But such an organization may pay to exist in a stable internal potential of the enterprise, security of its financial resources and the availability of favorable conditions for the economic environment. Unfortunately, the terms of the economic environment prevailing in the domestic economy are not favorable. The legislative base in Russia on the organization of payment Labor is a liberal, but the state is actively used such arms tight regulation, as the indexation of income, compensation and minimum wage. In addition, to the level of wages in Russia are much lower than the subsistence minimum. This suggests that it does not fulfill any of its functions – either reproductive or stimulating, or social or regulatory. Regardless of significant amount of scientific research of national and international academic economists on the organization of material incentives for staff, problems of domestic staff incentive enterprises do not have a complete solution. These problems due to the fact that the development of domestic scientists based mainly on older approaches that have been characterized administrative-command economy type.

This approach seeks to provide the status of the market, but their practical application is very unfortunate. No less pernicious is the practice of copying foreign experience incentive without appropriate adaptation to the peculiarities of industrial activities. Under the conditions of the negative impact of environmental factors on the organization of material incentives plant personnel should be based solely on their own capabilities. However, under present conditions to fully use the capabilities of their own industry is complicated, on the one hand, imperfection of the legislative framework and on the other hand, due to the virtual absence of effective models of organization of material incentives for staff. Therefore, there is an urgent need to theoretical basis and practical approaches modeling the organization of material incentives, the introduction of which will enhance productivity, encourage employees and, in eventually – to ensure stability of the company.