Journal of Economics

Formation and development of an effective motivational system in the enterprise will significantly reduce the level of conflict in teams, to harmonize relations in the systems of “employee-employer” and “worker-worker, actually increase the level self-organizing and self-government and, consequently, productivity and quality. To realize these goals can be achieved through the formation and sustained improvement of the motivation of company personnel, focused on providing high quality of work life.

Stimulation of labor as a means of personnel management is to use the whole range of existing forms and methods for regulation of work behavior. This requires a clear systematization of incentives work, identifying the commonalities and differences between them, ensuring their harmonious interaction. Motifs that form a person under the influence of many circumstances, are included under the influence of incentives.

In modern practice, the development of effective systems of motivation of personnel of the enterprise leads to greater productivity, no less than a retooling. Moreover, aware of numerous examples where competitive advantage is achieved not through advanced techniques and technologies, namely on the basis of adequate motivation of company personnel.

As a consequence, an increasing number of employers understand the importance and the growing importance of the motivational component, without which no enterprise can realize its full potential for development as a tactical and strategic aspects.

Since the non-material incentives can act in different forms, their diversity is limited by the capacities of the organization and the needs of workers. If no specific incentives to meet the needs of any category of workers, they have a greater motivational impact.

By intangible forms of motivation usually include:

- Creative stimulation;

- Organizational incentives;

- Corporate Culture;

- Moral motivation;

- Promotion of free time;

- Promotion of education.

Contemporary issues of material labor incentives given sufficient attention. Formation of market relations and a focus on economic management methods involves the use of fundamentally new approaches to the assessment of material labor incentives. Review of scientific literature suggests that to date there is no single methodology for assessing the effectiveness of incentive workers.

Studies show that the complex incentives work the most common and important species is the financial incentives, which regulates employee behavior through various material financial and non-monetary forms of incentives and sanctions. Its mechanism is based on creating conditions for the realization of aspirations of the employee to meet their needs for money as universal equivalent – a means of exchange on a variety of spiritual and material benefits are produced in society. Consumption of these goods entails the development of society, the growth of its prosperity and quality of life in it.

The system of financial incentives – is one of the most effective management tool to influence the performance of employees and the company as a whole. Configured in accordance with the strategic and tactical guidance of the Company, the system of financial incentives will motivate managers to purposefully manage employees and increase productivity and motivation of staff.

There is a constant and variable incentives. The constant part is aimed at meeting basic needs of the worker and his family members, ensures the formation of a sense of stability, confidence in the future, job security and so on. Variable focuses on achieving pre-defined organizational goals, reflects the individual contribution of the worker in the final results of the divisions of the enterprise as a whole.

The main element of the constant part of incentive is salary, which should be defined depending on the minimum wage at the plant and the existing level of wages in the labor market, taking into account additional factors such as level of education, the specific nature of work, seniority and experience on the job.

The main and most widely used in practice a form of variable bonuses are part of the incentive. Bonuses as a method of incentive offers encouraging staff to achieve performance in excess of the social norm of work performance.

Traditional forms of indirect financial incentives for Russian companies include: health insurance and payment of mobile communication, transportation, payment for food and tickets to sports clubs, in addition, to encourage management personnel used purchase the employer’s expense plane tickets, reserved seats in the protected parking, provision of credit, the organization of anti-stress and leisure activities.

Indirect incentives or benefits package is crucial to stimulating the managerial staff, as it is, by far, one of the main advantages of enterprises with them ahead of competitors by investing in the development and welfare of staff. It aims to attract and retain staff, the solution of social problems. Benefits package as well as all other components of the incentive should be individualized with respect to each managerial workers, while at the same time encourage senior employees of the enterprise as a team.

Tangible and intangible incentives complement each other and generalize. For example, obtaining a new position and, accordingly, higher wages yield not only the possibility of acquiring additional wealth, but fame and honor, respect, that is the moral satisfaction of needs. However, one person more important is the material component, and for another – the intangible component of the package of incentives.

In general, one could argue, the organization must be a large arsenal of diverse forms of incentives for company personnel. In this case, to each employee an individual approach is needed to more clearly identify the preferences of the employee and his desire to grow within the organization.

There are many methods that can help motivate employees, the task manager is to decide how it will encourage its employees to achieve the goal, which is to compete successfully with other firms and the prosperity of the company.