The features and importance of pay for performance introduction into the business practice of organizational management

Abstract

Compensation systems for work, such as individual payment schemes for the results, are an important approach to harmonizing the interests of the employer and employee within the organization. However, the prevalence of payment by results in Russian practice remains quite low, despite successful implementation examples. The analysis of a number of factors that may contribute to or hinder the implementation of payment according to the results, including under Russian conditions. Among these factors, both external and internal are noted, although the authors emphasize the more pronounced influence of the latter. The authors argue that the application of payment by results only to certain groups of company employees: managers, specialists, knowledge workers - rarely seems really justified by the real limitations. Among external influencing factors, the authors pay special attention to the level and characteristics of labor market regulation. The main ones among internal ones include the level of need for changes in the wage system, the degree of readiness for changes in the company as a whole and its individual subsystems, the qualifications of employees, especially managers, as well as the established corporate culture. As a result, certain conclusions were drawn about the possibilities, features and prospects of introducing payment according to the results both in general and in the context of Russian business practice. Nevertheless, it is indicated that a simple borrowing of foreign practices and methods of introducing payment according to the results in Russian conditions cannot bring complete and positive results due to differences in macroeconomic and social conditions.