METHODOLOGICAL APPROACHES TO THE ASSESSMENT OF THE EFFECTIVENESS OF STAFF INCENTIVE AND ENGAGEMENT SCHEME

Abstract

The article deals with the topical issues of the research of staff incentive and en-gagement essence at the enterprises of both budgetary and commercial spheres in the context of their effective management and improvement of innovative activity. The article states that the incentive and engagement scheme, based on a comprehensive assessment of staff, makes it possible to accomplish a number of important tasks: to identify the degree of professional compliance of a candidate with the requirements for specific job functions; to calculate the ratio of “cost-result of work” of an individual employee; to compare the labour costs of different employees in the team and identify factors that affect significant deviations in performance; to work out the optimal mechanism of staff incentive and engagement aimed at solving the identified problems; to determine the criteria for assessing the effectiveness of motivational and stimulating tools. On this basis, business entities form an objective need to develop effective instruments for tangible and intangible incentives, as well as to improve the existing ones and develop new methods of staff assessment. At the same time, the existing tools of staff incentive and engagement do not fully meet the needs of modern organizations. This contradiction determined the choice of the topic for our research. The purpose of the research is to develop methodological approaches and practical recommendations for improving staff incentive and engagement scheme. In our opinion, the methodology for assessing the effectiveness of the employee incentive scheme should consist of a set of indicators that evaluate “economic effectiveness”, “social effectiveness”, “effectiveness for employers” and “effectiveness for employees”. The author proposes the methodology of assessing the effectiveness of the incentive scheme, which will best reflect the specifics of an enterprise activity. This methodology includes a set of indicators to evaluate the “economic” and “social” components of the effectiveness, as well as to take into account the effect for both employees and employers. The article considers the identified disadvantages of employee incentive schemes in organizations of both budgetary and commercial spheres, which determines the necessity of a more in-depth and comprehensive study of the features and problems of employee incentives in organizations of any sphere. Thus, the use of the proposed methodology will make it possible to comprehensively assess the effectiveness of employee incentive schemes in both budgetary and commercial areas and on the basis of the obtained results will promote making reasonable management decisions.