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Labor economics


Effectiveness of labor economics

Target of labor economics effectiveness policy is existing motivation system, combination of pecuniary interests of workers with tasks of the company and the holding as a whole.

Estimation criteria of effectiveness of labor remuneration arrangement

  • Availability of stable workers motivation to perform plan targets on production including labor productivity
  • Efficient use of wages fund (reduction of costs for labor remuneration with the expectation of 1 rouble of produced items)
  • Achievement of wage level providing the growth of its purchasing power and competitiveness on labor market


Main directions of policy on labor efficiency

Effective use of personnel:

  • planning of labor productivity growth at the level of companies, plants and teams;
  • anticipatory growth of labor productivity against the wage growth.


Effective use of personnel costs:

  • dependence of wage amount on final company’s work results;
  • formation of economic responsibility centers.


Incomes policy directed for achievement of results required by the company:

  • formation of social and economic package of worker;
  • principle of wage differentiation;
  • establishment of wage basing on market labor cost.


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