Analysis of the remuneration of the organization`s personnel based on key performance indicators

  • Liliya A. Vostrikova Voronezh State University
  • Irina V. Panina Voronezh State University
Keywords: remuneration, key performance indicators, management by goals, efficiency, economy

Abstract

Purpose: to develop methodological recommendations for the analysis of the effectiveness of the remuneration of the company's personnel, based on key performance indicators (KPI), using a single integral indicator. Discussion: in modern management, the concept of management is actively applied according to the goals set at all intra-organizational levels based on the general strategic goals of the company. These goals are specified for the responsible persons in the form of measurable KPIs. One of the main tools for achieving KPI is the motivation of staff, including through their remuneration. For remuneration to be effective, it is necessary to choose the right KPIs and analyze and evaluate their implementation. As a rule, the analysis involves a binary assessment of the compliance of the actual indicators with the established KPIs. The results of such an analysis are not clear enough, they do not allow you to compare the performance of different segments of the company with different sets of KPIs. Results: methodological recommendations for the analysis and evaluation of the effectiveness of the remuneration of the company's personnel based on the KPI, using a single integral indicator – the total KPI performance ratio, are proposed. This analysis provides a general visual resultan assessment of the degree of implementation of all KPIs in a single indicator, the impact of resource use on remuneration on its value, and allows you to compare the effectiveness of rewards in different segments of the company with different KPIs.

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Published
2021-08-27
How to Cite
Vostrikova, L. A., & Panina, I. V. (2021). Analysis of the remuneration of the organization`s personnel based on key performance indicators. Modern Economics: Problems and Solutions, 8, 141-150. https://doi.org/10.17308/meps.2021.8/2661
Section
Analysis