The employee motivation by key performance indicators

Abstract

The employee motivation is one of those issues, to the solution of which much attention is paid in both domestic and world practice. Today, the majority of modern company leaders use monetary remuneration to motivate their employees: raise salaries, pay premiums, grant privileges, etc. As practice shows, mostly, these methods are not effective in motivating employees. Therefore, it would be appropriate to use the experience of foreign companies for the formation of a labor motivation system at a company. The application of effective employee motivation models allows domestic enterprises to create highly productive human resources, working for the enterprise’s benefit. The article deals with one of the motivation systems using key performance indicator. The basic requirements for a system of key performance indicators motivation, their classification, stages of construction of the proposed motivation system are defined, the key advantages of using it and the method of calculating employee bonuses through KPI (Key Performance Indicators).