Trade and service personnel remuneration in the company’s incentive system

Economic Annals-ХХI: Volume 191, Issue 7-8(1), Pages: 127-137

Citation information:
Blyznyuk, T., Maistrenko, O., Kinas, I., & Pererva, I.  (2021). Trade and service personnel remuneration in the company’s incentive system. Economic Annals-XXI, 191(7-8(1)), 127-137. doi: https://doi.org/10.21003/ea.V191-10


Tetyana Blyznyuk
D.Sc. (Economics),
Professor,
Simon Kuznets Kharkiv National University of Economics
9-a Nauky Ave, Kharkiv, 61100, Ukraine
blyznyuk.tetyana@gmail.com
ORCID ID: https://orcid.org/0000-0002-8291-4150

Olga Maistrenko
PhD (Economics),
Associate Professor,
Simon Kuznets Kharkiv National University of Economics
9-a Nauky Ave, Kharkiv, 61100, Ukraine
mai.olga88@gmail.com
ORCID ID: https://orcid.org/0000-0002-8007-3191

Iryna Kinas
PhD (Economics),
Associate Professor,
Simon Kuznets Kharkiv National University of Economics
9-a Nauky Ave, Kharkiv, 61100, Ukraine
irynakinas@hneu.net
ORCID ID: https://orcid.org/0000-0002-1790-3746

Ivanna Pererva
PhD (Economics),
Associate Professor,
Simon Kuznets Kharkiv National University of Economics
9-a Nauky Ave, Kharkiv, 61100, Ukraine
imatsikanych@gmail.com
ORCID ID: https://orcid.org/0000-0002-8119-7022

Trade and service personnel remuneration in the company’s incentive system

Abstract. At present, most companies all over the world, including Ukraine, are experiencing negative consequences of the pandemic. Staff efficiency has decreased, so companies have experienced a decline in business productivity in general. The system of labor incentives should encourage staff to work more efficiently by introduction of an additional remuneration system based on performance-related payment system. According to the European knowledge, commerce is one of the sectors where the introduction of this additional remuneration system is common and effective. The purpose of this study is to develop and substantiate practical recommendations to improve the system of additional remuneration for sales and service personnel of the company from Ukrainian commerce sector, which would increase their efficiency in the company. The study identified the main components of the system of incentives and the main forms of stimulating work for the company’s staff. It is substantiated the main stages of the improvement sequence of the company’s staff remuneration system as a component of the personnel incentive system. The system of additional remuneration of trade and service personnel of the company from Ukrainian commerce sector was developed and substantiated. It was determined that the basis of an additional remuneration system of trade and service personnel was introduction of a percentage of total sales, which exceeded the established volume, as the main priority. The five-factor model for assessing the productivity level of sales and service personnel in the company from Ukrainian commerce sector built. By this model, effectiveness of introduction of an additional remuneration system for trade and service personnel of the company from Ukrainian commerce sector proved and evaluated. Further, authors will work out practical recommendations for the development the basic salary system for sales and service personnel of the company from Ukrainian commerce sector.

Keywords: Labor Incentives System; System of Additional Remuneration; Personnel Remuneration System; Pay System; Salary; Trade and Service Personnel; Performance-Based Incentive Payment System; Commerce Sector

JEL Classification: J53; М52

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V191-10

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Received 4.03.2021
Received in revised form 29.04.2021
Accepted 3.05.2021
Available online 10.08.2021