Assessment of the efficiency of the ratio of payment and use of the workforce

Litvinova Vіktorііа
PhD (Economics), Associate Professor, Department of Business Economics and Business Organization, Odessa National University of Economics, Odessa, E-mail: litvinova_1977@ukr.net, ORCID ID: https://orcid.org/0000-0003-3998-904X

Kobylinskyi Alexei
2nd year master's student, Odessa National University of Economics, Odesa, E-mail: alexey.petrosyan23@gmail.com, ORCID ID: https://orcid.org/0000-0002-7130-6440

Cite this article:

Litvinova V., Kobylinskyi A. (2022) Assessment of the efficiency of the ratio of payment and use of the workforce. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Otsinka efektyvnosti spivvidnoshennia oplaty pratsi ta vykorystannia robochoi syly; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (300-301), pp. 104-109.

Abstract

The article analyzes the importance of the wage factor in increasing labor productivity. It is found that among the cost indicators, labor productivity can be calculated using gross (net) value-added, which reflects the efficiency of the use of labor, material, production and financial resources. The author substantiates the need to track general trends in changes in labor remuneration and labor productivity, their interrelation and efficiency. The author examines the relationship between the rates of labor remuneration and productivity by calculating the labor elasticity coefficient, which is the inverse of the rate of labor productivity outpacing labor remuneration. The elasticity coefficient shows how much the average wage (labor costs) changes with a one percentage point change in labor productivity. Three main models that determine the ratio of wage and labor productivity growth rates are allocated, and the expediency of using each model under certain circumstances is substantiated. It is proposed to study the impact of individual parts of the wage fund on the coefficient of wage elasticity based on the author's additivemultiplicative model. The proposed model makes it possible to assess the impact of individual factors on the resulting indicator using various techniques of factor analysis, which in turn significantly expands the scope of the model. Such an analysis will improve the efficiency of the organization of remuneration at the enterprise and ensure the balance of the payroll fund with a focus on productivity.

Keywords

remuneration, motivation, salary, labor productivity, business, enterprise, labor intensiry of production, average number of employees, added value, growth rate, dynamics, labor remunerarion fund, advance rate, elasticity rate.

JEL classification: М540, J310, C510; DOI: 10.32680/2409-9260-2022-11-12-300-301-104-109

UD classification: 331.2

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