Agrarian Economy 2023 Т. 16 № 1-2: 23-31

LABOR REMUNERATION AS A TOOL FOR FORMING COMPETITIVE ADVANTAGES OF AGRICULTURAL ENTERPRISES

I. Yatsiv, Doctor of Economic Sciences, Professor
ORCID ID: 0000-0002-2370-6351
S. Yatsiv, Candidate of Economic Sciences (PhD), Associate Professor
ORCID ID: 0000-0002-5242-7845
Lviv National Environmental University

https://doi.org/10.31734/agrarecon2023.01-02.023

ANNOTATION

The principles of applying labor remuneration as a tool to create competitive advantages of an enterprise are considered in the work. It is noted that the labor remuneration system acts as an instrument in the competition between enterprises for the opportunity of hiring employees whose competences meet requirements of these enterprises. The recent growth in the share of labor costs in the structure of total production costs of Ukrainian enterprises, including agricultural enterprises, reflects the intensive competition between employers at the labor market.

The authors analyse peculiarities of formation of the level of remuneration in agricultural enterprises of Ukraine. At agricultural enterprises, the average monthly salary of full-time employees remains lower than at the enterprises of other main industries of the economy. The share of bonuses, other incentive and compensatory payments is relatively low in the structure of the wage fund of agricultural enterprises. It is expedient to increase the share of bonuses and incentive payments in the salary structure of employees engaged in animal husbandry.

It is established that there is a clearly expressed direct relationship between the level of labor remuneration and the size of agricultural enterprises. Large agricultural enterprises quite actively use wages as a tool for gaining competitive advantages. However, at small enterprises, the motivational function of remuneration is quite low. Calculations based on the data from the State Statistics Service of Ukraine show that agricultural enterprises, including small ones, are generally able to provide a certain increase in the wages of their employees.

It is noted that modernization of the wage system at agricultural enterprises should be carried out within the framework of implementation of a certain competitive strategy, taking into account the general direction of the enterprise’s competitive development, and the labor market situation. Measures to improve the remuneration system should be combined with other tools to motivate the company's employees.

KEY WORDS

agricultural enterprise, labor remuneration, competitive advantage, competitiveness, employee motivation

FULL TEXT

LINK

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