Market Conditions
The transformation of market conditions significantly changed the requirements for financial incentives for enterprise personnel. Continuing stratification of the population by income level, social and property status. Existing models of material incentives for staff no longer able to meet the demands of modern industrial enterprises, because such models do not involve reproduction and only partially involved stimulating function of wages, there is no relationship between material incentives and staff performance of his work, as well as the final results of production. New economic conditions of enterprises and change the mentality of human factors require new approaches to material incentives for staff. In this regard, necessary departure from the traditional scale performance incentives and a shift to evidence-based modeling of such indicators, which will allow to organize the material incentives.
Organization wage is one of the main mechanisms of operation of the business and economic environment supports the organization of material incentives for staff. Research organizations pay, starting with the Adam Smith Institute, argue that each economic system brings its own requirements concerning the organization of material incentives for personnel of enterprises, and these requirements meet the level of economic development. The modern concept of material motivation and incentives should be based on the following principles: first, the transition to a market economy can not avoid the devastation of the national wealth of the state, so this fact will leave the state without a launch pad for social and economic development, and secondly, the level of minimum wages should be much higher than the subsistence minimum, so as not to lose their reproductive function and stimulating, and thirdly, the balance between labor and capital needed for the harmonious development of society, and fourthly, the presence of social justice in the distribution of the national fund wealth of the state will give a motivational push to increase productivity.