S. V. Savina. Weakening of the Reproductive and Stimulating Functions of Remuneration in the Regions of the Russian Federation

S. V. Savina. Weakening of the Reproductive and Stimulating Functions of Remuneration in the Regions of the Russian Federation

Key words: region; remuniration; reproductive function; purchasing power; average wage; real wage; stimulating function

Introduction: due to the fact that the mechanism of the remuneration model set-up at the enterprises of Russia’s regions is in the stage of transformation, the methodological approaches to formation of a system of incentive and remuneration mechanisms are of great interest. Therefore, research is currently underway to develop and improve the forms and methods stimulating the work of an employee. This determines the relevance of research in the field of reforming the remuneration system and of the subsequent development of the main directions in the field of full-fledged implementation of reproductive and stimulating functions of remuneration.

Materials and Methods: data from various statistical compilations were used in the study. As a methodological basis of the research, a comprehensive approach to the study of the issues under consideration was used in the context of the dialectical approach to the results of the study formulated in the form of conclusions and proposed recommendations that have a positive impact on the process of cognition and transformation in the field of improvement and development of the mechanism of remuneration.

Results: the problems that occur in the field of remuneration at present concerning the implementation of the two basic functions of remuneration were identified: the reproductive and the stimulating ones, which are an obstacle to improving the efficiency and effectiveness of workers’ labor. The author suggests a list of directions in the field of increasing the reproductive function of remuneration, strengthening its stimulating role leading to more productive labor of workers and improvement of people’s working life quality.

Discussion and Conclusions: sustainable economic development is inextricably linked to the development of production. Solution of the stated problem depends on the level of interest of employees in high-quality and high-performance labor on the basis of the existence of a strong, direct and strongly supported relationship between income and the employee’s actual labor contribution. The full-fledged implementation of the reproductive and stimulating functions of remuneration is a fundamental factor that positively affects the quality of workers’ labor. Strengthening the effectiveness of these functions is impossible without solving the problems that occur in the field of remuneration at the moment, which implies their in-depth study and the development of the main directions related to their solutions. Suggestions on strengthening the role of the reproductive and stimulating functions of remuneration and their practical implementation may be used when forming the mechanism of the remuneration system set-up and reform in an enterprise, when improving the key areas of remuneration setting.

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About the author:

Svetlana V. Savina, Candidate of Economic Sciences, Associate Professor at the Department of Construction Materials and Technologies, National Research Mordovia State University (68 Bolshevistskaya St., Saransk, 430005, Russia) (е-mail: savinasv2017@mail.ru).

For citation: Savina S.V. Weakening of the Reproductive and Stimula-ting Functions of Remuneration in the Regions of the Russian Federation. REGIONOLOGIYA = REGIONOLOGY. 2018; 1(26):68—89. DOI: 10.15507/2413-1407.102.026.201801.68-89

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