Economics & Education (Dec 2021)
ORGANIZATION OF REMUNERATION OF LABOR OF HIRED WORKERS IN UKRAINE: SITUATION AND PROBLEMATIC ASPECTS
Abstract
The aim of the article is to highlight the state of organization of labor remuneration of employees and the existing problematic aspects of this process in Ukraine. To achieve this goal it is planned to solve, in particular, such tasks as: to consider the concept of "remuneration" as a legal and socio-economic category; to study the processes associated with the organization of employee compensation; to determine the influence of external environment factors on the organization of remuneration; to provide suggestions for improving the organization of employee compensation in the form of conclusions. The object of the study is the labor relations associated with the implementation of the right to wages. The subject of the study are processes in the field of remuneration of labor and their relationship with the requirements of Ukrainian legislation. In terms of legal assessment the concept of "remuneration" is wider than the concept of "wages", which is only a part of remuneration in the process of its organization. From the point of view of coverage of labor remuneration as a socio-economic category, it is necessary to refer to the characteristic of remuneration functions – its purpose, role, component of practical activity on coordination and realization of interests of the main subjects of relations in the process of entrepreneurial activity. Remuneration of labor, as compensation to employees for the cost of their labor force, is not an exclusive component of the employer's personnel costs. Therefore, the organization of remuneration of employees can be presented in the form of a certain complex of measures, which should be based on certain principles. The basis of effective organization of labor remuneration is an objective assessment of certain factors affecting both the labor activity of an employee and his labor behavior. Employers' approaches to remuneration depend on how an individual employee (or group) is perceived in terms of their participation in individual business processes and/or in the business as a whole (as individual elements of the business, as human resources or as human capital). Improvement of remuneration processes of employees consists in the transformation of existing industrial and social relations between the employer and employees from ensuring satisfaction of labor activity to their loyalty to the processes they perform and the organization in which they work in general, as well as the involvement of employees in the economic activity of both individual structural subdivisions of this organization and the organization as a whole. In order to achieve this goal, certain areas of remuneration organization activities and proposals for the order of development of employee remuneration systems are proposed. Among the problematic aspects of the organization of workers' compensation is a certain simplification of the approach and distancing of the "decision-making centers" both on personnel management in general and in the organization of workers' compensation, in particular, from the realities of business processes occurring against the background of depreciation (from a worldview perspective) of the executive labor process, especially in the areas of material production. Among the main directions of the external environment, the factors of which influence the state of organization of labor remuneration in Ukraine, certain problem aspects of both legislative and contractual regulation of labor remuneration, as well as improvement of the general state of the labor market of Ukraine and the level of its research on labor remuneration issues were singled out.
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