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Identification of the Labor Payment Status and Opportunities for the Development of Fair Labor Compensation in the Industrial Sector of Ukraine

Journal: Quarterly Scientific Journal "Economic Herald of the Donbas" (Vol.72, No. 1)

Publication Date:

Authors : ; ;

Page : 149-156

Keywords : industry; labor payment; minimum wage; fair labor compensation; state identification; types of economic activities; taxonomic analysis; matrix; rating assessment;

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Abstract

Ensuring the sustainable development of industrial enterprises depends, to a large extent, on motivating the personnel to achieve set goals, which is primarily shaped by a factor such as «labor payment». This article proposes an approach to identify the status of labor payment and assess its dynamics by types of economic activities in the industry of Ukraine from the perspective of ensuring fair labor compensation. The use of taxonomic analysis as an identification tool allowed us to: establish the types of economic activities in the Ukrainian industry with the best and worst labor payment status; identify key changes in the field of labor compensation (both by specific types of economic activities and overall in the industry); group types of economic activities in the industry by the level of development and the manifestation of fair labor compensation characteristics. Based on the summary of the analysis results, a deterioration in the state of labor payment has been identified across most types of economic activities in the industrial sector, allowing it to be classified as unsatisfactory. The main obstacles to ensuring a fair level of labor compensation have been identified: low wage levels (below the country's average, particularly in 2021); inefficient allocation of labor payment expenses; and the presence of wage arrears. Directions for reforming and improving the labor payment policy in Ukraine's industry have been determined, both at the state level and at the level of individual enterprises.

Last modified: 2024-01-20 23:55:23