IMPROVING LABOR PRODUCTIVITY THROUGH THEENHANCEMENT OF INCENTIVE MECHANISMS IN THEREMUNERATION SYSTEM

Abstract

This article examines the theoretical and practical aspects of improving labor productivity through the enhancement of incentive mechanisms within the remuneration system. It analyzes modern approaches to both financial and non-financial employee incentives, performance evaluation criteria, and the advantages of KPI- and competency-based compensation systems. Furthermore, the study develops scientifically grounded recommendations aimed at increasing labor productivity, strengthening employee motivation, and improving the economic efficiency of remuneration systems in enterprises.