Svetlana OgolikhinaPublished in:
Russian Journal of Labor Economics
– Volume 3, Number 2 (April-June, 2016)

JEL classification: J24, J30, M52

Keywords: enterprises, Iproshear plan, labor motivation, labor productivity, labor remuneration system, labor stimulation, regular labor force, Rucker plan, Scanlon plan


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Abstract:

The author discusses the relevant problem of labor motivation at Russian enterprises. Disadvantages of the domestic labor stimulation systems have been identified. The author has also performed a comparative analysis of foreign labor remuneration systems and studied the possibility of using thereof at Russian enterprises. Certain positive effects of the introduction of Western labor stimulation systems have been pointed out.

Highlights:

► in world practice, modern systems in the area of labor stimulation have been successfully introduced a long time ago in many Western countries; still, most Russian enterprises continue to use habitual payment and labor stimulation systems
► Scanlon plan is based on the distribution of savings from wage costs that have been received in result of labor productivity increase between the employees and the enterprise as per one employee
► Rucker plan is based on paying bonuses to the employees in result of net output growth as per one $ of salary
► Iproshear plan was designed by Mitchell Fein in 1974 in order to simplify calculation of the indices that presuppose identification of saving of hours as per manufacturing of a product unit
► in order to apply the systems of profit sharing there have to be strong partnership between labor and capital at an enterprise
► absence of state regulation of additional stimulation of the employees is a serious flaw in Russian legislation; this flaw considerable complicates the development of private companies in the Russian Federation
► time-bonus system is to be based on a differentiated approach and take into account labor input of each employee
► Western systems of labor stimulation and remuneration may be used at Russian enterprises where employees can influence on final results indirectly and actively participate in the development of managerial decisions

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