Formation of Key Performance Indicators in Staff Incentive Systems of Processing Industry Enterprises

Abstract

The issue of stimulating the personnel of the enterprise refers to the fact that they pay much attention both in the domestic and in the world practice. Stimulation of personnel is one of the methods of increasing labor productivity, as well as one of the methods for increasing the effectiveness of the enterprise. This stimulus should be given great attention. The choice of a specific method for stimulating staff depends on many factors. To date, the most effective method of encouraging employees is an incentive system based on key performance indicators. Key performance indicators direct workers to achieve short-term and long-term goals, but also to increase personal contribution to the activities of the whole enterprise. The system of key performance indicators is a powerful tool for regulating the activities of an enterprise, so you need to carefully consider its implementation and implementation in practice. The paper considered the basic notions and stages of implementing the system of key performance indicators in the organization, as well as it outlines the principles for implementing this system. The main requirements to the system of key indicators of the effectiveness of employee incentives are identified, methods for calculating employee bonuses using key indicators are given.