APPROACHES TO THE FORMATION OF A COMPENSATION PACKAGE

Authors

  • N. V. Ahramakova Simon Kuznets Kharkiv National University of Economics, Kharkiv
  • S. Y. Honcharova Simon Kuznets Kharkiv National University of Economics, Kharkiv
  • O. O. Zatieishchykova Simon Kuznets Kharkiv National University of Economics, Kharkiv

Keywords:

compensation package, benefits package, comprehensive, basic, differentiated, storage, cafeteria packages.

Abstract

The paper analyzes existing approaches to the formation of thecompensation package, each filled with its own content. Consideredcharacteristic features and species composition of the compensationpackage as comprehensive, basic, differentiated, storage, сafeteria.So, at a basic campaign, the authors proposed to allocate thefollowing types of compensation package, «bronze» package «silver»package and «gold» package. «Bronze» compensation packageincludes the items wages and social guarantees enshrined in law.Additional benefits, services and benefits are not expected.«Silver» compensation package includes a «bronze» additionalincentive payments, non-financial rewards and the minimum numberof social benefits and services that may be offered by the companywith its financial resources. «Gold» compensation package includes agreater variety of structural components of the social package, thesize of which each company defines for themselves. With adifferentiated approach depending on the category of staff setdifferent components of the compensation package. Cafeteria packageprovides the employee himself may participate in the formation ofsuch a package, defining a set of services that the employee wouldlike to use. However, it should be noted that the compensationpackage components such as the size of the main and additional wages the worker himself can not choose, because it determines the employer in accordance with the results obtained from the employee works. Saving approach to the formation of a compensation package would increase the content of the package by various indicators and their weights in the overall result: education, experience, mental and physical effort, initiative and self-reliance, responsibility for the work of others, rational use of time, interpersonal relationships, attitudes to work, self-organizational capabilities. A comprehensive approach includes the individual components of the previous four. That is all provided to employees a minimum set of services, and then, depending on the position, length of service and other criteria determined set of additional services that can be part of individual compensation package. Considered technology development and implementation of compensation package available for use by enterprises of all forms of ownership, economic activities and size.

Author Biographies

N. V. Ahramakova, Simon Kuznets Kharkiv National University of Economics, Kharkiv

Candidate of Economics, Associate Professor

S. Y. Honcharova, Simon Kuznets Kharkiv National University of Economics, Kharkiv

Candidate of Economics, Associate Professor

O. O. Zatieishchykova, Simon Kuznets Kharkiv National University of Economics, Kharkiv

Candidate of Economics, Associate Professor

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