The objective of this article is to summarize theoretical provisions and develop practical recommendations for improving staff motivation in agricultural businesses to insure financial and economic security (including cooperative farms). Methodology. The following scientific methods and techniques were used in addressing this objective: analysis and synthesis (to study the essence of theoretical categories of “motivation” and “competency profile”), the calculation and constructive method (to define work performance of agricultural business employees); and the monographic method (to summarize the conclusions). Practical Implications. The article states that the main management objective of agricultural businesses at their current development stage is to motivate employees to work effectively in order to organize high-quality and efficient work and insure their financial and economic security. Existing personnel motivation models and systems do not allow for a complete use of all the possibilities of labor resources of agricultural businesses and need to be reviewed. The main issue in the implementation of motivational mechanisms by agricultural businesses is low wages and a lack of interest of labor resources in achieving high performance both in production and product sale. Personnel marketing is a special type of management activity aimed at the most effective planning of staffing needs, provision of staffing, development and use of staff, and employee motivation in order to achieve business goals and meet staffing needs. This article suggests using the following algorithm in agricultural businesses (including cooperative farms) to develop a staff motivation system based on the marketing approach: studying the human resources of the business and identifying qualitative and quantitative staff needs; conducting a personnel audit; monitoring the labor market; streamlining the job profile; identifying competitors in the labor market; researching ways to attract staff; implementing professional development programs etc. The article furthermore considers the use of the KPI method, which will allow applying a differentiated approach to wages and identify employees with the lowest efficiency and performance, and optimize the number of labor resources of agricultural businesses, and suggests their use by such businesses. For agricultural businesses, the use of 3–7 KPIs per employee is suggested. The article offers indicators that demonstrate personal performance. The article uses the KPI methodology together with the employee’s competency profile. The combination of KPIs and the competency profile can provide an opportunity to assess the quantity and quality of work of each employee. A competency profile is defined as follows: a list of characteristics that correspond to each position in an agricultural business that comprises key and professional competencies. A five-point scale has been developed to assess the competencies of labor resources. Value/originality. The combination of a KPI system with an assessment of the competency of an individual employee and the marketing approach will ensure transparency in using labor resource stimulation mechanisms; form a new high-quality motivation system in which the end result expressed as the salary amount will depend on the quantity-quality labor force performance indicators; and allow for the differentiation of bonuses for each individual employee depending on the quality of performance of his/her job responsibilities and changes in his/her labor competencies.
How to Cite
labor resources, agricultural businesses, financial and economic security, cooperative farms, staff motivation, marketing staff
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