The Method of Forming an Optimal Corporate Well-Being Program to Maximize the Achievement of Employee KPI Targets

Lev S. Mazelis, Gleb V. Grenkin, Kirill I. Lavrenyuk and Andrey A. Krasko

Journal of Applied Economic Research, 2024, vol. 23, issue 4, 1124-1149

Abstract: The study was conducted within the framework of an urgent task to study the factors of human capital development of an organization that have a direct or indirect impact on the effectiveness of employees. The development process is viewed through the prism of the formation and implementation of a corporate well-being program. The aim of the work is to develop a method for forming an optimal structure for the distribution of financial resources of an organization in the context of investment areas of its corporate well-being program for the maximum possible progress towards achieving the target values of key performance indicators (KPI) of employees by developing their competencies and reducing burnout. To achieve this goal, a hypothesis is put forward about the possibility of building a tool that allows one to form an optimal structure for the distribution of investments directed towards the implementation of the well-being program to increase the efficiency of the organization's functioning based on functional dependencies constructed by the authors in previous studies, modeling channels of influence between the categories “investments”, “competencies”, “expectations”, “burnout”, and “KPI”. The developed method consists of a model representing a mathematical programming problem and a method for finding its numerical suboptimal solution. The objective function of the model is an integral indicator describing the degree of achievement of the KPIs of the organization's employees. The limitations in the model are the total amount of financial resources for the well-being program and the maximum allowable amount of investments directed towards the areas of the well-being program and employees. Optimization variables are the volume of investments in each individual employee of the company in a certain area of the well-being program at a specific time within the planning period. From a practical point of view, the proposed tool will make it possible to form an optimal investment structure within the framework of the corporate well-being program and will provide support in determining and forming a sound portfolio of program activities, the implementation of which has the maximum possible positive impact on employee productivity.

Keywords: optimization of the investment structure; well-being program; key performance indicator; burnout process; competence development (search for similar items in EconPapers)
JEL-codes: J24 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:jnjaer:v:23:y:2024:i:4:1124-1149

DOI: 10.15826/vestnik.2024.23.4.044

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