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Improving the system of labor incentives and stimulation in oil companies

Vera Vladimirovna Plenkina () and Irina Vladimirovna Osinovskaya ()
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Vera Vladimirovna Plenkina: Tyumen Industrial University, Russian Federation
Irina Vladimirovna Osinovskaya: Tyumen Industrial University, Russian Federation

Entrepreneurship and Sustainability Issues, 2018, vol. 6, issue 2, 912-926

Abstract: The article addresses the issues related to improving the efficiency of the incentives’ system at the level of oil-producing structures through the improvement of its financial component. It refers to improving the grading system, which is a fairly semipolar remuneration plan in oil companies. The problem of reaching the maximum wage level for employees in the grading system and reducing its incentive function has been considered in its entirety. The development of an efficient, transparent system of personnel incentives is a relevant problem for many companies. The paper reveals the causes of this problem and possible ways to solve it, and also considers the technology of the grading system formation at an oil-producing enterprise. Expansion of grade levels is one of the priority areas for improving the grading system. The pay range is justified with the purpose of ensuring a competitive pay level for different groups of positions. The need for regrading – the revision of the system of ten-tier wage structure of grades to a larger scale, with a large number of pay ranges – is confirmed by the estimated efficiency of the measure. Besides, the paper considers the expediency of shifting oil field employees to grading system payments.

Keywords: incentives; grade; oil company; method; regrading; personnel (search for similar items in EconPapers)
JEL-codes: M50 M54 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:ssi:jouesi:v:6:y:2018:i:2:p:912-926