MODERN TRANSFORMATIONS OF LABOR MOTIVATION SYSTEMS

Анотація

In the dynamic environment of enterprises, labor motivation systems are being transformed around the world. The transformation of labor motivation systems is influenced by a number of factors, including the speed of scientific and technological progress, the quality of its achievements and the degree of their mastery, the level of economic development of the country - current and evolving, the demographic situation and trends, the level of implementation of the concept of sustainable development, access to the international labor market, the level of social protection at the macro-, meso- and micro-levels, etc. All of the above creates both threats and opportunities for the development of the labor market and requires companies to review and improve their labor motivation systems.

One of the fastest growing sectors of the economy is the automotive industry. And those companies that have strategically identified the right priority investment area, namely digital technologies, are leading the market. The demand for electric vehicles is growing. In general, China leads the automotive market: motor vehicle production volume in 2023 amounted to 30160.97 thousand units. The United States is in second place, with an annual output of 10611.55 thousand units. At the same time, China produces more than the other countries in the top 5 of this rating [1].

China also leads the global market in sales of electric vehicles, with a share of 34%, with plans to reach 45% in 2027 [2]. Based on this argumentation, we chose a Chinese vehicle manufacturer as a base for studying the motivation system.

B Automobile Company is a publicly listed Chinese multinational manufacturing company. The company specializes in the progressive direction of the modern automotive industry - electric vehicles, namely, cars, trucks and electric buses. The company operates in international markets, selling to more than 70 countries. Exports increased 3.3 times in 2023. The company was ranked second in the world in terms of production of battery electric vehicles. B Automobile Company employs 570 thousand people [3]. 

The company under study is clearly guided by the hierarchy of needs in building its motivation system. Therefore, considerable attention is paid to material bonuses. Bonuses are paid based on the results of the year, for achieving high productivity and efficiency. To encourage staff development, bonuses are paid for skills and innovative proposals. Differentiation in remuneration of key employees is carried out in accordance with the following qualifications: senior technician, technician, senior worker, middle worker and junior worker.

The progressive achievements of B Automobile Company's labor motivation system include participation in profit sharing. The company uses a number of social incentives that are common for international companies, including health insurance, food subsidies, holiday gifts, and reimbursement of vacation expenses. The bonus system is based on the following rates: 10% of the company's annual profit is allocated to the bonus fund, which is distributed among employees in the following proportion: 60% of the fund is distributed according to the annual performance ratings of employees, 40% - according to the level of the employee's position.

B Automobile Company also uses a system of fines. This is a typical trend for private companies. The list of fine indicators for B Automobile Company is mainly divided into two categories: production line fines and management department fines. Production line fines generally range from 50 yuan to 500 yuan, and the reasons for fines include being late, leaving early, absenteeism, violating safety regulations, etc. The amount of fines imposed by management departments generally ranges from 100 yuan to 1,000 yuan. The reasons for fines include work errors, work delays, and dereliction of duty.

Labor costs at B Automobile Company average 11% of the company's total operating expenses. This is close to the recommended share of wages in expenses for manufacturing companies, namely 15-17%. Thus, B Automobile Company strives to ensure a fair distribution of income between owners and employees. The average salary of B Automobile Company's production workers is 30 yuan per hour, while the average salary of B Automobile Company's team leaders is 33% higher at 40 yuan per hour [3].

In a highly competitive labor market, working conditions are an important motivation factor. The daily working hours of B Automobile Company shall not exceed 8 hours, the working hours shall not exceed 40 hours per week, and the overtime shall not exceed 36 hours per month. The overtime situation of Automobile Company B also varies according to different positions, regions and enterprises, but overtime pay is generally paid in accordance with labor laws.

The calculation method of overtime pay is: overtime work on weekdays is paid at 150% of normal wages, overtime work on weekends is paid at 200% of normal wages, and overtime work on legal holidays is paid at 300% of normal wages [3].

A labor union of B Automobile Company is in place to protect the rights of employees. The labor union is responsible for providing benefits and services to employees, including housing, education, training, exchanges, activities, culture and sports, etc., and also pays attention to the physical and mental health and safety of employees. The union of B Automobile Company also participates in the management and decisionmaking of the company, communicates and negotiates with the company's leadership, safeguard the legitimate rights and interests of employees, and promote the harmonious development of the company.

It is worth emphasizing that digitalization, automation, and robotization have one of the most significant impacts on the transformation of labor motivation systems. In particular, digitalization improves the system of labor accounting and analysis, which allows for a better system of performance evaluation indicators and a higher level of objectivity. The introduction of digital platforms improves efficiency, speed of communication, raises employee awareness, facilitates better planning and organization of work, and improves working conditions. On the other hand, the development of digitalization raises the issue of information security [4].

The advantages of automation and robotization include creating conditions for increasing labor productivity and product quality, which frees up time from routine operations and provides more opportunities for talent development. Therefore, companies should pay more attention to implementing the achievements of Industry 4.0 and moving to Industry 5.0, which combines talent, advanced technologies and environmental safety.

To nurture their own talents, companies should invest in a system of mentoring, continuous professional development, and, if the company has sufficient financial potential, compensate all or part of the cost of higher education for employees [5]. This will help increase the level of employee loyalty to the employer. Businesses should also invest in an intrapreneurship system to stimulate innovation and entrepreneurial activity among employees within the company.

As a result, scientific and technological progress will change the structure of the labor market, requiring companies to be flexible and responsive, to adapt their labor motivation systems to new market challenges and employee demands. In a competitive market, with increased access to the international labor market, the image of an employer that values not only customers but also a team of employees who need a decent level of financial support, continuous development, mastering new technologies, acquiring multidisciplinary knowledge, support and openness, inclusiveness, respect, and work-life balance will become increasingly important for attracting employees. An effective motivation system can help companies attract and retain talents, improve employee work efficiency and satisfaction, promote corporate innovation, and thus promote corporate development, etc.