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Improving the system of labor incentives and stimulation in oil companies

Author

Listed:
  • Vera Vladimirovna Plenkina

    (Tyumen Industrial University, Russian Federation)

  • Irina Vladimirovna Osinovskaya

    (Tyumen Industrial University, Russian Federation)

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.

Suggested Citation

  • Vera Vladimirovna Plenkina & Irina Vladimirovna Osinovskaya, 2018. "Improving the system of labor incentives and stimulation in oil companies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(2), pages 912-926, December.
    • Handle: RePEc:ssi:jouesi:v:6:y:2018:i:2:p:912-926
    DOI: 10.9770/jesi.2018.6.2(29)
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    References listed on IDEAS

    as
    1. Alexander Borisov & Diana Narozhnaia & Elena Tarando & Alexey Vorontsov & Nikolay Pruel & Olga Nikiforova, 2018. "Destructive motivation of personnel: a case study of Russian commercial companies," Post-Print hal-02121183, HAL.
    2. Alexander Borisov & Diana Narozhnaia & Elena Tarando & Alexey Vorontsov & Nikolay Pruel & Olga Nikiforova, 2018. "Destructive motivation of personnel: a case study of Russian commercial companies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(1), pages 253-267, September.
    3. Vera Vladimirovna Plenkina & Irina Andronova & Elena Deberdieva & Olga Lenkova & Irina Vladimirovna Osinovskaya, 2018. "Specifics of strategic managerial decisions-making in Russian oil companies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(4), pages 858-874, June.
    4. Vera Plenkina & Irina Andronova & Elena Deberdieva & Olga Lenkova & Irina Osinovskaya, 2018. "Specifics of strategic managerial decisions-making in Russian oil companies," Post-Print hal-01858350, HAL.
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    Cited by:

    1. Arslan Kulanov & Assiya Issakhova & Olga Koshkina & Parida Issakhova & Alma Karshalova, 2020. "Venture Financing and the Fuel and Energy Complex: Investing in Alternative Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 531-538.
    2. Yelena Petrenko & Nikita Stolyarov, 2019. "Features of the management of international projects, taking into account intercultural differences of the partners," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 2037-2051, June.
    3. Yana S. Matkovskaya & Elena Vechkinzova & Yelena Petrenko & Larissa Steblyakova, 2021. "Problems of Innovative Development of Oil Companies: Actual State, Forecast and Directions for Overcoming the Prolonged Innovation Pause," Energies, MDPI, vol. 14(4), pages 1-24, February.
    4. Mangirdas Morkunas & Gintaras Cernius & Gintare Giriuniene, 2019. "Assessing Business Risks of Natural Gas Trading Companies: Evidence from GET Baltic," Energies, MDPI, vol. 12(14), pages 1-14, July.

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    More about this item

    Keywords

    incentives; grade; oil company; method; regrading; personnel;
    All these keywords.

    JEL classification:

    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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