SOFT INCENTIVES IN THE HUMAN RESOURCES SYSTEM: FOREIGN EXPERIENCE AND UKRAINIAN REALITIES

Abstract

The article clarifies the concept of “motivation”, considers the main tools of intangible employee motivation in the modern human resources management system, including public recognition of employee merit, increasing personal responsibility, free choice of methods of performing tasks, humanization of labor, development of industrial democracy, team awareness about organizational prospects and processes, improving of work conditions, creation of recreation areas and increasing the comfort of a workplace and others. The authors study the place of intangible motivation in the human resources management system, argue that in contrast to tangible motivation, intangible motivation is aimed at increasing the level of involvement and loyalty of employees, affects the deeper aspects of human psychology and behavior in a workplace, has a longer motivating effect, saves resources of the organization and increases the attractiveness of the organization’s brand as an employer. In addition, an effective system of motivation in the organization allows employer to attract and retain valuable employees, increases employee productivity, forms the organizational culture and the system of values in the team, improves the moral and psychological climate in the organization, and strengthens team stability and team spirit. The article also gives examples of the introduction of intangible motivation elements by successful foreign companies (such as independent choice of work schedule, remote work, providing individual and corporate bonuses), and analyzes the possibilities of their implementation in domestic enterprises. According to the authors, the introduction of a variety of intangible motivation tools in Ukrainian organizations is constrained by limited resources, excessive conservatism, and unwillingness to change on the part of management and employees. However, in the era of information revolution and market competition, it is impossible to stay away from global trends in human resource management, and therefore domestic employers must be ready for innovation and positive change.