Shylo L., Candidate of Economic Sciences, Associate Professor of Department of Accounting аnd Taxation, Dnipropetrovsk National University of Railway Transport named after Academician, Dnipro, Ukraine

ORCID ID: 0000-0003-3235-1377
e-mail: 1954shilo@gmail.com

Kirzha Krystyna, Lecturer of Department of Accounting, Dnipro College of Railway Transport and Transportation Infrastructure, Dnipro, Ukraine

e-mail: oblikdiit@gmail.com

Piatak Yuliia, Master’s degree in Accounting аnd Taxation, Dnipropetrovsk National University of Railway Transport named after Academician, Dnipro, Ukraine

e-mail: yulya1998888@gmail.com

Improving the Remuneration System on the Railway under the Conditions of Corporatisation

Abstract. Introduction. The process of corporatization in the railway industry requires the use of modern methods and tools to stimulate staff labor.

Purpose. The purpose of the study is to analyze the modern remuneration systems and methods of motivation, searching for a system that optimally combines the interests of workers and the management of railway enterprises under conditions of corporatization.

Results. The analysis of modern remuneration systems was carried out to find a combination that will correspond to the corporate culture and strategy of PLC “Ukrainian Railways” and all its functions. Transition of the organization to a corporate culture implies direct participation of employees in key processes of company management. Under the conditions of corporatization, a flexible system of comparison of remuneration with its results is necessary. The remuneration system should be understandable for all staff, so that he/she sees a direct link between the productivity of his/her work and the salaries received. At present, the organization of remuneration based on the implementation of the grade system has become widespread in the world. Since the key indicators of the efficiency take the main part when conducting the grading system, the KPI (Key Performance Indicator) system can be used in companies for the effective development of an organization and the transparent remuneration. Under modern conditions, the grade system and the KPI are the two best payroll systems. To ensure that both constant and variable components of the salary are unified according to a single principle and brought into conformity, a parallel application of the grade system and the KPI is advisable at railway transport enterprises. In a pair, they completely unify the accruals of both components of the salary (constant and variable). This combination can optimally reflect the direction of the corporate culture, informing employees about the strategic development of the enterprise and areas that provide the necessary results.

Conclusions. Based on the study of scientific sources and on the basis of the modern remuneration systems analysis used by leading companies, the ways of their implementation at railway transport enterprises have been proposed. The implementation of the proposed approaches will create an effective remuneration system and personnel motivation, which allows increasing the interest of railway transport personnel in activity consumption quantity and quality.

Keywords: railway transport reform; corporatization of railway; remuneration system; motivation; grading; universal system of key performance indicators.

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