COMPENSATION POLICY IN THE MOTIVATIONAL MANAGEMENT SYSTEM: ASPECTS OF FORMATION IN THE CONTEXT OF LABOR TRANSFORMATIONS AND WAR

Abstract

The article explores the role of compensation policy as a tool of motivational management, analyzes the specifics of its formation under the influence of labor transformations and war, and provides recommendations for building a flexible and adaptive compensation system. It has been established that there are diverse scholarly approaches to understanding the fundamentals of compensation policy formation. An integrated approach, which accounts for economic, social, psychological, and managerial aspects, is recognized as the most effective for developing a balanced and functional compensation system. Building on this approach, a conceptual interpretation of compensation policy is proposed. The study identifies that transformations in the nature of work, driven by technological progress, globalization, socio-economic and organizational changes, and individual employee needs, significantly impact compensation policy. The consequences of these transformations and the war on compensation policy are analyzed through changes in the structure, priorities, and effectiveness of compensation systems. It is substantiated that the war in Ukraine has critically affected the efficacy of compensation systems, bringing to the forefront issues of employee safety and well-being, support in challenging life circumstances, and the need to ensure labor market competitiveness. The necessity of developing a flexible and adaptive compensation policy is emphasized, with core principles including adaptability, flexibility, transparency, fairness, and competitiveness. The study highlights that compensation packages must be tailored to employee needs, account for wartime conditions, and foster the attraction and retention of talented personnel. Practical recommendations and measures aimed at enhancing compensation policy within the motivational management framework in post-war Ukraine are proposed.