First of all, it is noteworthy that the reduction in output per worker in terms of revenues and profits, return on the salary paid and the ratio of the labour productivity growth rate to the average salary growth rate, just as the increase in the salary pool share in cost were dramatic and significant and occurred in 1Q 2020 only, whereas the previous period was described by a positive labour productivity trend at APB LLC during the last 3 years. Such drastic and significant fluctuations in labour and salary indicators largely resulted from the company’s restructuring, its business diversification and the headcount increase from 9 to 40 staff employees. Thus, a significant part of recommendations as to, and opportunities of, the labour system and the salary policy improvement in APB LLC is based on the assumption that a majority of adverse changes in some indicators were largely triggered by the above factors. However, a series of efforts that will help improve the ways of the employees’ salary package generation and enhance the salary policy efficiency is proposed.
First of all, the earlier mentioned problem of poor quarterly objective achievement by the Land Relations business unit employees and low fulfilment of the key performance indicators by the Project Office business unit employees necessitates the improvements in the ways of the salary package generation for this group of employees. In particular, managers of these business units need to audit the target setting and assessment system for these employees, and both the in-house resources and external auditors, consulting companies that specialize in human resources and salary package management, can be involved in the implementation of these efforts.
These efforts include the improvement of the tools of the company’s strategic goal cascading into business unit goals and those of individual employees. For instance, it is necessary to revise the specific weight of the business unit in implementation of the objectives to achieve the planned revenues and profits, to conduct with managers of all business units and APB LLC director the conformity assessment of the objectives set to the business units to SMART principles; in particular, special attention should be paid to the achievability parameters and time frames for the goals. Moreover, it is necessary to review the goals the business unit employees face, to make sure the achievement of the goals set to the employees leads to the achievement of those of the business unit and strategic goals.