4. Vasiliy D. Ardzinov

Problems of Increase in Labor Productivity and Labor Compensation in the Sphere of Construction

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Vasiliy D. Ardzinov

Professor at the Department of Petersburg State Transport University, Doctor of Economics

Moskovskiy Ave 9, St. Petersburg, Russian Federation, 190031

The modern Russian economy focuses on increasing gross domestic product (GDP) through enhanced investment and labor productivity. There is a direct correlation between the dynamics of labor productivity and amounts of compensation received by employees. Underpaid labor cannot be productive. A cheap labor force hinders the increase of labor productivity. This study examines the problems of labor productivity growth and labor compensation in the construction industry, which is classified as a crucial industry.
Aim. The presented study aims to examine the current state and problems of labor productivity and labor compensation in construction and determine ways of increasing labor efficiency in the current stage of Russia’s economic development.
Tasks. The author tries to describe the shortcomingsof the work and salary organization in the sphere of construction and economy in general, to reveal reserves and factors of increase in labor productivity and labor compensation in the sphere of construction.
Methods. The study uses general scientific methods and the monetary (value, cost) method to assess labor productivity. Data provided by Eurostat, ILO, OECD, and national statistics agencies constitute the statistical basis of the study.
Results. Methodological foundations of labor productivity and compensation along with their indicators and evaluation methods in construction are provided. Formulas and examples of labor productivity and compensation evaluation are also presented. Reserves and factors of labor productivity growth are determined. Current labor productivity and compensation levels in Russia and developed countries are compared based on a number of sources. The comparison results show that the level of human capital needs to be increased. Low labor productivity prevents enterprises from becoming innovative. The correlation between performance, productivity standards, and employee qualifications is identified. The effect of investment growth on labor productivity and GDP dynamics is emphasized. There is a significant gap between compensation of workers and that of specialized personnel and top management, with the compensation paid to labor judged as being unfair. Ways to solve labor problems in construction are determined. The objectives of labor motivation in the management of labor resources as well as the government’s goals in solving the problems of labor and labor compensation are outlined.

Keywords: labor productivity, compensation, construction industry, labor input, productivity standard, human capital, labor problems and motivation, government regulation of social and labor relations


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