REMUNERATION AND PRODUCTIVITY

The article provides an in-depth analysis of the relationship between remuneration and employee productivity within the framework of contemporary economic transformations. It explores key theoretical approaches to understanding wages not only as a monetary reward but also as a strategic tool of human resource management that directly affects the quality, motivation, and efficiency of labour. The study outlines the impact of wage level and structure on employees' engagement, initiative, loyalty, and long-term performance. Various models of wage systems are examined in detail – including hourly pay, piece-rate, mixed, and bonus-based systems – with attention to their practical applicability across different sectors and types of enterprises. Special emphasis is placed on a comprehensive approach to incentives, which integrates both financial and non-financial motivators. In this context, the article analyses how factors such as social benefits, corporate culture, working conditions, job satisfaction, and access to continuous professional and career development opportunities contribute to increased staff motivation and operational efficiency. The research underscores the growing relevance of nonmonetary forms of motivation in knowledge-intensive and innovation-driven work environments. A separate section of the article is devoted to the role of public policy in shaping effective remuneration systems. This includes the influence of state regulation of minimum wages, taxation policies affecting the wage fund, and the enforcement of labour legislation that frames the legal boundaries of employment and pay relations. The study also touches upon international trends and the experience of countries that have successfully implemented wage reforms to enhance productivity and social equity. Drawing upon the analysis, the article concludes that an effective remuneration system should be dynamic, context-sensitive, and tailored to both institutional needs and individual employee profiles. It must be built on the principles of fairness, market competitiveness, transparency, and a balanced distribution of responsibilities between employers and employees. The conceptual and practical approaches presented in the study can serve as a methodological foundation for the development of modern, performance-oriented incentive systems in both Ukrainian and international organisational settings.