Non-wage remuneration systems the main component of building a competitive advantage Cover Image

Pozapłacowe systemy wynagrodzeń głównym komponentem budowania przewagi konkurencyjnej
Non-wage remuneration systems the main component of building a competitive advantage

Author(s): Mirosław Pękala
Subject(s): Economy, Micro-Economics
Published by: Polskie Towarzystwo Ekonomiczne w Zielonej Górze
Keywords: non-financial incentive systems; competitive advantage; key employees; happiness managers

Summary/Abstract: In the current business environment, managers are more willing to use solutions which include non-financial incentive systems. Unfortunately, they make a mistake. This method should be applied selectively, after analysing the needs of a given employee and coming up with a precisely adjusted incentive scheme. Success lies in granting bonuses to key employees, but financial resources allocated to rewarding the staff are thinly spread due to managers’ actions. Rewarding the personnel in this way is demotivating and does not yield expected results. Focusing on talents makes it possible to effectively motivate appropriate groups of employees, which in turn translates into measurable benefits, starting from innovation and ending with these employees’ loyalty. It is thanks to their competencies that the organization gains competitive advantage, because usually it is the key employees (rather than employees in key positions) who come up with new solutions. Professionally organized institutions appoint Happiness Managers, whose task is to manage non-financial incentive systems. To gain competitive advantage, it is necessary to use incentive tools and observe general principles of staff management. Moreover, in this way we can gain measurable legal and tax benefits. The aim of this article is to present a solution thanks to which there is a strong probability that an organisation will gain competitive advantage.

  • Issue Year: 8/2021
  • Issue No: 14
  • Page Range: 92-109
  • Page Count: 18
  • Language: Polish
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