The article examines how pay levels are related to employee motivation and productivity by comparing classical motivational models with empirical evidence from different countries and industries. Combining classical motivation theories and economic models with a review of contemporary empirical research, the author identifies key factors that determine the effectiveness of pay systems in different industries and countries. The results confirm that wages remain an important incentive, but their influence increases significantly when combined with intangible factors (corporate culture, professional development opportunities, flexible working conditions). Based on the data obtained, the author offers recommendations for the development of flexible, adaptive and transparent remuneration systems that take into account individual and industry specifics. The conclusions of the article will be useful for HR managers, economists and researchers dealing with the issues of increasing motivation and productivity of personnel.
Danila V. Domchenkov (Mon,) studied this question.