Analysis of the material incentive impact on the employees’ performance efficiency

The deterioration in the standard of living due to the socio-economic shock in the 1990s in the modern Russia have caused the formation of the one-factor motivation model among the population. Nowadays, the main incentive to work is a wage rate, determining the trend of labor behavior and the degree of application of employee’s physical and mental abilities. The work content is presented indirectly in the motivation system. Therefore, the lack of internal motivation in the activity outcome leads to a fall in productivity and distribution of counterproductive and deviant behavior among employees. Thus, the article pursues the goal to study the influence of financial incentives on labor efficiency. On the basis of the integral index of subjective labor productivity, calculated for the 2000-2012 period, the research identifies threshold values of wages that ensure minimum and maximum labor contribution. It reveals that the 50% increase in the median wage in the given interval leads to a 25% increase in productivity.