Effective Contract With The He ad Of Educational Organization: Professional Comment

Present-day social sphere of the Russian Federation employs over 14.4 million workers; the majority (about 5.2 mln) are occupied in the educational sphere and another 3.9 mln — in the spheres of public health and social services. Remuneration of labor system for those occupied in state federal institutions is established based on the Decree of the Government of the Russian Federation №583 as of 5th August of 2008. Introduction of the new system has had a positive affect on the dynamics in government (municipal) employees’ compensation. Still, as the evidence shows, even the new system of remuneration fails to solve the problem of performance-contingent motivation for all categories of institutions. Ii is observed that in many cases performance indicators and criteria are not properly developed and are applied as a mere formality. In many public institutions incentive rewards are paid as a guaranteed part of compensation without any relation to the results of work. This is largely due to the extremely low tariff rates at the public institutions and their low competitiveness at local labor markets. As a result public institutions have to reward workers regardless of their performance results to retain manpower. The author concludes that remuneration of labor systems should be adapted to new conditions, aimed at the growth of appropriate industries, increase of services quality and maintain contingency between the public servants’ performance results and their compensation.