Developing a staff motivation system for construction companies: Algorithms for encouraging high productivity

Abstract

This study aimed to provide practical recommendations for enhancing staff productivity in construction companies. The activities of Ukrainian construction companies, specifically Limited Liability Company “PC Regional Construction Company”, Limited Liability Company “Interbud”, and Private Joint-Stock Company Holding Company “Kyivmiskbud”, were analysed, along with the algorithm for improving motivation within these companies. A comparative analysis of motivation systems in Ukraine and internationally, using Germany, the United Kingdom, and the USA as examples, was conducted. Based on the findings, a mechanism for increasing staff motivation in Ukrainian construction companies was developed. Motivation was identified as a key factor in improving labour productivity. In particular, the use of a combination of material and non-material incentives proved effective in enhancing work efficiency. Company performance confirmed the effectiveness of strategies that contributed to increased productivity and employee loyalty. Limited Liability Company “PC Regional Construction Company” achieved a 15% increase in labour productivity through a bonus system and improved working conditions. At Limited Liability Company “Interbud”, employee engagement increased to 80%, while Private Joint-Stock Company Holding Company “Kyivmiskbud” achieved a 70% rise in employee loyalty through non-material incentives. A crucial aspect was the introduction of flexible bonus systems that considered both individual and collective achievements. The study confirmed that professional growth, training, and employee development contributed not only to skill enhancement but also to increased company loyalty. Non-material incentives, such as recognition of achievements and team-building activities, significantly improved workplace morale and strengthened team cohesion. The implementation of feedback systems and employee participation in decision-making fostered closer ties between management and staff, positively impacting company performance. The practical significance of this study lay in optimising motivational strategies to enhance productivity and employee loyalty in construction companies. These improvements facilitate high performance, reduce staff turnover, and foster an effective working environment.