Research and motivation of consulting and auditing organizations staff in the conditions of deepening cooperation between Ukraine and Denmark
Students Name: Pauk Nataliia Ihorivna
Qualification Level: magister
Speciality: International Business
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2023-2024 н.р.
Language of Defence: англійська
Abstract: In today’s globalisation and European integration, the issue of increasing employee engagement in order to ensure competitiveness is a pressing one. One of the most complex aspects of business management is undoubtedly the personnel management system, which includes the employee motivation subsystem. The object of the study is KPMG Ukraine LLC, which belongs to the transnational corporation KPMG. The subject of the research is the study and motivation of consulting and audit staff. The purpose of the research is to study the peculiarities of staff motivation and develop recommendations for improving the motivation system of consulting and auditing companies in the context of deepening cooperation between Ukraine and Denmark, in particular for KPMG Ukraine LLC. In the course of the master’s thesis, the author reviewed scientific and educational literature on research and staff motivation, as well as the regulatory and legal support for staff motivation in the context of international activities. One of the first tasks of this study was to define the term motivation of enterprise personnel. Thus, O. Kuzmin defined motivation as a managerial activity that ensures the process of motivating oneself and other employees to perform activities aimed at achieving personal and organisational goals [1]. О. Krushelnytska and D. Melnychuk (2006) interpret the personnel of an enterprise as "the main, permanent staff of qualified employees, which is formed and changed under the influence of both internal and external factors" [2]. Further analysing the relationship between Denmark and Ukraine in the context of the topic under study, in particular the dynamics of key macroeconomic indicators, we note that exports of services accounted for 44.5% of total exports to Denmark, so it can be concluded that the Danish market reflects the demand for services from Ukrainian entrepreneurs. There is also a clear upward trend in the overall trade turnover between the two countries [3,4]. The next step was to analyse the important strategic indicators of KPMG Ukraine LLC, namely: net income, total and net profit, company assets, equity, accounts payable and total cost of production. All indicators show a positive trend in 2021. Net income increased by 3.5% in 2019 and by 12.4% in 2021. Total profit increased by 6% in 2020 and by 26.5% in 2021. Equity remained unchanged. Accounts payable were on the decline. Unlike in previous years, in 2022, these figures decreased due to military operations. The following factors may be responsible for this: Reduced sales. The most likely explanation for the decline in 2022 is the following. Sales in 2022 amounted to UAH 369,900 thousand, which is 10.8% less than in 2021. Increased expenses. The company spent UAH 246.7 thousand in 2022 compared to UAH 246.7 thousand in 2021, which is 12.5% more [5]. At the final stage, certain shortcomings in the personnel motivation system were identified as a result of the analysis of the indicators of the personnel management system of KPMG Ukraine LLC. In the period from 2018 to 2022, labour productivity per employee decreased. KPMG Ukraine LLC also suffers from staff turnover. In 2022, more than 22% of new employees were hired. This necessitates the constant involvement of training resources. To improve the company’s financial position in the future, it is necessary to take measures aimed at improving the efficiency of asset use, reducing costs and increasing profitability. The analysis resulted in three alternative measures to improve the incentive system: - Implementation of a software product to improve the staff motivation system, which will lead to an increase in equity by 13.4%. - Developing a new approach to staff evaluation with bonuses in the form of additional career opportunities (secondment agreements for employees who received the highest performance ratings on project engagements as a result of the annual evaluation) - Introduction of a new training and development department and an online training platform to improve the staff motivation system and reduce staff turnover. After analysing the proposed alternative measures, the implementation of the SAP SuccessFactors (SAP SF) software product was chosen to improve the staff motivation system [6]. A detailed description of the implementation of the measure at the enterprise to improve the level of motivation and achieve the target indicator of equity capital in the context of deepening international cooperation between Ukraine and Denmark is provided, and its economic feasibility is calculated. In order to determine the economic feasibility of the measure, the total costs incurred by the enterprise for the implementation of the measure, the total savings on fixed costs, new target values of net income, total and net profit, assets, profitability, payback period were calculated. Keywords - personnel, personnel motivation, assessment of motivation effectiveness, material and non-material motivation. List of references used 1. Kuzmin, O. and Melnyk, O. (2003). Fundamentals of management. Kyiv: Akademvydav. 2. Krushelnytska O.V. (2006). Personnel management. Kyiv. 3. BI - Customs UA. (b.d.). BI - Customs UA. https://bi.customs.gov.ua/uk/trade/. 4. Economic statistics / Foreign economic activity. (n.d.). State Statistics Service of Ukraine. http://www.ukrstat.gov.ua/. 5. KPMG Ukraine LLC (n.d.). KPMG. https://home.kpmg/ua/uk/home/about/offices/lviv.html. 6. Business Solutions | Business Applications. (b.d.). SAP. https://www.sap.com/ukraine/index.html.