Reform of employee incentive systems in Chinese industrial enterprises

UDC 316.6+005.95/.96(510)
DOI 10.20339/AM.02-26.089

Wang Peiwen, PhD student, Department of Sociology, Department of Economic Sociology and Management, Lomonosov Moscow State University, Moscow, https://orcid.org/0009-0003-4541-6405, e-mail: w15754540560@qq.com

With the transformation and modernisation of China’s economic structure and labour market relations, the incentive systems for workers in Chinese industrial enterprises have undergone profound changes. These changes are primarily manifested in the transition from uniform non-material incentives and egalitarianism characteristic of a planned economy to market-oriented, diversified and people-oriented approaches within the framework of socialism with Chinese characteristics. This article analyses the transformation of labour incentive systems in Chinese industrial enterprises under the influence of macroeconomic changes in state policy. According to research, the development of incentive systems in Chinese industrial enterprises includes three distinct stages: the period of exclusively non-material incentives, the period of dominance of material incentives, and the period of simultaneous application of material and non-material incentives. The study developed recommendations for the further development of motivation systems in industrial enterprises, which were based on three principles: people-oriented, digitalisation and sustainability. These recommendations are aimed at improving modern employee motivation systems at Chinese industrial enterprises, which will contribute to the high-quality and sustainable development of China’s industrial sector.

Keywords: industrial enterprises, modern China, labour incentives, human resources, material incentives, non-material incentives

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