Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Development of a Methodology for Assessing Economic Security of Industrial Enterprise Employees: Experience of Ukraine

Author(s): Ievgeniia Mishchuk, Alla Hrechko, Nadiia Skliar, Natalia Yastremska, Pavlo Kamynskyi

The article presents the developed methodology of assessing industrial enterprise employees’ economic security. The proposed methodology is based on such key factors as desired (minimum necessary) for employee’s amounts of social payments and outstanding expenditures of the enterprise. These expenditures are differences between desired and actual values of employees’ economic security indicators. Wages, expenditures for labour protection, sociocultural, sport and recreation programmes and employee training are determined as indicators of employees’ economic security. The proposed methodology has been tested at industrial enterprises of Ukraine. The study determines that amounts of wages desired by employees of Ukrainian industrial enterprises and payments for their training should be at the level of foreign business practices. The minimum payments necessary for labour protection, expenditures for sociocultural, sport and recreation programmes are determined on the basis of the norms of the Industrial agreement of the mining and metallurgical complex of Ukraine. The results demonstrate that at the enterprises under study, the employees’ economic security level fluctuated from mean to high during 2018-2019, this testifying to the correct choice of the policy for ensuring employees’ economic interests at those enterprises. Application of the proposed methodology will provide enterprise management with additional analytics for reasonable managerial decision-making concerning their social policy. In addition, the obtained data will enable more efficient management of employees’ economic security at the levels of both enterprises and government regulation.

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