Research and improvement of the administration of staff labor costs of Fast world LLC
Students Name: An Jing
Qualification Level: magister
Speciality: Business Administration
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2025-2026 н.р.
Language of Defence: англійська
Abstract: In the current era of rapid market economy development, particular attention is drawn to the issue of inadequate wage levels and the need to design an effective payroll administration mechanism. It should be noted that the level of remuneration for each employee directly affects the overall income of the population, thereby shaping demand for goods, work, and services. Hence, the problem of wage payment remains one of the most significant economic issues today. During economic development, remuneration continues to serve as one of the main tools for enhancing employee performance and as a crucial motivational factor. A well-structured wage system influences both the efficiency of labor behavior and employees’ overall well-being. Therefore, the relevance of this issue lies in ensuring appropriate working conditions to improve production efficiency. A market economy, which operates on various forms of ownership and management, must rely on wage principles that stimulate employees’ productivity, contribute to increased production and sales, develop technical capacity, enhance educational and professional qualifications, and improve the organization of production processes. The issue of wage administration remains highly relevant, especially amid the current socio-economic and military crisis. For many citizens, wages have ceased to fulfill their reproductive and motivational functions, becoming more like a form of social assistance unrelated to the quantity or quality of work performed. Moreover, wage levels in Ukraine remain considerably lower compared to other countries. Thus, the wage system requires ongoing monitoring, analysis, and regulation. The findings and conclusions of this study show that wage cost administration, as a vital component in improving business process efficiency, requires further research. This underlines the significance and practical importance of the master’s thesis topic. However, certain theoretical uncertainties regarding the administration of wage costs prevent the full utilization of its potential. The goal of this master’s research is to address the problem of effective wage cost administration, which determines the following research tasks: ? systematize sources defining the essence of wage cost administration, identify its specific features at Fast world LLC under unstable market conditions, and outline ways to improve it; ? summarize existing approaches to wage cost administration at Fast world LLC; ? assess the level of wage cost administration and identify the relationship between company performance and payroll management indicators; ? analyze the influence of key factors on the level of wage cost administration and propose directions for improvement; ? determine the current state of payroll cost administration and develop a model for its formation and development; ? formulate practical recommendations for enhancing wage cost administration and economically justify their effectiveness after implementation. Object of the study: Fast world LLC Subject of the study: theoretical, methodological, and practical tools for administering wage costs of Ukrainian enterprises. Research methods. The theoretical foundation of the study consists of core economic theory principles, Ukrainian researchers’ works on wage cost administration, Ukrainian labor and wage legislation, and analytical and statistical data from Fast world LLC. The study demonstrates that effective administration of labor costs at Fast World LLC is a critical factor for optimizing financial performance and enhancing employee motivation. The theoretical analysis highlighted the importance of combining legal, methodological, and organizational approaches to labor cost management, while the review of normative regulations emphasized compliance and structured control as foundations for efficiency. The analytical section revealed that while the current payroll system provides a functional basis for wage distribution and incentive management, there is room for improvement in the automation of accounting processes, differentiation of bonuses, and the use of non-material motivational tools to enhance employee engagement and productivity. Forecasting trends indicated that without targeted improvements, potential gains in productivity and profitability would remain limited, highlighting the need for a structured and integrated approach to payroll administration. The proposed measures focus on implementing an automated payroll accounting and control system complemented by differentiated incentive mechanisms, which combine financial and non-financial motivation methods. This includes structured bonus schemes tied to performance, career development opportunities, flexible work arrangements, and fostering a positive social and psychological climate. Economic modeling shows that the introduction of these measures will significantly strengthen the company’s financial position. Increased employee motivation and optimized labor cost management are expected to boost net revenue and reduce conditionally fixed costs, leading to higher profitability and enhanced return on assets and equity. The project’s rapid payback period further confirms the effectiveness of these interventions. Overall, the implementation of the proposed system will improve operational efficiency, support sustainable growth, and create a motivated and productive workforce at Fast World LLC.