Estimation of effectiveness of different motivation systems in banking sector

Student: Vlasova Galina

Supervisor: Evgeniy M. Ozhegov

Faculty: Faculty of Economics

Educational Programme: Bachelor

Year of Graduation: 2014

<p>This research is devoted to estimation of the effectiveness of different motivation systems for credit managers working in the Perm branch of Sberbank. The aim of the new motivation system is to increase employee’s productivity with monthly premium which is linked with the amount of issued loans. Poisson regression with random effects and correction for selection was estimated on the example of two types of credit issued from 2011 to 2013. The results show that new motivation systems are more effective than the old one – there was increase of issued loans and employee’s productivity. In addition, there is more detailed analysis of the effectiveness of motivation systems for different subsamples of employees by gender, education, age, experience.</p>

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