Economics and Business Management

Labour motivation in agricultural enterprises: Theoretical foundations and the state of development in Ukraine

Yevhenii Lanchenko, Mykola Yakymenko
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Abstract

The relevance of this study stems from the fact that, despite the decisive role of motivation in ensuring labour productivity and socio-economic stability in rural areas, its level at Ukrainian agricultural enterprises remains low due to insufficient remuneration, seasonal work, and unstable employment. The aim of the study was to analyse the relationship between wages and employment in the agricultural sector of the economy and to determine the significance of economic and non-economic factors in employee motivation. The study employed structural and comparative methods, as well as statistical analysis. The research demonstrated that the components of labour motivation include incentives and interests, which may be influenced by employers or the state in order to motivate employees. At the same time, incentives may be both material and non-material. The approaches of various scholars to the study of labour motivation were also examined. An analysis of wage dynamics showed that during 1995-2024, nominal wages in agricultural enterprises increased by more than 120 times, while real wages rose by 9.7 times, indicating an improvement in material working conditions. Nevertheless, the wages of agricultural workers remained below the national average: in 1995 the gap amounted to -30%, while by 2024 it had narrowed to -16%. In the field of employment, a steady downward trend was observed: the share of employees in the agricultural sector within the overall employment structure decreased by 20.3%, driven by technological modernisation, seasonality, and demographic changes in rural areas. At the same time, the trends observed in the agricultural sector were more favourable compared with other sectors, namely construction and industry. Overall, the findings indicate that, despite improvements in financial and social conditions, labour motivation requires a comprehensive approach combining economic, social, and psychological factors. The obtained results are of practical significance for the development of effective motivational mechanisms capable not only of increasing labour productivity but also of ensuring the sustainable socio-economic development of Ukraine’s rural areas

Keywords

wages; employment; unemployment; agricultural sector of the economy; incentives; labour efficiency

Suggested citation
Lanchenko, Ye., & Yakymenko, M. (2026). Labour motivation in agricultural enterprises: Theoretical foundations and the state of development in Ukraine. Economics and Business Management, 17(2), 147-162. https://doi.org/10.31548/economics/2.2026.147
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