Management of the enterprise wage fund in the context of the EAF Model
DOI:
https://doi.org/10.15584/nsawg.2025.1.5Keywords:
EAF model, Management Index, Labor Productivity Index, wage fundAbstract
This study aims to develop and verify in empirical applications an economic model for determining the real level of employee remuneration, human capital utilization, and managerial efficiency within enterprises. Amidst ongoing debates concerning wage structures and compensation systems, this research introduces the Economic Activity Function (EAF) as a tool for analyzing labor productivity and wage distribution.
A mixed-methods approach was employed, combining a literature review to establish the role of the economic constant a = 0.08 [1/year] in compensation analysis with an empirical case study of Komfort-Eko Ltd. Utilizing financial statement data, key indicators—including the Management Index (M) and the Labour Productivity Index (Q)—were calculated to assess wage fund allocation efficiency.
Findings reveal that the EAF framework enables the estimation of crucial managerial indicators, serving as a valuable instrument for evaluating corporate performance and optimizing remuneration structures. By forecasting labor productivity for subsequent periods, businesses can predict remuneration levels, including bonus allocations, thereby enhancing financial planning and employee motivation.
The implications of this study extend to policymakers and business leaders, providing a robust analytical framework for evaluating management quality, labor productivity, and remuneration fairness. The predictive capabilities of the EAF model facilitate financial scenario planning and decision-making, ultimately contributing to a more structured and data-driven approach to corporate wage management.
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