Abstract

Introduction. The need for a transition to a new system of motivating state and municipal employees’ activities has been widely discussed in recent years. Moreover, some government bodies have taken certain actions in this direction. But in general, there have not been any significant changes. The authors of the article are convinced that the transition to more effective management is impossible without changing the civil servants’ remuneration system, which should motivate them to achieve significant results in the areas for which they are responsible. The paper considers the conceptual approach of transferring the civil servants’ remuneration to a new system, shows the advantages of using performance indicators to stimulate the employees’ activities. The purpose of the article is to justify the reasonability of using performance indicators when remunerating state and municipal employees. Methods. Within the framework of the systems approach, the authors use structural and functional analysis, as well as general scientific methods: abstraction, comparison, description and explanation. Scientific novelty. The authors show possibilities of using the personnel performance indicators in the state and municipal service in order to increase their motivation for obtaining significant results in their work. Results. The authors analyze the conditions for successful implementing the key personnel performance indicators in the state and municipal service, describe the typical mistakes militating the effectiveness of the personnel performance indicators in public authorities. The authors develop some recommendations to improve the use of the personnel performance indicators in the system of state and municipal administration. Conclusions. The proper use of key performance indicators of state and municipal employees will significantly increase their motivation in order to achieve high efficiency in their work. At the same time, the personnel performance indicators must be balanced and matched taking into account the goals of the organization.