REWARD POLICY IN CORPORATE GOVERNANCE: THE UKRAINIAN PUBLIC HEALTHCARE SECTOR CASE

Authors

  • Oleksandr DLUHOPOLSKYI, DSc (Econ.), Prof. West Ukrainian National University image/svg+xml , University of Economics and Innovation in Lublin (WSEI), Lublin, Poland
  • Alina ZHUKOVSKA, DSc (Econ.), Prof. West Ukrainian National University image/svg+xml
  • Yurii IVASHUK, PhD (Econ.), Assoc. Prof. West Ukrainian National University image/svg+xml
  • Natalia HORBAL, PhD (Econ.), Assoc. Prof. Lviv Polytechnic National University image/svg+xml
  • Oleh DZIKH, Master's Student West Ukrainian National University image/svg+xml , Ternopil Regional Clinical Hospital, Ternopil, Ukraine

DOI:

https://doi.org/10.17721/1728-2667.2026/229-2/6

Keywords:

reward policy, healthcare governance, HR digitalisation, public healthcare institutions

Abstract

Background. Ukraine's healthcare institutions operate under conditions of extreme military, economic and social pressure, which heightens the importance of effective human resource management and the development of modern reward mechanisms. Motivation and retention of medical personnel remain critically important challenges, as municipal healthcare institutions face staff shortages, burnout risks and the need to maintain service quality while operating under financial constraints. The object of this study is the reward system in a municipal healthcare institution, while the subject is the doctors' expectations and behavioural responses to monetary and non-monetary incentives. The purpose of the research is to assess key motivational factors and identify structural imbalances in the existing reward policy.
Methods. The study applies a system-structural and behavioural approach. A survey of 250 physicians was conducted to identify their expectations regarding recognition, career development, workload compensation, and financial incentives. Correlation analysis was used to determine the relationships between motivation drivers (recognition, career opportunities, financial rewards) and doctors' willingness to increase work effort. Comparative analysis was employed to contrast the effectiveness of material and non-material rewards. Additionally, the research evaluates the potential of digital HR tools (HRIS, electronic performance systems, AI-driven analytics) for improving transparency and communication within reward management.
Results. The findings reveal that recognition and financial incentives constitute the strongest drivers of professional motivation: 88% of doctors view monetary rewards as the most effective incentive, while 92% report increased effort when recognition is ensured. The most valued non-financial motivator is career development (68%). Correlation analysis demonstrates a strong relationship between recognition expectations and career-growth motivation (r = 0.885; R² = 0.78), and between the perceived importance of rewards and preference for financial incentives (r = 0.935; R² = 0.88). The results indicate significant structural gaps in existing reward systems, particularly insufficient non-material recognition and limited career advancement pathways, which negatively affect job satisfaction and retention. Integration of digital HR tools enhances administrative efficiency and supports more transparent reward governance.
Conclusions. A balanced and transparent reward policy is essential for strengthening the resilience and performance of Ukraine's healthcare institutions. The results of the study indicate the need to diversify reward mechanisms by combining financial incentives with structured recognition practices, professional development programmes, and digital HR solutions. Such a system fosters higher motivation, reduces burnout risks, supports staff retention, and improves the quality of medical services. The proposed methodological approach can be applied to other public healthcare settings, while future research may further explore behavioural responses to reward components and the impact of digital HR infrastructures on motivation dynamics.

Downloads

Download data is not yet available.

References

Abduljawad, A., & Al-Assaf, A.F. (2011). Incentives for better performance in health care. Sultan Qaboos University Medical Journal, 11(2), 201–206. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3121024/

Adams, J. S. (1965). Inequity in social exchange. In: L. Berkowitz (Ed.), Advances in experimental social psychology, 2, 267–299. https://doi.org/10.1016/S0065-2601(08)60108-2

Barinua, V., Edem, K.O., & Harry, O. F. (2022). Employee reward system and corporate effectiveness. Research Journal of Management Practice, 2(4), 41–50. https://www.ijaar.org/articles/rjmp/v2n4/rjmp-v2n4-Apr22-p2410.pdf

Bebchuk, L. A., Fried, J., & Walker, D. I. (2002). Managerial power and rent extraction in the design of executive compensation. CEPR Discussion Paper, 3558. Centre for Economic Policy Research. https://lucianbebchuk.com/ pdfs/2002.Bebchuk.Fried.Walker.ChicLR.Managerial.Power.pdf

Bersin, J. (2020). HR technology market 2020: Disruption ahead. Deloitte Insights. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/ 2020/hr-technology-disruption.html

Bilovodska, O., Boienko, O., & Kiziloglu, M. (2026). Internal marketing as a strategic tool for developing innovative and managerial potential and enhancing the competitiveness of business entities. Bulletin of Taras Shevchenko National University of Kyiv. Economics, 1(228), 19–29. https://doi.org/10.17721/1728-2667.2026/228-1/3

Bittium (2024). Bittium Corporation Remuneration policy. https://www.bittium.com/wp-content/uploads/2024/10/Remuneration-Policy-2024.pdf

Dery, K., Sebastian, I. M., & van der Meulen, N. (2017). The digital workplace is key to digital innovation. MIS Quarterly Executive, 16(2), 135–152. https://aisel.aisnet.org/misqe/vol16/iss2/5

Duffhues, P., & Kabir, R. (2008). Is the pay-performance relationship always positive? Evidence from the Netherlands. Journal of Multinational Financial Management, 18(1), 45–60. https://doi.org/10.1016/j.mulfin.2007. 02.004

Financial Crime Academy (2025). Incentives or remuneration policies: Employee compensation pay definition. Markets Compliance. https://financialcrimeacademy.org/incentives-or-remuneration-policies/

Freeman, R. B., & Kleiner, M. M. (2005). The last American shoe manufacturers: Decreasing productivity and increasing profits in the shift to continuous flow production. Industrial Relations, 44, 307–330. https://users.nber.org/~confer/2005/si2005/ppl/kleiner.pdf

Gauld, R. (2016). Principal-agent theory of organizations. In: A. Farazmand (Ed.), Global encyclopedia of public administration, public policy, and governance. Springer. https://doi.org/10.1007/978-3-319-31816-5_72-1

Green, C., & Heywood, J.S. (2008). Does performance pay increase job satisfaction? Economica, 75(300), 710–728. https://www.jstor.org/stable/40071792

Green, F. (2004). Why has work effort become more intense? Industrial Relations, 43(4), 709–741. https://doi.org/10.1111/j.0019-8676.2004.00359.x

Ivashuk, Y. P. (2016). Emergent institutional order in the economy and its behavioral foundations. Economic Theory, 3, 69–81. http://dspace.wunu.edu.ua/handle/316497/4562

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X

Judge, T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001). The job satisfaction–job performance relationship: A qualitative and quantitative review. Psychological Bulletin, 127(3), 376–407. https://doi.org/10.1037/ 0033-2909.127.3.376

Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. https://doi.org/10.2307/1914185

Kaur, P., Dhir, A., Rajala, R., & Dwivedi, Y. K. (2021). Why do people use gamification in learning? A mixed-methods study. Journal of Business Research, 122, 336–347. https://doi.org/10.1016/j.jbusres.2020.08.042

Khandelwal, V., Tripathi, P., Chotia, V., Srivastava, M., Sharma, P., & Kalyani, S. (2023). Examining the Impact of Agency Issues on Corporate Performance: A Bibliometric Analysis. Journal of Risk and Financial Management, 16(12), 497. https://doi.org/10.3390/jrfm16120497

Kolluru, M. (2021). Association between rewards and employee performance: An empirical research on Omani banks. Corporate Governance and Sustainability Review, 5(1), 15–21. https://doi.org/10.22495/cgsrv5i1p2

Kuo, H.-C., Lin, D., Lien, D., Wang, L.-H., & Yeh, L.-J. (2014). Is there an inverse U-shaped relationship between pay and performance? The North American Journal of Economics and Finance, 28(C), 347–357. https://doi.org/10.1016/j.najef.2014.03.007

Lardner, S. (2023). Navigating the gold standard of remuneration policy: From governance theory to practical excellence. Innecto Reward Consulting. https://www.innecto.com/resources/insights/navigating-the-gold-standard-of-remuneration-policy

Latham, G. P., & Pinder, C. C. (2005). Work motivation theory and research at the dawn of the twenty-first century. Annual Review of Psychology, 56, 485–516. https://doi.org/10.1146/annurev.psych.55.090902.142105

Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American Psychologist, 57(9), 705–717. https://doi.org/10.1037/0003-066X.57.9.705

Marjanovic, S., Krapels, J., & Chataway, J. (2022). Workforce and digital health: A review of challenges and opportunities. RAND Corporation. https://www.rand.org/pubs/research_reports/RRA1501-1.html

Matinheikki, J., Kauppi, K., Brandon–Jones, A., & van Raaij, E. M. (2022). Making agency theory work for supply chain relationships: A systematic review across four disciplines. International Journal of Operations & Production Management, 42(13). https://doi.org/10.1108/IJOPM-05-2022-0543

McCausland, W., Pouliakas, K., & Theodossiou, I. (2005). Some are punished and some are rewarded: A study of the impact of performance pay on job satisfaction. International Journal of Manpower, 26(7), 636–659. https://doi.org/10.1108/01437720510628112

Metso Outotec. (2024). Remuneration policy for the Board of Directors and the CEO. https://www.metso.com/globalassets/investors/remuneration/ metso-outotec-remuneration-policy.pdf

Mettler, T., & Pinto, R. (2018). Evolutionary paths and influencing factors towards digital maturity in HRM. Journal of Organizational Effectiveness: People and Performance, 5(2), 132–148. https://doi.org/10.1108/JOEPP-03-2018-0012

Mount Sinai. (2022). Employee Engagement and Patient Satisfaction Report. https://www.mountsinai.org

Nizhnyk, V. M., & Kharun, O. A. (2011). The mechanism of motivation for high-performance labor of enterprise personnel. Khmelnytskyi : KhNU. https://elar.khmnu.edu.ua/server/api/core/bitstreams/4325195d-e50b-44ce-895e-b3a37a0f2a78/content

Opio, M., Agweta, C., Ejang, M., Picorella, I., & Okello, T. R. (2022). The effect of reward practices and health service delivery in health facilities – Kwania District Uganda. Journal of Human Resource and Sustainability Studies, 10(2), 259–276. https://doi.org/10.4236/jhrss.2022.102014

Oyira, E., Ella, R., Nkamare, S.E., & Lukpata, F.E. (2015). Effect of reward system among health care workers performance: A case study of University of Calabar Teaching Hospital Calabar, Nigeria. Journal of Hospital Administration, 4(3), 45–53. https://doi.org/10.5430/jha.v4n3p45

Press Ganey. (2021). Patient Experience Case Study: Cleveland Clinic. https://www.pressganey.com

Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68–78. https://doi.org/10.1037/0003-066X.55.1.68

Shaulska, L., Chubuk, L., & Haidamaka, D. (2025). A model for assessing the effectiveness of state-owned enterprises by financial indicators: Analysis and improvement. Bulletin of Taras Shevchenko National University of Kyiv. Economics, 2(227). https://doi.org/10.17721/1728-2667.2025/227-2/12

Skinner, B. F. (1956). Science and human behavior. Macmillan. https://archive.org/details/dli.ernet.448915

Sunstein, C. R., & Thaler, R. (2016). The two friends who changed how we think about how we think. The New Yorker. https://www.newyorker.com/books/page-turner/the-two-friends-who-changed-how-we-think-about-how-we-think

Syafriadi, E., Sitepu, H. B., Andini, Y. P., Muda, I., & Kesuma, S. A. (2023). The impact of agency theory on organizational behavior: A systematic literature review of the latest research findings. Brazilian Journal of Development, 9(12), 31895–31911. https://doi.org/10.34117/bjdv9n12-090

Vroom, V. H. (1964). Work and motivation. Wiley. https://ru.scribd.com/document/408299722/WORK-AND-MOTIVATION-Victor-Vroom-pdf

West, M. A., & Dawson, J. F. (2012). Employee engagement and NHS performance. The King's Fund. https://www.kingsfund.org.uk

Wilson, M. (2025). How to reward team members at a clinic: Strategies for healthcare staff rewards. Bucketlist Rewards. https://bucketlistrewards.com/ blog/how-to-reward-team-members-clinic/

WUNU. (2023). Development strategy of West Ukrainian National University for 2024–2028. Ternopil. https://www.wunu.edu.ua/pdf/doc_zunu/ ust_doc/str_rozvutky_zunu_2024.pdf

Downloads

Published

2026-06-27

How to Cite

DLUHOPOLSKYI, O., ZHUKOVSKA, A., IVASHUK, Y., HORBAL, N., & DZIKH, O. (2026). REWARD POLICY IN CORPORATE GOVERNANCE: THE UKRAINIAN PUBLIC HEALTHCARE SECTOR CASE. Bulletin of Taras Shevchenko National University of Kyiv. Economics, 2(229), 57-73. https://doi.org/10.17721/1728-2667.2026/229-2/6