The main problem of the study is that in many organizations the personnel remuneration systems do not meet modern requirements of strategic management and do not fully take into account the needs of employees, the level of their contribution to the common cause and the peculiarities of the organizational culture. The lack of a clear connection between labor results and the incentive system leads to a decrease in motivation, a formal attitude to responsibilities, an increase in staff turnover and a drop in productivity. In the context of increasing competition and constant changes in the external environment, the effectiveness of the remuneration system is becoming one of the key factors in the sustainable development of the company. The purpose of the article is to analyze the role and importance of the remuneration system as a tool for personnel management and improving organizational efficiency. Methods: the study used the methods of comparative analysis, questionnaires, expert assessment and a systems approach, which made it possible to comprehensively consider the impact of the incentive system on employee behavior. The obtained results confirm the direct relationship between the fairness and transparency of the remuneration system and the level of labor motivation, and also demonstrate that a well-designed incentive system helps to reduce staff turnover and increase labor productivity. The practical significance of the study lies in the possibility of applying its findings to improve existing incentive systems in organizations of various profiles, which will increase staff involvement and achieve sustainable development of the company.