Labor potential as a factor of ensuring competitive advantages of business entities in Ukraine

Abstract The purpose of the article is to justify the use of a matrix approach to the interpretation of the results of evaluating the effectiveness of the development of labor potential. As evaluation indicators, we propose the level of management of labor potential, which is determined using the grapho-analytical method “potential square” and the level of management of the competitiveness of the business entity, which is determined using the graphic method “polygon of competitiveness”. To identify these indicators, we used a developed three-point aggregated scale, which made it possible to quantitatively divide the formed quadrants according to threshold values: the zone of high efficiency in the use of labor potential (quadrant 9(MLLPQPHigh; MLCBECBHigh)), average (quadrants 3 (MLLPQPHigh; MLCBEC-BLow), 5 (MLLPQPAverage; MLCBECBAverage), 6 (MLLPQPHigh; MLCBECBAverage), 7 (MLLPQPLow; MLCBECBHigh), 8 (MLLPQPAverage; MLCBECBHigh)), and low (quadrants 1 (MLLPQPLow; MLCBECBLow), 2 (MLLPQPAverage; MLCBECBLow), 4 (MLLPQPLow; MLCBECBAverage)). The value of the research lies in the fact that the proposed matrix approach to the results of evaluating the effectiveness of the development of labor potential makes it possible to take measures to improve its management. It is emphasized that in today’s conditions and the limitation of financial resources, the vector of management should be aimed at preserving the labor potential, using its opportunities and experience.