The paper presents an analysis of the problem of functioning of higher education institutions, which arose during the transition to a market economy and the influence of a set of environmental factors, which led to a sharp increase in competition in the market of educational services. As a result of the struggle for financial and human resources (potential entrants) between state and non-state (commercial) universities, the problem of improving the quality of educational services becomes a topical issue. The article focuses on the personnel policy necessary for the educational organization in the creation of the personnel reserve of the University. This, according to the authors, enables rapid adaptation and adequate response to the many challenges of the changing educational environment. The authors also note the importance of material and non-material incentives for employees of higher education, which is carried out on the basis of the introduction of an effective contract, which optimizes wages, depending on the results of activity and quality of services provided by the teacher. All this, in the end, allows you to increase the personal rating of the teacher, and the University as a whole.