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An Incentive is an object, item of value, or desired action or event that spurs an employee to do more of whatever was encouraged by the employer through the chosen incentive.
Employers use Incentives to promote a particular behavior or performance that they believe is necessary for the organization’s success. For example, a software company provides employee lunches to promote teamwork across departments and functional areas. They also use the lunches to provide necessary information to employees or for employees to present to their coworkers on hobbies and interests – all of which contribute to staff members knowing each other better.
Employers are used incentives for reasons such as:
Four kinds of incentives are available for employers to use at work.
The other would categorize these incentives differently, but these four categories work for many. Four kinds of incentives are as mentioned bellow:
a) Compensation incentives may include items such as raises, bonuses, profit, signing bonus, and stock options.
b) Recognition incentives include actions such as thanking employees, praising employees, presenting employees with a certificate of achievement, or announcing an accomplishment at a company meeting.
c) Rewards incentives include items such as gifts, monetary rewards, service award presents, and items such as gift certificates. An additional example is employee referral that some companies use to encourage employees to refer job candidates.
d) Appreciation incentives include such happenings as company parties and celebrations, company paid family activity events, ice cream socials, birthday celebrations, sporting events, paid group lunches, and sponsored sports teams.
