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Incentive Program

Updated on September 28, 2007

Incentive Program

It's very difficult to earn money nowadays to support one's self together with his family. To earn sufficient amount of income one should have a double work load. However, an employee would find it difficulty to convince his employer to provide work overtime if overtime is not indispensable to the current work condition and overtime pay is not within the budget of the employer.

To address this problem, employers opted to formulate different strategies to boost their employees interest not only to work but to work efficiently and dedicatedly.

Incentive program has been discovered as a relief to the employer's impediments. Incentive programs is one of the effective means to motivate a person. It is an employee motivation technique that offers cash, gift, salary increase, special recognition or other awards for exceeding performance goals.

Every individual has the tendency to feel exhausted or tired after the performance of his daily routine or work within a particular time and as a result work production or company quota decreases. As a remedy to the underlying business stress employers formulated and implemented the incentive program wherein employees who efficiently meet or reach a particular standard of work or rating on the basis of his input (idea/knowledge) and output (production) within a certain period would be rewarded.

Through the incentive program , companies growth have rapidly elevating because the program has a great impact to the degree of efficiency, quality and effectiveness of the employees who have been motivated to attain a particular incentive. Such employees would definitely strive harder for a higher productivity and that is for sure.

Incentive program may also be designed in the form of a contest whereby individual or groups of employees compete with each other to achieve the defined performance goal. In short, incentive program is a formal scheme of inducing someone particularly the employees to do something (work related) for more production.

Potential advantages of incentive program would be to promote or encourage employees more than that of complying with the regular requirements.

However, there is a disadvantage in providing an incenttive program, that is, if it is not within the interest of the employees. In short incentive program s should be within the interest of the employeees inorder for them to be motivated to do extraordinary work and provide extraordinary skills. Otherwise, incentive program s will not serve any purpose. Like for instance, many companies mistakenly presumed that one incentive program may also work with other companies and as a result they would tend to share and apply a particular incentive program that effectively motivates a specific group of people to another group of people from a different workplace. Out of this presumption lots of companies failed to succeed in encouraging their employees because of lack of observation and research. Simply because employees in an ice cream company would not take as an incentive the free monthly supply of ice cream if he exceeded his previously month's perfomance rating.

Incentive program should include offers, which are attactive to the eyes of the employees in which case it would become factors to motivate them. in achieving a particular goal.

People need positive incentives to encourage them to exercise regularly and to eat healthily. Incentives are especially important for competitive sports people who have to train intensively and strictly regulate their diets to achieve success. Incentives vary from individual to individual, but most people are attracted towards activities which offer the following:

  • Power incentive - a feeling of authority and not being dominated by others Aggression incentive - minimize level of hostility Affiliation Incentive - reassurance and support from a group Independence incentive - an opportunity to work independently Achievement incentive - a strong sense of achievement and success

A particular incentive will direct a person's immediate behaviour towards a particular goal only if it is the strongest of all competing incentives. Sport psychologists generally agree that the achievement incentive is often the greatest driving force for competitive athletes. Psychologists also recognize that in order to reach long-term goals, a sense of achievement must be reinforced continually by successful completion of short-term intermediate goals.

Incentive program always pertains to a more or less extrinsic motive for acting in a certain way. Incentives often act in addition to other motives to strengthen a drive towards an end or objective (such as food, drink, or money) by attaching additional values to that objective.


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      sammy 6 years ago

      Awesome article on employee incentive programs.

    • Totolek profile image

      Rolex S. Reyes 7 years ago from Manila, Philippines

      I absolutely agree with you.

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      Loren Weaver 8 years ago from Atlanta, Georgia

      Solid advice in this hub. Employee reward and incentive programs are a proven technique for increasing employee engagement, boosting morale, improving performance and changing behaviors. Most employees say they would prefer to be rewarded with in these programs, where research is showing that use of non-cash rewards will increase motivation and results.