An incentive is described as being something which motivates or enables a particular course of action, or influences one choice over another. Incentive programs are schemes used to promote or encourage specific actions or behaviour, these are usually some kind of motivation program which has rewards at the end should targets be met.
Sales incentive programs are probably the most common or well known incentive programs, these are used to encourage sales staff to sell products and meet target deadlines. Most companies make a substantial investment in incentive programs and for that to pay off; the program has to involve all participants to get sufficient returns on investment, for example within sales targets are set which individuals or teams have to meet by a deadline, if the target is met then a reward is given, whether that be a financial reward or a incentive gift.
Incentive programs are used by business management in order to motivate employees and in sales to attract and retain customers, incentives promote determination, they set a goal, they inspire people to overcome obstacles in order to reach the end result.
An incentive can be likened to the old saying of dangling a carrot in front of a donkey, donkeys are stubborn creatures but if enticed with a carrot will perform, similar to us humans, if we have something which stirs our passions, we are more likely to press forward whereas if there is no incentive we are just as happy to plod along at our own pace.
Incentive programs and employee reward schemes are similar in the way that they acknowledge an achievement, we all feel good if we are given a pat on the back for doing something good, or a thank you for going out of our way, and this recognition boosts self esteem and reiterates our worth making us want to work or perform better, if our actions are always unnoticed then we stop trying.
Moral incentives still do exist within society, doing something because it is the right thing to do, not necessarily the easy thing to do is a form of moral incentive. There are no prizes for moral incentive except the good feeling of self esteem which can be achieved, and a sense of personal pride. Failure to do the moral thing is often has negative implications which can cause adverse feelings.
Within the business setting incentive programs such as sales incentives (as mentioned before) may range from financial bonuses to meals out, gift vouchers to activities. Team incentive programs will usually offer a goal which can be enjoyed by the whole team such as a pampering day, or paintballing, something which happens as a group, incentives such as these promote team play, everybody has to work together, doing their part in order to complete the task and win the prize. This way of giving incentives promotes team building and bonding, but also has a positive effect on business itself, making employees work together to meet targets within deadlines.
Incentive programs are a good thing if used in the correct manner, which is to motivate, if they are used in such a way whereby it seems only to favour only certain members of staff, those who are only in a position to meet a target then this can be seen by other employees as favouritism, instead of motivating this will undermine making people lack lustre in their performance.
Author Resource:-
Anna Stenning investigates how incentive programs is used in the correct manner can motivate staff to achieve and therefore benefit business by meeting targets.
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