The purpose of the incentive is to motivate workers to perform well. An employer may choose to pay it in cash or in kind. A financial incentive is a sum of money given by a business to its staff in order to inspire them or to promote a particular behavior or action. Financial incentive programs are offered by employers to promote increased employee loyalty and productivity. Employee motivation and productivity maintenance are achieved through the deployment of seven common incentive types:
- Salary and Benefits
- Bonus Co-Partnership with Profit Sharing
- Wage-Based Rewards
- Requirements for Retirement Benefits
