Financial Incentives

The incentive is a way to encourage employees to work efficiently. It can be paid by an employer in monetary or non-monetary ways. A Financial Incentive is a monetary benefit that is paid by a company to motivate employees or to encourage a specific action or behavior. Employers have financial incentive programs to encourage greater productivity and loyalty among employees. There are seven common types of incentives that are used to motivate employees and maintain the productivity level;

1. Pay and Allowances
2. Bonus
3. Profit-Sharing
4. Co-Partnership
5. Wage Incentives
6. Retirement Benefits
7. Perquisites