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Employees who perform receive extra benefits in the form of a reward. Offering employees a reward or recognition for the job done right within the predetermined time can be referred to as an incentive. 

The primary goal of an incentive plan is to link employee benefits to their accomplishments. This is obtained by increasing bonuses in exchange for improved results. Individuals will normally aspire for greater incentives through increased productivity, and their success will be dependent on increased efforts. Some people would rather get more time off than more money.

Importance of Incentives: 

  • The main benefit of an opportunity is that it encourages and motivates employees to perform more efficiently and generate more productivity. 
  • Employees’ fears of unemployment are relieved by base pay. 
  • Employees’ earnings will be boosted as a result of the bonus. 
  • It’s also likely that production capacity will expand. 


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