performance incentives
Merit-based reward system
Performance incentives are rewards—usually financial—offered to motivate employees toward specific goals or outcomes.
Common forms include bonuses, commissions, stock options, and profit sharing.
The theory is that people work harder when compensation is tied to results: The sales team's performance incentives kick in after they hit quota.
Critics note they can encourage short-term thinking or gaming metrics rather than genuine productivity.
- bonusReward beyond expectation
- year-end bonusAnnual supplemental compensation
- signing bonusPayment upon accepting employment
- raiseLift or increase
- stock optionsContracts to purchase shares
skin in the game · profit-sharing · reward systems · carrot and stick · employee recognition · employee of the month · gold star · merit pay · commission · sales quota · cash · incentive plans · paycheck · intrinsic rewards · operant conditioning · professional development · awards ceremonies · corner office
- profit sharingprofit sharing, profit-sharing, shared profits, revenue sharing, bonus
- Sales Incentivescommissions, bonuses, quotas, compensation plans, payout
performance incentivesbase pay
Compensation before additions
base salary · hourly wage · flat rate · salary cap · equal pay
performance incentivespunitive measures
Actions imposing penalties
disincentives · disciplinary actions · sanctions · fines · pay cuts
performance incentivespunitive measures
Actions imposing penalties
penalties · disincentives · sanctions · disciplinary action · demotivators