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.

Opposites
compensation structure

performance incentivesbase pay

Compensation before additions

base salary · hourly wage · flat rate · salary cap · equal pay

motivational approach

performance incentivespunitive measures

Actions imposing penalties

disincentives · disciplinary actions · sanctions · fines · pay cuts

motivation mechanism

performance incentivespunitive measures

Actions imposing penalties

penalties · disincentives · sanctions · disciplinary action · demotivators

Family

performance, incentives

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G