Incentives are part of the management approach called Pay Per Performance. This approach is very popular with most of the business world and has been used successfully to change many industries, such as consumer products and even university education. Here is an overview of some terms and their usage. I hope that after reading these simple definitions, things seem a bit clear regarding rebate and incentive programs.
What is the incentive program?
Here is the simplified explanation of what the performance incentive program is. The incentive program is the example of the incentive plan that is being provided by the management of an organization to motivate the workers for better performance.
Example of Intensive
A simple example of an incentive program might be a company paying employees to work on a specific project away from home for a few days. They may be paid some extra time off, cash, an award to show management’s appreciation for their hard work.
Why do we need incentives?
The basic thinking behind this is that workers will try to improve their performance in order to reap these benefits. The rewards offered by the incentive program can be in the form of shares, recognition, better facilities, promotion or simply appreciation.
What are the common types of incentives?
Every organization uses different sets of incentives to motivate employees. Here are some common incentives that can be used frequently.
1. Monetary Incentives
2. Non-monetary incentives
3. Merchandise
4. Recreation and free time
5. Travel privileges
6.Others
Are incentives good motivators?
Strictly speaking in management terms, incentives are often seen as the help rather than the complete answer to any solution. The logic remains that incentives are often given to top management and the hardest working lower staff are not paid a hundred more. This could be the reason why incentives are often not successful in achieving the desired results.
Online rebate programs
Historically speaking, the first web-based incentives started in 1996. After more than 24 years, this program has become a key growth area for business and has over a thousand companies running in every corner of the world. . There is an association that represents them under the name of Online Incentive Council (OIC).
What are the key areas of the incentive program?
Incentives are being used in almost every other business, including health, consumer products, education, cosmetics, restaurants, fashion, media, and communication as well.