When an individual finds something valuable, he/she will see it as a potential gain, or an incentive if it is received from a given decision.
Incentives tend to encourage action, greater effort, or reward for increased productivity among an individual. Compensation incentives can include factors such as salary increases, profit sharing, contracts, and stock options. Award incentives include actions such as appreciating employees for their achievements, awarding achievement certificates to motivate employees, and presenting achievements at company meetings. Premium incentives include items such as gifts, monetary awards, premium gifts for services, and items such as gift certificates. Another example is the employee referral bonus. This is used by some companies to encourage employees to introduce job seekers.
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