Question

Define incentive. Provide an example of a financial and a non financial incentive....

Answer 1

An incentive is a thing that motivates or encourages one to do something.

Financial incentives can include things like bonuses, raises, paid time off, and other things that involve money.

Non-Financial incentives include things like recognition, respect, career development opportunities, retirement planning assistance, improved work environment, etc.

Answer 2

Incentives:

A thing that can attract an employee's attention and motivates or encourages them to work more can be called as incentives. It aims at improving overall performance of an organization.

Financial incentives:

Financial incentives are considered as offering cash for extra efficiency of an employee. And satisfy the monetary and future security needs of the individuals. For example, Profit sharing plan, Bonus, retirement benefits, pay and allowance, etc.

Non financial incentives:

This type of incentives are considered as motivational factor for the employees. Apart from the monetary and future needs, an individual also has psychological, social and emotional needs. It cannot be measured. For example, job enrichment, employee empowerment, job security.