Why Incentives in the Workplace Are Extremely Important?

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Let’s think about a pet for a second, for example a dog. When teaching dogs a trick, you should make sure that they are rewarded with a treat. This acts as a reward, and their brain tells them to repeat that trick if they want to get that treat again. This is an incentive.

There are many ways through which managers and owners can give out incentives to their workers. But first, let’s brush up a little on the potential benefits of incentives and how they can create a positive environment within an organization.

Most managers don’t realize how important incentives are to their employees. They believe employees are motivated by force and by aggression and by a strict leadership style. Unfortunately, this is very far from the truth. There are several factors that can help employers gain by giving incentives in the workplace.

Boosting Productivity

One element that most managers worry about a lot is productivity in the workplace. They attend long sessions, read books, and watch discussions on how they can boost the productivity of their staff, but they forget that productivity is one step away if you properly pass out incentives to your staff.

In reality, incentives to workers can boost their productivity. This will create a chain of events. When productivity occurs, the staff makes less errors and they produce better quality output. This will result in better production. When the product or service is received by the client(s), they will be on cloud nine. A happy client is always good news for any business.

Harmonious Workplace

How is your workplace when it comes to moods? What about your staff? Are they generally happy, or is everyone at the edge of their seats? Well, the pandemic isn’t giving us any good news and restrictions aren’t easing up that much either. This can tick people off for sure.

If managers are actually concerned about the atmosphere of their workplace, then they really need to give incentives to their workers. This will make them believe that they are necessary, and that they are valued.

Of course, they will become happy. Elated employees will create a workplace that has a positive attitude. Due to this, less fights and arguments will occur. More work will come out in a less amount of time, and you won’t have to involve HR every other day to end quarrels and arguments.


There are countless ways to motivate your employees. One simple way is to give incentives to your staff. We will talk in detail about how a manager can give incentives as well.

Why is motivation important? Well, motivation is something that allows people to work. Without motivation, people wouldn’t leave their beds and they would watch TV all day long. Similarly, managers struggle with motivating their employees because they’re often giving them something that they don’t want.

Managers often confuse demotivation with lack of talent. This is not the case. Just because an employee is not motivated to work doesn’t mean they can’t work. Therefore, managers and owners should really pay attention to giving out incentives to their employees. This will also boost their loyalty. Greater loyalty to the company will then result in the employee staying with the company for a long time. No manager wants to involve HR to hire new staff every other day, it can actually cost a lot of time and money.

How to Give Out Incentives

Here’s the real deal: giving out incentives to your workers or staff shouldn’t cost you or the company a lot. Yes, in some scenarios it may take a portion of the company’s budget to give out incentives but this doesn’t happen every single time. Incentives can be both expensive and inexpensive.

For example, many companies in the United States give out presents to their employees on Christmas. These presents don’t have to be expensive. They can be anything from a coffee mug to a T-shirt to a watch. These incentives are by the company, so they can always make the employees believe that they are important and needed by the organization.

Another way to give incentives to your employees is by appreciating them. A simple thank you, or a pat on the back, or a clap or maybe a smile can actually act as an incentive. This may be short-term but it can motivate employees to work better. Note that this should occur not just when employees do good work, but also when they make mistakes because this can make them understand that their organization respects them.

If a manager wants to go over the top for a specific employee who has worked really hard, then a handwritten note can be given, or perhaps a discount voucher.

Discount vouchers sound cheap but they’re actually not that bad. The same goes for gift cards. People eat out a lot. So gift cards for let’s say a restaurant can also act as an incentive.

Now, let’s talk a bit about employee incentives that may cost more. Changing the furniture and getting your employees new armchairs or desks can really uplift their moods and motivate them. Or perhaps, if the company budget allows it, then doing a whole makeover of the office can really pump up your employees. When they step in after the weekend, seeing a new office can allow them to have a positive attitude. This can act as an incentive, while also motivating them to perform better.

Employee Incentive Program

These programs exist solely to improve loyalty, increase engagement and bring new talent to the workplace. Employee incentive programs can be both cash and non-cash. The rewards, such as reduced office time, casual clothes day, flexible time, tuition pay, and others can create intrinsic motivation in employees.

This can undoubtedly increase the performance of the employees. They might be excited to show up at work, rather than coming to the office with a dull attitude. This is always good for the organization.

Incentives in the workplace are vital, there’s no doubt about that. However, the way managers choose to incentivize their workplace is extremely subjective. But yes, the concept of incentives at the workplace is rising because a lot of studies are in favor of it. Incentives show that the organization cares, and they also worry about their staff. This affectionate behavior can create a long lasting connection between the employer and the employed.


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