Types of incentives

Written By The HealthMeth Team - Updated On Saturday, March 13, 2021 6:00 PM

The concept of incentives

  • Motivations are defined as a group of factors that stimulate the movement forces in a person, and affect his behavior and behavior.
  • Incentives are seen as encompassing all the methods used to induce workers to work productively.
  • Incentives are defined as: all the means and factors that would motivate employees and workers to perform their duties diligently and sincerely, and encourage workers to exert the greatest over-average effort in the field of production.

Types of stimuli

Incentives in terms of their goal

In terms of their objective, incentives are divided into two parts:

  • Good performance; Incentives are given here for normal or good performance, which was required by classical management theories; Where the individual was expected to increase the normal or good performance, and if the performance levels decreased over time to reach the minimum performance, which saves the individual his job, he shall receive his salary and receive the prescribed incentives. That is, the worker may continue in his job as a result of his minimum performance, which guarantees that he will not be fired from his work. The same is the case in bureaucratic organizations, the incentives for good performance such as promotion, recognition and bonuses. Others are often decided on the basis of the individual's commitment to the prescribed performance, and he is not expected to increase, develop or renew it.
  • Excellent performance; Where the incentives here are provided to the person with excellent performance, which includes a degree of innovation and innovation, and this is what modern management trends seek, such as: the approach to management by objectives, for example, they include incentives provided by the management in exchange for excellent innovative performance in which the worker adds something new to work, such as to reach To a new method of performance that saves some time or effort, or simplifies procedures, shortens work steps, or is able to achieve cost savings, or provides the management with useful suggestions, and creativity aspects of course differ from one organization to another, and from one job to another, and from one profession to another. By identifying aspects of creativity, distinction, and innovation in light of its special field and the surrounding environment for which special incentives are provided.

Incentives in terms of their nature or (their value)

The following is a brief breakdown of these types of incentives:

Financial incentives

There are many forms of these incentives and their forms differ from one sector to another, and these incentives are represented in the material rewards, and the material monetary incentive is one of the most important incentives methods at this time. This is because money satisfies almost all human needs, and it is a reality with a tangible effect unlike other means.
In addition, financial incentives are proportional to the concept of people in the current conditions of work. Whereas, through money, you can satisfy the necessities of life, including food and housing, and money is necessary for health and education, in addition to its ability to provide the luxuries of life and social status. It all depends largely on money. Money is represented in the wage that an individual receives in exchange for the work he does, and this wage is distributed to the worker or employee in various ways, and it differs from one organization to another according to the nature of the work and the wage system followed within each organization, and we find that each of these methods has a significant impact on Motivate and push the worker to increase performance and continue to work. Among these methods are countless, for example:

  • Daily wage: However, this incentive has a flaw in that it does not give the employees or workers the opportunity to exert a higher effort because they feel and realize that they are equal in terms of outcome and wages with other incompetent employees. The opportunity for the worker or employee to reach a high level of his production regardless of time, and there is nothing that leads to the acceleration of the completion of his work until his wages increase.
  • The monthly wage: It is the wage that the employee or worker receives at the end of each month for the work he has performed during the month, according to what is agreed upon in the work contract. If the previous types represent the most common types of material wages, we will find that there are other types of incentives and rewards that are represented in different forms , for example:

1. Allowances due at the beginning of each year: They are represented by the annual increase for workers or employees, and are determined through the Labor Law, which is usually applied to all workers in the state or the private sector, and they have a maximum and a minimum.

2. Work Quality Reward: It is a grade level that gives recognition to high-quality performance, which exceeds the job performance in terms of quality and quantity of work and technical knowledge. This bonus is granted in addition to the annual increase, and the employee must spend (12) months inside the organization since the beginning of his work, which is the period required to deserve this bonus in addition to work excellence.

3. Employee’s Reward: It is a cash amount, or a prize in kind, or both of which are given to one employee of the establishment every year for his excellence and creativity at work, and for his outstanding contributions, provided that he meets the criteria for eligibility for job discipline rewards.

4. Discipline reward at work: It is a monetary amount given to a group of employees per year at the rate of one share for each sector. Among its conditions are early attendance and non-delay, presence in the workplace, non-departure during working hours, and not being absent from work except on annual vacations.

5. End of service gratuity: It is a discretionary or in-kind reward given to an employee subject to the law of retirement age upon the termination of his service due to reaching retirement age, health reasons, or death, and the percentage of this bonus varies from one institution to another.

Moral incentives

The moral incentives are considered one of the pillars of utmost importance in the incentives system that the institution establishes, without which the image of the incentives that encourage action and increase performance within the organization cannot be complete. This is because a person is social by nature and instinct, and cannot live far from the respect and appreciation of others for him.

The employee also has many non-material demands, and these demands differ from one person to another, but these demands or needs can be limited to the need for security and belonging, social standing, and good relations with his superiors, and his colleagues as well in their need for respect, whether this is respect for himself or the respect of others for him; And that until he develops a sense of confidence, ability and competence, and on the contrary, the lack of these needs may generate a sense of weakness, helplessness and frustration.

The moral incentives that go beyond the financial aspects are also important in motivating workers. Examples of moral incentives are :

  • Involving workers in setting goals and increasing their role and interaction with the organizations in which they work. Officials must realize the importance of employees ’feeling and look at ways that enable them to satisfy the desires of workers that, if achieved, contribute to an increase in employee motivation. In this direction, this method contains three steps:
  1. Defining goals at all levels with the participation of workers and at the administrative level in which they work in setting these goals.
  2. Setting dates for the achievement of the specified goals, so that these deadlines, which were originally agreed upon, are respected with the participation of all and within the known data.
  3. Follow-up and feeding back to the level of the achieved performance and acting on that basis.
  • Recognizing the effort of employees: Many workers give importance to recognition of their efforts, and this is considered an important incentive to make additional efforts at work, and examples of possible applications of this motivational method include giving various moral rewards to workers such as: naming the ideal employee or presenting other moral symbols, such as making celebrations Or giving paid vacation leave, or giving thank-you letters or medals or any other forms that differ from one organization to another organization, and from one state to another, as well as the method of encouraging employees to submit proposals for the development of work, and rewarding the owners of the suggestions that are applied, And the participation of representatives of workers with management in decision-making, and all these methods are aimed at increasing the loyalty of workers to make the utmost efforts on their behalf in sympathy for their participation being a moral incentive without the slightest effort from the higher management.

Many studies and experiences that officials have taken in various work and production sites have proven that there are incentives other than material incentives, which have a significant impact on employee motivation or increase his attachment to work, represented by the moral incentives. Such as praise, encouragement, and the names of those who are honored in honor plates, and certificates of appreciation.

Moral incentives have many forms, of which we mentioned part in the previous introduction, and through the following points we will clarify pictures of these incentives, but in the institutional framework:
  1. Service Duration Reward: It is a reward given to long-serving employees who are credited with developing the work of the institution, or who represent the ability, activity and seriousness of others. It is awarded in a formal ceremony.
  2. Letters of Appreciation and Appreciation: A letter of appreciation is defined as: a written appreciation for recognition of a specific work or service worthy of appreciation, as well as a letter of praise for a written appreciation for work that goes beyond the normal requirements of official duties.
  3. Praise and reprimand: It is to praise and praise individuals for performing the correct and right actions, and directing blame and reprimand for people when they perform incorrect duties or improper actions.
  4. Social facilitation: competition exists when individuals work alone, or in groups, and there must be an atmosphere for competition within the institution, but in a legitimate manner and it is called positive competition.
  5. Psychological motivations for work: The employee feels secure about his health, work, future and children, away from fear and surrounded by various forms of social insurance against work accidents, occupational diseases, old age, unemployment and death, and this has a great role; Where this is reflected positively on the performance of the worker. Because feeling security is a necessary condition of a healthy mental health, and if the security of the individual is the basis of his psychological balance, then the security of the group is the basis of social reform, and research has indicated the relationship of material and moral incentives to the mental health of the worker and increase his production, a relationship that has positive images.
  6. Social motives for work: That the individual be appreciated and respected by others, have his social standing and free from ostracizing society, that is, the individual has the feeling that he has social importance, and that his presence and efforts have value and influence on others; This is because social appreciation enhances a sense of security and increases the desire for teamwork.
  7. Action and need for recognition: these are called achievement needs; Because it involves forming relationships with others, and includes: love, contentment, acceptance, health, companionship, and social standing.
  8. Work and the need for self-realization: What is meant is that a person directs all his potentials and energies, and seeks to exploit them within work, in order to reach them for his aspirations and desired goals, that is, he puts them in the place of achievement, and this need is considered that drives the individual to express himself, prove his personality, and perform useful work Of value to others by doing his assigned work.
  9. Achievement motives: The worker feels that he has the desire to assert himself in his work through the improvements, innovations, and inventions he offers. That is, his feeling and feeling that what he is doing is consistent with the aspired goals of his country and that the Foundation seeks to achieve.
  10. Motives for stability: that is, the industrial workers need to feel stable at work, and that there is fair treatment and no discrimination in terms of promotion, or entitlement to an increment, as well as stability in terms of the future and what happens to them in the event of a work injury, or in the event of any disease.

Incentives in terms of related parties or (beneficiaries)

Individual incentives

They are the incentives that focus on creating a spirit of individual competition, which are given to a specific individual to double performance, or as a reward for his outstanding production, and this creates an atmosphere of competition between individuals.

Individual incentives are what an individual obtains as a result of accomplishing a specific work, and examples are: promotions, bonuses, and bonuses.

Individual incentives may be positive or negative, material or moral, so the worker takes an incentive reward for his excellent work, and gets his boss’s appreciation in the form of a praise or a letter of thanks, or a participation in making a decision, or solving a specific problem, and individual incentives exist to satisfy a group of needs when Individuals, whether psychological, social or material.

Group incentives

These incentives focus on group work and cooperation between workers, such as benefits in kind, health care, and social care, which may be directed to a group of individuals working in one administrative unit, or one department, or one department to motivate them to improve and raise the efficiency of performance and productivity. Group incentives are positive or negative, material or moral.

The collective incentives aim to satisfy the psychological, social and material needs of the members of the same group. Such as the needs of belonging, loyalty and appreciation of others, and collective incentives contribute to increasing cooperation between individuals, strengthening bonds, stirring up competition between them, and increasing their desire to achieve the common interest and common goals. The more fair these standards are, the more members are willing to work to obtain the available incentives, but if they find that they are unfair or tainted by favoritism, or personal preference, then they feel injustice and that their efforts are lost among the group, so their need for respect, appreciation and self-affirmation remains incomplete or frustrated, which is what It leads to their frustration and distraction from contributing to the team effort.

Incentives in terms of their impact or (in terms of their effectiveness)

Positive incentives

It carries various advantages for the individual if he performs the required work, and offers him a tangible or intangible bid, and depends on desire, hope and optimism. These incentives are included in all material and moral temptations when increasing production or improving its level, and it is considered one of the best methods of mobilizing working individuals in most cases. Because they create a healthy and appropriate climate in the surrounding work conditions, and because they are diversified to include the largest segment of workers.

And positive incentives develop the spirit of creativity and innovation at work among workers, because they are compatible with the desires of the worker, leaving some positive results on the course of work, such as the incentive of the monetary reward that is given to the worker in exchange for performing a work that requires appreciation.

The main objective of this type of incentives is to encourage working individuals, and to urge them to create the desired behavior. The best example of this type of incentives is: basic wage fairness, granting exceptional bonuses to the efficient, and work stability and the individual’s stability in his work. Positive incentives have a tangible effect in strengthening the link between motivation and performance, and the use of motivation when the worker achieves an outstanding and good achievement necessarily leads to continuing to achieve more achievement in performance, and these incentives are effective and effective when used immediately after the worker performs the required behavior, so the reward , for example, is not Be able to positively influence behavior unless two conditions are met:

  1. That the incentives are conditional and dependent on the quantitative rate of performance and its qualitative level, so the higher the production is and the more good the size of the incentive increases accordingly.
  2. That the incentives lead to the satisfaction of specific needs that the worker feels the need to satisfy. If the incentive is not able to satisfy the needs and desires of the workers, then he loses his motivational ability and its usefulness is almost non-existent.

Negative incentives

It aims to influence the behavior of workers through the method of punishment, intimidation and discipline represented by material penalties; Such as deduction from pay, or denial of bonus and promotion.

The negative incentive includes a type of punishment, and this punishment makes the person afraid of repetition of the mistake in order to avoid punishment as an incentive not to fall into the error and offense, and from the practical point of view, the negative incentive does not motivate the worker to work but rather warns him, and does not motivate cooperation and does not teach performance, but teaches how That the worker avoid punishment, and how the worker avoids the situations that fall into punishment without abstaining from work; Fear of separation, for example, is a method of control and control that is not negative from the psychological point of view, and thus does not lead to the maximum energies of the individual who usually performs the work to the degree that does not expose him to dismissal.

The negative incentives are mainly intimidation, or the threat of punishment, or other factors of an obligatory or positive character that try to force individuals to act in a certain way, otherwise they will be subject to punishment, and the most prominent forms of this punishment are: the threat of dismissal, or a reduction in salary, Or deprivation of leave, or transportation to a remote and undesirable place.

Many managers see that punishment or threat is an effective tool to achieve obedience and loyalty on the part of workers, and this may be more useful than other means, and a strong incentive to correct the individual for his behavior, but the punishment or the threat of it may be a cause of fear of the individual to a degree that cannot respond positively to the instructions The proposals grow and has inappropriate tendencies about work.

It is taken with intimidation and punishment that includes negative incentives to force individuals to refrain from unwanted behavior, and not with the aim of enticing to a specific work, and it may contribute to raising productive efficiency, but it may leave negative effects on the souls of workers, which creates a feeling of frustration towards work; That is why the subordinates must take into account the size of the punishment, and that the punishment be commensurate with the behavior it caused.

Negative incentives strike a balance in the motivation process , as they remind employees that, just as they are rewarded for excellent performance, they are punished for poor performance. Employees ’avoidance of punishment may also lead to the acquisition of proper methods of job behavior and performance, but it may have some negative effects, especially if the administration does not improve the use of negative incentives, or if the bosses overuse it, so it is good management that gives priority to positive incentives and expands the areas of their use. , And clearly defines the necessary behavior to obtain it, and presents it to the workers in a timely manner, i.e. when they perform this required behavior.

There are several harmful effects of intimidation and punishment, including:

  • The imposition of punishment on workers without explaining its reasons may generate fear in them, which puts the specter of punishment in front of them always.
  • Punishment may lead to a lack of cooperation between workers and may make them afraid of making mistakes.
  • Inflicting punishment on the individual makes him always hesitant, and he feels fear and not taking any responsibility at work for fear of making mistakes.
  • Foundations for granting incentives: Granting incentives must be based on a set of foundations in order to achieve the desired goals, and not be a cause of adverse results for employees in particular, and for the organization and its performance in general, and these foundations can be summarized as follows :
  • The reliance of the incentive on the behavior: This means that the incentive comes on the impact of a specific behavior, and this requires that organizations have policies and incentives rules that explain when and how the employee can obtain the incentive, whether the incentive is positive or negative, and that the employees are aware of these policies.
  • Timing: This means that the stimulus comes directly after the behavior. Because the longer the period between behavior and motivation, the relationship between them becomes ambiguous and contradictory.
  • The size of the incentive: This is related to the small or large of the incentive, and the small and the large, relative terms, but what is meant by (the reward of the type of work) that is, the amount of the work, and the incentive may become useless if the employee does not know through the incentives policy and rules of the organization what he should do To obtain the stimulus of a certain type and a certain method.
  • The type of incentive: there are many types of incentives, including material, moral, positive, negative, internal and external incentives, and the important thing here is for supervisors to identify the incentives that most affect the employee who wants to motivate him.
  • Consistency: which is equality in applying the incentive, if an employee does a new job and gets a reward as a result of that work; It is normal for any employee to receive the same reward if he did the same work as the previous employee (justice is the basis of judgment)


Motivations are considered to be a variety of factors that aim to arouse strength and motor conflict in the individual; As the incentive is considered one of the essential elements important to influence the behavior and behavior of the individual, business owners usually view the incentive as the tool and method that is used in order to obtain a fruitful and distinctive job from workers. Incentives also have goals, including good performance, which is for the individual to perform his work to the fullest, due to his feeling of enthusiasm and often following an incentive offered to him, and among the objectives of incentives also: Excellent performance, which may lead an individual or worker to creativity, innovation, and the constant pursuit of overcoming obstacles, as well as material types of incentives, which are represented by material rewards or something of material value, or moral incentives, which are the administrative respect for his workers and their appreciation for their efforts So the workers are happy, and give everything they have to achieve the goals and objectives for which they are working, and this is considered an incentive.