The Impact of financial incentives

The Impact of financial incentives

The Impact of financial incentives on the employees is a term having a lot of mysteries within itself. The factor of motivation is one of the very core parts behind the financial incentives. The motivation is a combination of the “Motive + Action”. The motivation is derived by a certain prospect and it is fulfilled at the very best when that prospect is fulfilled. For example, an employee is planning to go on a trip with his/her family in the coming month and he/she needs some extra money for his/her trip to Hawaii to provide his/her family with comfort. The family’s comfort level provision thought is the driving force of that particular employee and that deriving force puts the employee in a position to work hard and earn some extra money. Now when that employee works hard and gets financial incentives, which can fulfill the comfort need of that person’s family.The person will start showing more performance-oriented behavior as he/she will be motivated to work hard to achieve personal goals as well as the organizational objectives. So, to increase the engagement of employees, the employer of business provides different types of incentives to its employees. These incentives can be of different types like the flexible hours of work, paid leaves, provided with the stocks, options, and many other forms of incentives. But the main aim of this study is to find out the “impact of the financial incentives” on the employees. The type of impact can be positive and negative in nature as well; because it is not always right that the employee is in need of financial assistance for its motivation to work better. So, we are going to analyze the topic for further elaboration.