Using Incentives for Increasing Motivation and Productivity in the Workplace

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Creating competition among employees by offering incentives will increase productivity in the workplace.

Andy Core is an expert in Work-Life Balance, Well Being, and Peak Human Performance.


When incentives are used to increase productivity in the workplace, employees often become competitive among each other. This means the employees will aim to achieve their organizational goals better than the next person does. When looking at the bigger picture, the organization benefits in the end. For example, when a few of the employees receive incentives, the rest of the workforce may improve in their efforts in order to be recognized in the same way The level of improvement in effort will rely mainly on how compelling the incentives are. The greater the incentive, the harder the employees will work.


When incentives are well thought out and well targeted, they will often help the company retain employees. No matter the form of incentive, as long as they can be compelling enough, employees will most likely develop loyalty to the firm. This means when faced with offers from other companies, employees can show loyalty even though the offer maybe more attractive than what you are offering them. This kind of loyalty definitely adds to the productivity in the workplace.


Though incentives may serve a purpose and increase motivation levels, they have limitations too. When a system is put in place where those who work the hardest will reap the most rewards, problems are most likely going to be minimal. However, because organizations are not perfect, some employees may start to develop some resentment. This is because they believe they have worked hard and think they deserve to be rewarded when they have not been.

In conclusion, incentives can improve the productivity in the workplace if they are implemented with caution.

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