Incentives

In general, incentives are anything that persuade a person to alter their behaviour. It is emphasised that incentives matter by the basic law of economists and the laws of behaviour, which state that higher incentives amount to greater levels of effort and therefore, higher levels of performance.

An example of incentive is extra money offered to those employees who work extra hours on a project. Serving to induce or motivate. An incentive bonus for high productivity. Something, such as the fear of punishment or the expectation of reward, that induces action or motivates effort.