Question

Discuss the importance of incentive-based pay in the workplace. In your reasoned opinion, is incentive-based pay a strong employee motivator? Are there stronger motivational factors?

Answer 1

Incentives refer to something which is introduced by the organization to the employees to motivate or encourage them to do the work more perfectly. Incentive-based pay is very important in every organization and they are described as follows:
1. Promotes teamwork:
In case, incentives are offered based on the teams and their work, it motivates them to work with full cooperation and promotes teamwork among them. Each person will motivate others to perform well and improve their performance.
2. Increase job satisfaction among employees:
If they are provided with proper pay and also with incentives, they will feel more satisfied and it encourages them to work to their fullest.
3. To do more work:
If they are provided with incentives based on their performance, it motivates them to perform well at the next time also. Thus they will work more and increase productivity.
4. Creating a feeling of selflessness:
As they get encouraged and motivated, they will have a feeling of selflessness with the organization. They will work hard to improve the performance of the company and try their level best to take the company at its peak.
5.Creating a willful mind to accept challenges:
When they have a mind to work at their level best, they are also ready to accept any challenges and bring their organization into a better position. It also positively affects their working career.

Yes, incentives are considered as a strong motivating factor. As per an employee's considering getting an extra pay increase his loyalty and create a sense of contributing more than what he can towards the organization. This also enables the organization to take up more challenging projects as employees are ready to do that by expecting a return. So we could say that incentive-based pay is a strong motivating factor.
The other stronger motivational factors are:
1. Recognition:
Giving recognition or applause for the good work done by an employee will be stronger than incentives.
2. Responsibility and authority:
By increasing the authority of employees and giving more responsibilities to them will motive them and create a feeling of belongingness.
3. Good working environment:
Employees will always have a positive vibe when they are working in a good business environment this will reduce employee turnover and increase loyalty towards the organization.