Giving incentives (incentive travel, incentive activities, cash incentives, gift checks) is part of employee motivation and retention programmes. Usually, they are meant for the organization’s top performers. While everyone in the company gets money for their work, giving incentives is a way to show special appreciation for the most diligent and prolific ones. Incentives work on the psychological level and have a great positive impact on employee emotions which motivate them for further achievement.
According to the well-known Behavioural Model proposed by psychologist B.F. Skinner, the possibility for an individual to fully realize their potential depends on whether their psychological needs are satisfied or not. To put it in simpler words: happy employee is a productive employee. One of the fundamental human needs is the need for recognition.
The need for recognition is closely intertwined with man’s role in society. Driven by the need for self-realization and self-contentment, we look for ourselves in various social groups and organizations. However, one must admit that the mere feeling of self-fulfilment is not enough: whatever we do, we must feel noticed and recognized by others.
Recognition defines our role and importance in a social group we belong to. It shows that we are accepted and appreciated. Recognition makes us feel part of the group (the feeling of belonging is a social need also named as fundamental in Skinners Behavioural Model) and stronger as individuals.
Employee incentives are part of communication process taking place between staff and their employers. Any act of communication between two or more interlocutors is impossible without feedback. Incentives, in this case, are a kind of feedback on the part of employer in employee - employer communication.
Our decisions and actions are decided by many psychological factors. Bearing this in mind, employers can shape the behaviour of their employees (i.e. increase motivation and thus productivity) by giving incentives. Staff incentives satisfy the human need for recognition; moreover, positive evaluation encourages them for greater aspirations and deeds.
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