Incentives: characteristics, types and application on the job

What exactly are incentives and how are they applied in contexts involving workers?

Incentives are stimuli that make a person more motivated to work, to study, to perform a certain action, etc. to work, to study, to perform a certain action, etc. They are used in many areas.

In this article we will talk about incentives applied in the business sector: work incentives. We will learn about their definition, their fundamental characteristics, the different types of incentives that exist and how they work. On the other hand, we will see what functions they have in addition to that of increasing the motivation and performance of workers.

Incentives: what are they?

An incentive can be defined as anything that drives a person to improve in certain aspects or tasks. It can also be considered as a reward or a benefit after achieving something; i.e., it is something that motivates a person to do something better or faster.i.e., it is something that motivates the person to do a certain action better or faster.

Incentives can be used in different fields and disciplines (education, psychology, therapy...); however, here we will talk about incentives applied in the work environment. we will talk about the incentives that are applied in the work environment.. In this field they are also widely used, especially to achieve an increase in the performance of the person, as well as in their productivity.

That is, they are aimed at achieving better results in the organization, in addition to an improvement in the well-being or satisfaction of the worker and a better working environment. For example, an incentive would be to offer an extra economic bonus for each "X" number of sales.

Its origin

The first author who began to talk about work incentives was Frederick W. Taylor, American industrial engineer and economistTaylor, an American industrial engineer and economist, initiated the Scientific Organization of Labor movement in the mid-19th century. Taylor argued that workers' effort increased when they received incentives based on their productivity.

On the other hand, the Scientific Organization of Work created by Taylor and his collaborators alludes to a system of work organization consisting of dividing the tasks of the production processes.

This system, in fact, was typical of industrial organizations (it is understood as Taylor was an engineer), and its objective was to increase the productivity of the workers. Thus, as we have already mentioned, Taylor ended up seeing, after applying and studying his system in different conditions, that the incentives made the workers work harder and, therefore, productivity also increased.

Characteristics

Work incentives can be of different types, as we will see below. However, they all share the same objectives: to improve workers' performance and productivity, as well as their personal satisfaction within the company.and productivity, as well as their personal satisfaction within the company.

This satisfaction will translate into an increase in their motivation and will make them come to work happy; all this is in the company's interest, because, on the one hand, it is looking out for the welfare of its workers, and on the other, it is looking out for the business. In other words, it is a win-win situation for both parties.

On the other hand, not all incentives work in the same way for all workers, i.e., depending on the worker, an incentive may not work for all workers. depending on the employee, one incentive will be effective and another one will not.. Thus, while one worker may be satisfied with a salary increase as an incentive, another will be satisfied with more vacation days, and another with more social benefits, etc.

In other words, each person will benefit from one or another incentive to motivate him/her and increase his/her productivity at work. That is why the employer or the Human Resources professional must know how to to detect these different needs and motivations in their workforceThe employer or the Human Resources professional must know how to detect these different needs and motivations in his staff, in order to be able to assign to each worker the type of incentives that are most effective in each case.

Types

Work incentives can be of different types. There are different classifications, but the most generic and accepted is the one that divides them into economic and non-economic incentives:

1. Economic incentives

These are incentives that involve economic or monetary retribution. Examples of these are salary increases, extra pay, commissions, bonuses, etc., i.e., everything that involves economic or monetary retribution.... In other words, anything that involves a salary increase or extra money. These are the most commonly used incentives.

They can have an important impact on the worker, as well as on his or her productivity, especially if his or her economy is not particularly good. However, as we have seen, not all incentives work equally well for all workers.

2. Non-economic incentives

Non-economic incentives include all those measures that improve the worker's working conditions..

This type of incentive is much more varied than the previous ones, and includes a wide variety of examples (tangible and intangible), such as: restaurant tickets, contributions to pension plans, life insurance, flexible working hours, medical insurance, transport assistance, canteen or day-care services for children, assistance for further studies (training), fruit days in the office, etc.

Non-financial incentives are increasingly used by companiesand offer extra attractiveness to the working conditions of the position.

Application and functions at work

We have seen how work incentives can be of different types, and how they are not equally effective for everyone; thus, they have to be adapted to the needs and preferences of each worker in order to be effective.

But what exactly is achieved through the administration of effective work incentives? It is much more than just an improvement in worker productivity.. Let's take a look at its most important functions:

1. Boost productivity.

The main purpose of incentives, as we have been remarking, is to boost productivity by increasing worker motivation.

2. Attracting talent

However, the purpose of incentives goes much further, and they can also be very useful in attracting good profiles to the company. In addition to attracting them, they will also serve to retain them.and ensure that the workforce is competent.

3. To favor the promotion system

Incentives, by attracting good profiles, will also enhance the company's promotion system, since workers with greater potential will be promoted through these promotions, without going to work for the competition.

4. Filtering out workers who do not fit in

On the other hand, incentives also make it possible to discern and filter which workers are a better fit with the company and which are not.The employees who feel in tune with the company's dynamics and philosophy (including its incentives) are more likely to continue working for the company.

5. Improve the work environment

If employees are comfortable in the company (this is partly due to the administration of incentives), the work environment is more likely to be more relaxed, more pleasant and closer.

6. Reduce absenteeism

It has been proven that being motivated at work reduces absenteeism, sick leave, etc., and this motivation may be due in part to the type of incentives provided by the company to its employees.

7. Reducing costs and accidents at work

Finally, studies have also shown how incentives can have an impact on reducing costs and accidents at work. can have an impact on reducing costs and accidents at work in the company, in addition to in the company, as well as errors in the workers.