Glossary
Incentives
Meaning & Definition
Incentives are the rewards offered to employees in order to make them attain certain objectives or performance targets. These incentives may be either monetary or non-monetary and are intended to serve the purpose of motivating employees to work more productively.
Why Incentives Matter?
- Motivates employees to work harder and meet their goals.
- Increases production and efficiency within the workplace.
- Increases job satisfaction among employees.
- Improves healthy competition in the organization.
- Assists in retaining high-performing employees.
Legal Considerations
Incentives are associated with:
- The Payment of Bonus Act, 1965 (eligible bonuses).
- The Income Tax Act, 1961 (financial incentives are taxable income).
There should be clarity regarding policies, eligible beneficiaries, and conditions for payment of incentives.
