Boosting Performance and Innovation through Incentives

Running head: Managing people
Managing People

Managing people
The optimal way to increase innovation and performance is through incentivized (i.e.,
bonuses) goal setting.
It can be stated that one of the best way that can help in innovation and performance is
through incentives or the goal setting. It is considered as one of the effective approach that
assists in boosting the performance and also the innovation among the employees. It is important
for the management to emphasize on incentives as it positively affects the morale of the
employees. Yes, the statement that relates to “Incentives can boost the innovation and
performance” is true. In the present era, the motivational factor emphasizes on the monetary
incentives and it is one of the essential aspects that are considered by the employees. It is
evaluated that monetary incentives rewards the employees for performance and productivity by
giving them incentives in the form of bonuses. There are also other incentives such as stock
options, profit sharing plans and also paid time off. But it can be argued that bonuses can be one
of the monetary incentives that motivate the employees to give their best towards the assigned
work (Ruckes & Rønde, 2015).
According to the UK based Genesis Associates, 85% of the employees surveyed that
they are motivated by the monetary incentives that are offered to them in the workplace.
Incentives such as bonuses influence and motivate the employees towards the activities for long
time and also it helps the employees to showcase their efficiency in relation to the allocated task.
It has been examined that rewards and incentives offer benefits to the employees and employer.
It is analyzed that monetary rewards the workers for the performance and also for the
productivity that if offered by bonuses or with the monetary incentives. The monetary incentives
consist of the annual and semiannual bonuses like mid-year and end of the year rewards that are
provided to the employees. These are the rewards that encourage the friendly competition among
the team members in relation to the overall performance of the job. Monetary rewards assist in
motivating the employees to produce optimally (Kuvaas, Buch, Gagne, Dysvik & Forest, 2016).
It can be stated that incentives act as the promise that emphasizes on greater action. It is
also known as the stimulus in relation to greater performance. Incentives are the monetary value
that is provided to the employees when they performance well in comparison to the other
employees in the workplace. It is important for the management to focus on giving the incentives
to the workers so that they can be motivated and also focus on maintaining the higher
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Managing people
performance. In the workplace, it is necessary to implement effective incentive policies so that
dedication level of the employees can be boosted. But on the other hand, it is argued that how the
incentives boost the innovation and performance of the employees in the workplace. Incentives
have a direct connection with the performance and innovation of the employees. When the
incentives are offered it creates positive attitude of the employees towards the allocated task.
Incentives create positive feeling through which they start engaging themselves towards the
organizational operations. The engagement level is enhanced and also employees start sharing
their innovative ideas with the higher authorities (List, Livingston & Neckermann, 2018).
It can be stated that monetary incentives are the chief source that satisfy the basic
requirements of the people. It is also useful in satisfying the social requirements by considering
the different items. The incentives offered to the employees not only fulfill the psychological
needs but also the security and social needs of the employees. There are many companies such as
Tesco and Wal-Mart that focuses on offering the incentives to the employees so that performance
can be enhanced and also it helps them in offering innovative ideas (Shaw & Gupta, 2015).
It has been examined that employee incentives has an important role in retaining the
employees and this is one of the essential aspect that emphasizes on boosting the performance of
the employees in context to the assigned activities. To boost innovation and performance, it is
necessary for the employers to offer incentives to promote the positive attitude among the
employees. For example: If the employees attain the set targets then they should be offered a
particular amount so that it could be possible to give their best towards the goals of the company
(Rode, Gómez-Baggethun & Krause, 2015).
It is agreed that incentives boost the performance and also the innovation among the
employees. But it is necessary for the management to satisfying the basic needs of the employees
by considering Maslow hierarchy of needs theory. This is one of the motivational theories that
emphasizes on satisfying the needs that are necessary for survival. It has been examined that in
Maslow hierarchy of needs theory wages are considered as the major part of the deficiency needs
which means that they serve as the overall measure of security and also focuses on fulfilling the
needs of the employees. It is necessary for the management for the higher authorities to
maximize the needs of the employees as it can assist in motivating the employees to give their
best towards the allocated work (Mazzei,Flynn & Haynie, 2016).
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