Incentives and Rewards
Zhao Na
What is incentive?
Incentives are benefits that are promised to employees to
motivate them to achieve their best and to improve their behavior,
productivity, and output continuously.
Incentives are granted to workers that perform below par, and to
encourage them to achieve the desired level of performance or
set goal.
In terms of education management, incentives are the direct and
indirect benefits offered to teachers as intrinsic motivators. Put in
other words, they are the application of additional inputs that
shape the education process to achieve the eventual outputs of
education in desirable ways.
The aim of an incentive is
to motivate and encourage
employees to achieve
desired performance,
efficiency, and levels of
output.
3 Non-monetary incentives
Types of
incentives 2 Indirect monetary incentives
1 Direct monetary incentives
Types of incentives
1. Direct monetary incentives refer to salary and
allowances that employees receive for their work.
The most direct and effective way to increase the
number of graduates entering teaching and to
encourage those already in teaching to remain as
teachers is to increase salary to a level that makes
teaching more attractive than alternative career options.
e.g. accepting a three-year teaching assignment in a
remote area
Types of incentives
2. Indirect monetary incentives include all the other
financial resources offered to employees.
These might include:
a) professional support such as initial and ongoing
training, teacher guides, resource books, instructional
supervision; and
b) personal support such as free and/or subsidized
housing, food and transportation.
Types of incentives
3. Non-monetary incentives
effective incentives include public recognition, respect
from peers and supervisors, and promises of
preferential next assignments.
Importances of incentives
01 Increase productivity
02 Drive or arouse a stimulus work
03 Enhance commitment in work performance
Psychologically satisfy a person which leads to job
04 satisfaction
05 Shape the behavior or outlook of subordinate
towards work
06 Inculcate zeal and enthusiasm towards work
What is reward?
A reward is a benefit that is provided in recognition of
achievement, service, commendable behavior, etc. A
reward is given to an employee only after he / she has
provided evidence of his /her positive behavior and
achievements.
Like a child being given a chocolate cupcake and a big
hug after cleaning her room, rewards can be powerful
tools for employee motivation and performance
improvement.
The aim of a reward is to
show the employees that
their work and effort are
valued, and is given as an
appreciation for the work
already completed, as well
as a motivation to keep
improving their quality of
work.
The main difference - time line
You offer incentives before work starts and offer rewards
after the work is completed.
You give rewards to employees who already perform well
while offering incentives to employees who aren't yet up to
par.
The reward is the prize that you give your employee as a
result of offering the incentive program, so in a way the
incentive is a cause and the reward is an effect.
Types of rewards
1. Extrinsic rewards: Concrete rewards that employee receive.
Bonuses: usually annually, bonuses motivate the employee to put in all
efforts during the year to achieve more than a satisfactory appraisal
that increase the chance of earning several salaries as lump sum.
Salary raise: is achieved after hard work and effort of employees,
attaining and acquiring new skills or academic certificates and as
appreciation for employees duty (yearly increments) in an organization.
Types of rewards
1. Extrinsic rewards: Concrete rewards that employee receive.
Gifts: are considered short-term. Mainly presented as a token of
appreciation for an achievement or obtaining an organizations desired
goal.
Promotion: tends to effect the long-term satisfaction of employees. This
can be done by elevating the employee to a higher stage and offering a
title with increased accountability and responsibility due to employee
efforts, behaviour and period serving a specific organization.
Types of rewards
2. Intrinsic rewards: tend to give personal satisfaction to
individual
Information / feedback: This type of rewards offers guidance to
employees whether positive (remain on track) or negative (guidance
to the correct path).
Recognition: is recognizing an employee's performance by verbal
appreciation. This type of reward may take the presence of being
formal for example meeting or informal such as a “pat on the back” to
boost employees self-esteem and happiness which will result into
additional contributing efforts.
Types of rewards
2. Intrinsic rewards: tend to give personal satisfaction
to individual
Trust/Empowerment: in any society or organization,
trust is a vital aspect between living individuals in
order to add value to any relationship. This form of
reliance is essential in order to complete tasks
successfully. Also, takes place in empowerment
when managers delegate tasks to employees.
Types of rewards
Intrinsic rewards make the employee feel better in
the organization, while extrinsic rewards focus on the
performance and activities of the employee in order
to attain a certain outcome.
When rewarding one, the manager needs to choose if
he wants to rewards an individual, a team or a whole
organization. One will choose the reward scope in
harmony with the work that has been achieved.
a. Individual
• Base pay, incentives, benefits
• Rewards attendance, performance, competence
b. Team: team bonus
rewards group cooperation
c. Organization: profit-sharing, shares
Length of Reward Program
The length of the employee rewards program has an
impact on employees' subsequent performance. In
general, the longer the implementation of an incentive
program, the greater the performance gains:
• Long-term incentive programs (last longer than 6
months) increased employee performance by 44%
• Intermediate length incentive programs (last 1-6
months) increased employee performance by 30%
• Short-term incentive programs (last less than 1
month) increased employee performance by 20%
Importance of Rewards
01 Attract talented employees
02 Motivate employees to perform optimally
03 Foster personal growth and development
04 Increase employee satisfaction with their work
05 Keep talented employees from leaving
INCENTIVES REWARDS
1. Is given before the performance of the 1. Is given after the expected job is done
job
2. The idea is to encourage better 2. The idea is to show appreciation to
performance from workers who may the employee, to encourage him/her to
not be meeting desired goals continue achieving
3. When incentives are working, they 3. The rewards may come after incentives
may come to produce rewards at the program, hence they are effects of
end, hence causes of rewards. incentives.
4. Incentives may be provided but still, 4. Rewards may be terminated, hence
work may be not done, hence plan results to job dissatisfaction.
with risk Performance may decline.
5. An incentive is an encourage to 5. Once the employee meets the
perform better, as it is offered before expected goal the incentives becomes
predicted performance a reward in which the employee gets
6. Incentive are granted to worker that the promised benefit
perform below par, and to encourage 6. A reward is given to an employee once
them to achieve the desired level of after he/she has provided evidence of
perform or set goal his/her positive behaviour and
7. Example of incentives includes, achievement.
recognition to workplace, provision of 7. Example of rewards are cash, gift
work security certificates or even just a pat on the
back to say “great job”
Conclusion
Rewards and incentives are used within the
workplace for motivation, to improve morale, increase
productivity, and encourage workers to contribute their
best quality of work.
Rewards and incentives are beneficial to both
employers and employees as it facilitates the creation
of a positive work environment.
Incentives and rewards are not only important means
for education managers to seek to shape teacher
behavior, but also effective tools to improve the quality
and efficiency of education.
THANK YOU
