What term best describes a reward used to motivate employees that can be monetary or non-monetary?

What term best describes a reward used to motivate employees that can be monetary or non-monetary?

• A. Initiatives
• B. Inducement
• C. Indemnity
• D. Incentive

Answer: (D)

An incentive is a reward given to employees to encourage them to achieve specific performance goals. It can be monetary, like bonuses or commissions, or non-monetary, such as extra paid time off, public recognition, or opportunities for development. The purpose is to create a link between performing well and receiving a payoff, which motivates behavior that supports organizational aims. Initiatives refer to programs or actions aimed at achieving goals, not rewards. Indemnity means compensation for loss or damage, not a motivational reward. Inducement is a general term for something that motivates or persuades, but in HR practice the standard term for a reward used to drive performance is incentive.

An incentive is a reward given to employees to encourage them to achieve specific performance goals. It can be monetary, like bonuses or commissions, or non-monetary, such as extra paid time off, public recognition, or opportunities for development. The purpose is to create a link between performing well and receiving a payoff, which motivates behavior that supports organizational aims.

Initiatives refer to programs or actions aimed at achieving goals, not rewards. Indemnity means compensation for loss or damage, not a motivational reward. Inducement is a general term for something that motivates or persuades, but in HR practice the standard term for a reward used to drive performance is incentive.