What is an incentive?

When we talk about this term, we are referring to a general concept that alerts us to the urge to want or do something. Specifically, the incentive is what drives us to want or do something, whether it be something real (monetary or in kind) or something symbolic (something representative for exchangers).

When we are typecasting the term in the realm of economía, the incentive is the stimulus carried out by a person, company or sector with the objective of increasing production or improving performance. In this way, we find, for example, monetary incentive for workers, incentives to cut impuestos, etc.

Stimulation, in certain aspects, can be a reward that is given to a person as a good performance of the activity they have done (usually for work reasons).

Incentives can be of different magnitudes or levels: we find those that are made to achieve certain returns or objectives, or those that are directly given to be able to reward a certain attitude or the fact of having reached certain goals.

It is worth mentioning a fundamental aspect of incentives, and it is the incentive program (PDI). It is a program that systematically tries to improve the environment and performance of a company through the incentives offered to individuals and teams. Among the main objectives we find: the promotion of actions, directing the participants (workers of a company) towards a specific goal, integrating certain strategies to motivate staff, etc.

The PDIs can be used to measure certain returns, by integrating these incentives. In this way, we can know how much the productivity or performance of a certain job. For this, it is important to mark well the specific goal that you want to achieve, as well as to set good objectives to obtain good results.

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