10 Effective Incentives to Boost Employee Motivation and Productivity

July 5, 2023
Sheetal S Kumar
Sheetal S Kumar
Sheetal S Kumar
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Table Of Contents

Let's raise a very basic question: How important is employee motivation? 

Well, even with not much external influence, employees will turn up for their job and get their work done. 

So why invest time and energy in thinking about employee motivation? 

Stop right there! Never think in that line! 

In an article titled  U.S. Employee Engagement Needs a Rebound in 2023, Gallup found three interesting facts. 

  1. There was a drop in engagement in young workers, women, and onsite workers looking for remote jobs. 
  2. There was an increased phenomenon of quiet quitting among remote workers.
  3. There was a fall in clarity in job expectations. 

What do these findings suggest to us? The importance, relevance, and priority of employee motivation in employee management. 

But how do we achieve that goal? 

Simple, a well-structured, planned, and executed employee incentive program. 

This article takes you through a comprehensive understanding of employee incentives, their types, and 10 effective incentives to motivate employee performance.

So scroll down for more. 

What are Employee Incentive Programs? 

An employee incentive program, including various types of incentive compensation, is a motivational tool that ensures consistent performance and productivity of the workforce. It is a positive reinforcement that encourages employees to improve in their job, enhance employee engagement, and reduces turnover.

Through incentive programs, organizations create an employee-centered workspace and bring in best practices in them. It provides opportunities to grow, drives the workforce to achieve their goals, and recognizes them for their achievements.   

Types of Employee Rewards?

Organizations incorporate various tools and techniques to boost employee motivation and keep their workforce up for any challenge. 

Broadly employee rewards can be divided into monetary and non-monetary. Both these incentive forms have the capacity to push the employees to achieve their goals as well as strive to upskill for better performance. 

Monetary Rewards- These are variable pay in a salesperson’s salary that they receive upon achieving their sales quotas as part of the sales compensation plan. As these rewards are in the form of cash, salespersons can utilize them judiciously according to their better judgment, aided by a sophisticated sales commission calculator for accurate and transparent calculations.

Non-monetary Rewards- these are types of rewards that do not involve money but have a longer positive effect on the workforce. A paid leave, a vacation, or a word of appreciation can perform a greater feat in the employee’s performance, engagement, and confidence than any money can. Additionally, implementing effective training programs, such as those involving sales battlecards, can significantly contribute to employee skill development and motivation.

An ideal incentive program makes use of both monetary and non-monetary incentives, according to their organizational structure, agenda, budget, objectives, etc. 

Knowing your organization and your employees' needs will help companies build a better incentive program. 

For a more comprehensive understanding of how to motivate employees with incentives and to go about with incentive compensation, check Understanding the Basics of Sales Incentive Compensation

Now let’s delve into how these monetary and non-monetary incentives can be implemented in your company operations. 

10 Effective Employee Motivation Rewards

Now, let's delve into the various incentive ideas to motivate employees for best practices and desired results. 

  • Performance Based Incentives

Most organizations reward their employees based on performance, using a set of metrics, KPIs, and an efficient saas commission calculator to evaluate the productivity as well as the improvement achieved by their workforce and identify disengaged employees.

Based on these analytics, organizations can utilize individual incentives to further motivate employees' performance and drive desired outcomes.

  • Referral Programs

Referral policies are an efficient way to engage the workforce in the hiring process. The policy considers your employee as a brand ambassador of the organization who uses their network to bring in the required skill set to the team. Along with monetary gain, it also brings a sense of belonging in the employee where their opinions and participation are valued. 

  • MBO Bonus

In a Management by Objectives (MBO) model, both the manager and the employee are well aware of the set of goals to be achieved, and the inclusion of MBO incentives further motivates the salesforce to be better informed of their targets and prepare well to achieve their goals timely.

  • Profit Sharing

Incentive compensation management is not always paid in cash. It can be in the form of profit sharing as well. Upon fulfilling their sales quotas, salesforce becomes eligible to get a portion of the profit. The profit share depends on the company policy and the agreement. 

  • Appraisal Cycle 

It's not always money that motivates employees. Some are looking for progress in work and positions. Hence, employee motivation and rewards can also take the form of appraisal where employees get promoted in their job, they get training to upskill their potential as well as be eligible for a yearly hike in salary. 

  • Recognition Programs 

Being recognized for your work and achievements is necessary for any employee to continue their strive for better performance and productivity. It creates a vigor in the workforce to work towards getting that validation and appreciation. In the end, who doesn't like a word of congratulation and a pat on the shoulder!  

  • Vacation Offers

Many organizations also offer vacations to their employees on achieving their targets and for good performance. It is of dual purpose. First, it motivates the employee to work hard, achieve their quotas and be eligible for the offer. Second, the vacation gives time off from work where the employee can freshen up, get rejuvenated, and come back for better performance. 

  • Paid Time Off 

It is by law that every employee must be entitled to a fixed number of paid leave. Even though this rule exists, organizations must also encourage employees to avail their employee rights and take time off. It neither hinders their workflow nor interrupts everyday operations. Rather encouraging employees to take breaks from work will only improve their productivity and the growth of the organization. 

  • Valuable Gifts 

Organizations reward their employees in various ways. These days companies give valuable gifts like bikes, and electronic gadgets including mobile phones, laptops, etc. Getting these rewards is a great feat for any employee which will only improve their commitment and dedication to the work and organization. 

  • Voucher Cards

Gift cards or voucher cards are another way to reward your employees with something memorable. As an equivalent of money, employees can go to particular stores to buy things of their interest. These initiatives give a sense of achievement as well as happiness in them.

With a variety of tools and techniques available to keep the workforce motivated, organizations must use their creativity and strategy to make the best use of it. 

To read more about the impact of incentives on productivity and its benefits, check Maximizing Productivity: Benefits of Employee Incentive Programs


Big or small, recognitions and rewards are valuable in an employee's career and compulsory in an organization. 

Organizations must create an environment where employees are celebrated and appreciated for all their milestones. Rewards have a huge impact on their motivation, focus, commitment, dedication, engagement, participation, confidence, sense of belonging, and many more. 

Efficiently tracking their performance and managing their incentives helps companies make a huge difference in organizational growth and employee wellbeing. These days digital tools have made this crucial task seamless. 

Kennect supports organizations in incentive compensation management and sales performance management through automation to create transparency and achieve operational efficiency. For more information, Book A Demo Now! 


Sheetal S Kumar

Sheetal is a content strategist and writer at Kennect. She has extensive writing experience in content marketing and research, focused on small business enterprises and B2B Saas. She is passionate about creating engaging and insightful blogs while exploring the power of content and social media.