Incentive programs are given to deserving employee’s or students in exchange for their above and beyond performance of their duties. This can be given either by money or any material gift or by recognition.

Incentive programs are considered an important factor that can influence the success of a company through employee satisfaction and improved drive and motivation, as it is also a tool that can help in the reaching of not just business goals but personal professional goals as well. Incentive programs help boost the morale of workers and imbibe a continuous, positive attitude and a healthy yet competitive working environment.

Monetary incentives are definitely welcome among rank and file employees belonging in the lower income bracket, since these are tax-free giveaways from the company in exchange for an above-par performance. But what can management do when the top performing client is uninspired and is not after monetary incentives, since the amount he or she earns is more than enough? The answer to that is a promotion incentive.

This is because some people put more importance on the role - the presence of a clear, validated and institutionalized role - an individual plays in a company or group. This role is given to an employee through the designing and implementation of a promotion incentive system.

Award programs provide numerous categories for the awards they hand out to employees. Some, like awards for milestones in service tenure, will take a long time and require dedication and loyalty. Still, there are awards that do not take very long to accomplish, including annual awards for performance-based recognition.