A STUDY ON FINANCIAL AND NON FINANCIAL INCENTIVE EFFECT ON EMPLOYEES PERFORMANCE

Abstract

An incentive is a commodity that helps or derives a person to do something or it helps in motivating people for doing their jobs. there are two types of incentives that help people motivate themselves: Financial and non-financial. A financial incentive is a type of monetary benefit given to employees to do better work in a particular area at a particular time. for example stock options, profit sharing, bonuses, etc. however non-financial incentives are the types of prizes that are not a part of an employment contract Typically, they cost the company little or no money, yet carry significant weight. As companies continue to make cuts to employee compensation, non-financial incentives for employees are more crucial than ever.