A scheme, usually found in industry but not unknown in commerce. whereby employees are offered benefits (usually monetary) as a reward for increasing efficiency by their own efforts. Where the non-productive work-force is concerned, i.e. persons whose efficiency cannot be directly related to output, the incentive may take the form of a special bonus determined by overall profit. Most incentive payments are now covered by productivity deals or agreements.
Reference: The Penguin Business Dictionary , 3rd edt.
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