The Impact of Incentives on Employee Productivity: Review of Past Literatures

Irmohizam Ibrahim and Norhasni Zainal Abiddin

Journal of Business Administration Research, 2023, vol. 12, issue 2, 19-28

Abstract: Employee productivity is a key component of an organization's success and expansion. The use of incentives can greatly improve staff motivation and productivity. This study aims to explore how incentives affect workers' productivity. It will examine the relationship between incentives and productivity, as well as the impact that various incentives have on productivity outcomes. It also emphasizes how crucial incentives are for boosting employee motivation and increasing productivity in businesses. Incentives can come in a variety of forms, including cash payments, bonuses, accolades, and non-cash benefits. The type and form of incentives, work happiness, motivation, and job design are only a few examples of the variables that influence the relationship between incentives and productivity. Employees should view incentive programmers as fair and equitable, and they should be routinely reviewed and altered based on feedback and performance statistics. Effective incentive programs should also be in line with organizational goals. According to the past studies, incentives have a favorable effect on worker productivity across a range of sectors and situations. In general, incentives have a substantial impact on employee productivity and organizational performance. To maximize the impact of incentives, organizations should properly plan and manage their incentive programs.

Date: 2023
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