What is incentive?

Incentive can be defined as something that is used to motivate or encourage someone to take a certain action or achieve a specific goal. Incentives can take a variety of forms such as monetary rewards, recognition, promotions or even non-monetary rewards like extra holidays or a flexible schedule. Companies use incentives to promote desired behaviors in their employees such as increased productivity, improved quality of work, higher sales targets, or achieving set goals. Incentives are also used by governments to promote certain economic activities like investments in research and development or setting up businesses in certain regions. Overall, incentives play a vital role in motivating individuals and organizations to achieve their goals and drive performance.