The effectiveness of any bonus or incentive scheme depends on an awareness of the factors needed for success and an understanding that individuals may respond differently to the same stimulus.

This factsheet explores the types of bonuses and incentives, their use, and their potential benefits and drawbacks. It also highlights research evidence and the possible implications of using such schemes.

 

This factsheet was last updated by Charles Cotton: Senior Performance and Reward Adviser, CIPD

Charles directs CIPD’s research agenda and public policy on performance and reward. He speaks for CIPD at government consultations on topics such as, pensions, retirement, CEO remuneration, low pay and employee tax.  

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